The Price of Enhanced Unemployment Benefits

                                                           

The fruits of the decisions by a score of Republican governors to cut short the federal enhancements to unemployment benefits appeared in the ADP private payroll report on Wednesday.     June 30, 2021   Today's Top Stories From the Breitbart News Desk The fruits of the decisions by a score of Republican governors to cut short the federal enhancements to unemployment benefits appeared in the ADP private payroll report on Wednesday. Private-sector employers added 692,000 workers to their payrolls, easily beating the consensus estimate for 550,000. Notably, 332,000 of those new workers were in the leisure and hospitality sector, which employs many workers at pay levels making them most likely to be disincentivized to work by very high unemployment benefits. It's worth pausing for a moment to get specific about just how much the jobless were receiving on enhanced unemployment. The precise amounts received by workers varies from state to state and depends on how much a worker earned before being laid off. But on average, jobless benefits pay around $320 per week, the equivalent of around $13.33 per hour. That's not very much to get by on, and it isn't meant to be. It's meant to bring in some income for a short time until a new job can be found. The federal enhancement brought the weekly average up to $600 per week, the equivalent of nearly $18 an hour. That's more than a lot of entry-level jobs pay, including many jobs in restaurants and hotels around the country. And in states like Washingon and Massachusetts that are especially generous with unemployment benefits, average enhanced benefits amount to almost $800 per week or more than $23 per hour. The effect was to put millions of workers out of reach of employers. Keep in mind that it's not enough for employers to simply beat the prevailing jobless wage. An employer paying $25 an hour in Washington—which is an annual wage of $45,500—is really only paying $2 an hour more than not working. You don't have to be especially lazy to decide that working 35 hours a week for an extra $70 is not as attractive of an offer as not working at all but being paid well. If benefits pay enough, there may be no wage that would lure a substantial portion of the population into a job. – Alex Marlow & John Carney Breitbart News Network     TOP STORY   Private Payrolls Rose by 692,000 in June, ADP Says Private payrolls growth increased at a faster rate than expected in June, ADP data showed Wednesday, suggesting that the decisions in Republican-led states to end super-sized unemployment benefits are spurring Americans to accept the millions of jobs businesses have opened in recent months. The gain of 692,000 was well above the 550,000 Econoday estimate. But it fell short of May's 886,000, which itself was revised down from the preliminary estimate of 978,000. Despite the revision, May was the best month in ADP data since September of last year. Hiring surged in the leisure and hospitality sector, ADP data show. Businesses added 332,000 jobs in the sector, making it the strongest of the ADP report's 10-sectors. [Click here for more]   IN OTHER STORIES... U.S. Gas Prices Surge to Highest Level in 7 Years Ahead of July 4 Break Gas prices across the United States are at their highest level since late 2014 with shortages predicted in the run up to the Fourth of July holiday weekend. According to AAA, the national average on Tuesday is about $3.11 per gallon and by this weekend, that figure may rise another... [Click here for more]   General Mills Warns of 'Inflationary Environment,' Plans to Hike Prices General Mills said Wednesday that it expects inflation to raise its costs and announced plans to raise prices to preserve margins. The packaged-food company said total cost inflation is expected to amount to about 7 percent of the company's cost of... [Click here for more]   Pending Home Sales Unexpectedly Soar 8% as Americans Flee Cities Pending home sales jumped higher in May, rising to the highest level for the month since 2005. The National Association of Realtors said on Wednesday that its Pending Home Sales Index, based on contracts to buy previously owned homes, rose... [Click here for more]

FOLLOW

Did you receive this email from a friend? Sign up to receive Breitbart Business Digest.

©2021 Breitbart News 149 S. Barrington Ave. #401 Los Angeles CA 90049 USA Want to change how you receive these emails? You can *update your preferences or *unsubscribe from this list. Subscription Information This email was sent to  Webmaster220 Bible Study Blog *the blog owner has deleted the hyperlink intentionally