Many U.S. states suspend unemployment benefits because of COVID-19's influence

Economists say the unemployment rate remains high despite companies not recruiting enough workers, due to concerns about the epidemic. (Source: CNN)

A series of U.S. states announced on May 11 that they would end the federal government-provided supplementary unemployment benefits program amid the COVID-19 outbreak, saying the program is causing labor shortages.

Iowa, Alabama, Arkansas, Mississippi, Montana, and South Carolina announced cuts to additional subsidies planned to be paid through September as part of a thích 1,900 billion stimulus package approved in March, each of which is granted an additional 3 300 a week in addition to regular state subsidies.

The move comes after a report on the U.S. employment situation was released last week, with only 266,000 jobs restored in April, far short of the expected 1 million jobs restored.

[About 1% of vaccinated people in the U.S. remain positive for SARS-CoV-2]
Some U.S. employers and Chambers of Commerce have argued that the slow recruitment is partly due to generous government unemployment benefits.

People lined up for unemployment in Arkansas. Source: Reuters

Iowa Governor Kim Reynolds said on Twitter that the state would cease participating in all federal unemployment benefits programs associated with the COVID-19 pandemic. She added: "It's time for everyone to get back to work." 

Other states have also discontinued federal special assistance programs. Montana recently offered a "return to work bonus," which would grant USD 1,200 to workers who receive jobs and escape unemployment.

In Mississippi, Governor Tate Reeves said he had discussed with many small business owners and found special assistance programs " probably already needed in May last year, but no longer needed in May this year."

He said it was impossible to fully recover from recruiting thousands of existing jobs in the state. 

According to the U.S. Department of Labor's employment report, the number of jobs to be employed in the U.S. rose to a record high in March, while the number of jobs lost fell to a record low.

On the last day of March, the number of jobs to be employed increased by 597,000 to 8.1 million, the highest level since December 2000.

The biggest gains were accommodation and catering, with 185,000 vacancies. Labour demand in state and local educational institutions increased by 155,000.

In the field of Arts, Entertainment and creativity, the number of jobs to hire increased by 81,000. Job opportunities also increase in manufacturing, trade, transportation and public services as well as finance. 

Meanwhile, Labor losses in March were 1.5 million, down from 1.7 million in February and a record low. The number of unemployed workers in the construction sector fell by 93,000, thanks to large housing demand. 

Companies must seek labour to meet the need to be released after the pent-up period, thanks to massive stimulus packages and quickly controlled epidemics. 

Economists say the unemployment rate remains high despite companies not recruiting enough workers, due to concerns about the epidemic. Some people remain at home to look after their children even though the schools have gradually returned to school in class.

Also, due to the Pandemic, there were retired workers and people who changed careers. However, the opposite of employment opportunities and unemployment will be addressed as companies raise wages and more people are vaccinated against the disease./.