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How Will the End of Enhanced UI Benefits Affect the State Labor Market?

Sep 08, 2021

How Will the End of Enhanced UI Benefits Affect the State Labor Market?

Republicans long argued that the enhanced unemployment insurance benefits that were made available to claimants under the CARES Act discouraged people from returning work, while Democrats often countered that the extra benefits had little or no effect on the job market and were necessary due to the economic devastation brought about by the coronavirus pandemic.


Labor Day marked the statutory deadline set by Congress for the end of enhanced UI benefits and the extra $300 a week that many claimants had been receiving on top of regular UI benefits.


Many states chose to end the extra benefits prior to the statutory deadline fearing prolonged labor shortages. Gov. Larry Hogan tried to do that in Maryland but was blocked by a state court.


Maryland’s unemployment rate is 6%. The national unemployment rate is 5.2%.


Will the state’s unemployment rate go down now that the enhanced benefits are no longer available?

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Maryland Retailers Association President Cailey Locklair said employers are still struggling to fill the many open positions.


“We believe hiring will pick up with the expiration of additional benefits. We would also still like to see previous search for work requirements reinstated too. Employers are still having a hiring crisis that spans all industries and job openings are at record highs. Additionally, employers are offering highly competitive salaries and benefits and have proven over and over again it is safe to return to work.”


Click here to read the full article from the Maryland Reporter!

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