Job hunting has been muted in 12 states that opted out of federal unemployment programs in recent weeks, suggesting the policy may not be working as p

Cutting off unemployment benefits early is not pushing people to find work, data suggests

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2021-06-24 19:30:08

Job hunting has been muted in 12 states that opted out of federal unemployment programs in recent weeks, suggesting the policy may not be working as planned, according to a new analysis by job site Indeed.

The states ended the pandemic-era benefits — including an extra $300 a week — about three months ahead of their Sept. 6 expiration.

Job searches are about 4% below the national average in Alaska, Iowa, Mississippi and Missouri, which stopped paying the federal benefits as of June 12, according to the analysis published Tuesday.

Activity is 1% lower in eight states — Alabama, Idaho, Indiana, Nebraska, New Hampshire, North Dakota, West Virginia and Wyoming — that ended them June 19.

They're the first among a total of 25 states, all led by Republican governors, withdrawing from federal unemployment programs to encourage recipients to look for work amid record job openings.

But the Indeed data — which measures clicks on job posts — suggests the opposite dynamic of what one would expect, given the policy intent of ending benefits early, according to Indeed economist AnnElizabeth Konkel.