Unemployment declining faster in states that are cutting off $300 enhanced federal benefits, according to WSJ

According to the WSJ, unemployment is falling faster in states that have ended federal weekly $300 benefits.Missouri has ended federal enhanced benefits for residents who are unemployed as of June 12.Despite being below the national average in unemployment, many people continue to struggle.Subscribe to the 10 Things in Politics Daily Newsletter.According to The Wall Street Journal, the number of Americans who are receiving unemployment benefits is falling faster in Missouri than in 21 other states of the United States that have opted out from receiving enhanced federal payments.The $1.9 trillion COVID-19 relief bill that President Joe Biden signed into legislation in March included weekly federal pandemic compensation for $300 to the state unemployment checks. These benefits are due to expire in September.Recent Republican-led states have moved to end the expanded unemployment aid. They decry its impact on job creators, and claim that it prevents people from applying for millions of jobs. As the country recovers from the coronavirus pandemic, most Democratic-led countries have welcomed the aid. They call it a vital resource to the unemployed.GOP Governor. Missouri Gov. Mike Parson said that while federal benefits were welcomed at the peak of the pandemic but that the state was now facing workforce problems, continued payments to the government "worsened" its situation.Most GOP governors decided to end federal aid they considered too generous amid concerns about a labor shortage.According to data from Department of Labor, Missouri's May unemployment rate was 4.2%. This is lower than the national average of 5.8%.Missouri became the first state to end federal enhanced benefits for residents of unemployed states as of June 12.For the week ending June 19, seven more states followed suit, and this weekend, ten additional states will stop providing assistance to residents who are unemployed.Four more states will be able to cut enhanced benefits by July 10.Continue reading: Meet 7 BidenWorld consiglieres who are long-serving and a few relative newcomers who have exclusive White House accessBased on an analysis of Jefferies LLC economists, the number of people who received unemployment benefits fell by 13.8% in the week ending June 12 compared to mid May in states where governors explicitly stated that enhanced benefits would cease in June.This compares to a 10% decrease in benefits states that end benefits in July and a smaller 5.7% drop in benefits states that plan to keep them until September funding ends.Individuals who are impacted by the federal funding will lose $300, but they will still be eligible for state unemployment benefits.Jefferies' chief financial officer Aneta Markowska told the Journal that the Journal was seeing the results of states opting for enhanced benefits.She said that there was a growing response to the programs' end, adding that employers were being forced to compete with the government for money and it makes it difficult to attract workers.Some economists and Democrats, however, point out issues like a lack in adequate child care, low hourly wage in certain industries, and continued trepidation about COVID-19 as reasons why many people haven't returned to the workforce.Missouri's workforce performed relatively well, with its unemployment rate reaching 12.5% in April 2020. This is compared to the 14.8% national rate.Despite the more optimistic outlook, real people still struggle, even despite the negative numbers.The Journal spoke to Davina Roberson (45-year-old Fenton Mo. mother of two special needs boys) who was furloughed last year from her $26-an hour job as a corporate travel agent.She would lose the critical health benefits she received from her previous employer if she accepted a new job.Roberson stated to the Journal that she now seeks help from food pantries as well as clothing charities.Ms. Roberson said that she doesn't feel the need to return to work. "But if i took a minimum wage job, I would be working for child care and health insurance and nothing to live on," Ms. Roberson said.