Early withdrawal from unemployment benefits to impact job market

Early withdrawal from unemployment benefits to impact job market

Aug 25, 2021

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Unemployment benefits were being provided by the state to people who lost their jobs during the pandemic. However, some leaders believe that continuing to provide
unemployment benefits has led to labour shortage. People are reluctant to go back to full-time employment. This resulted in some states withdrawing from the unemployment benefits program earlier than speculated. The states that withdrew early pushed their people into employment.

A study conducted by researchers at Columbia, Harvard, University of Massachusetts Amherst, and the University of Toronto found that states that ended federal benefits early
noticed an increase in job gains by the unemployed, the employment rate jumped by 4.4 percent as opposed to the states that kept the benefits.

Source: CNBC

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