With the Labor Market Suffering, is it Time for Americans to Unionize?

Washington, DC – After what many see as a disappointing April jobs report, state officials in at least 11 states are threatening to cancel the additional $300 per week added unemployment benefits passed in the American Rescue Plan. These benefits, paid for solely by the federal government, are set to expire in September 2021. Governors are attacking the generous unemployment compensation and plan to end the additional subsidy in June. Below are the states that might see pandemic unemployment benefits cut before the rest of the country:

Background:
The first pandemic economic recovery bills, passed in bipartisan efforts in 2020, supplemented unemployment compensation benefits with additional federal support of first $600 then $300 to stabilize the US economy and avoid a depression. The new Biden administration bolstered this critical unemployment fund in March 2021 with the passage of the American Rescue Plan, which provided $300 a week in from the unemployment compensation fund through September 2021. After what some consider to be a disappointing April jobs report, some legislators and Governors have stepped up to demonize the program, though economists have reported that these concerns about “too generous” benefits are simply not true.

Why you should take action:
The economy IS recovering with help of the American Rescue Plan, and recovery packages passed in 2020. Unemployment benefits, just like basic income programs, infuse money into the local economy. Households use the extra income to pay rent and utilities or to buy food and clothes for their kids. Here are more facts about the April jobs report and unemployment (thanks to our friends at the Economic Policy Institute):

• Low-wage sectors—where workers are receiving a higher share of their prior income than in other sectors—saw much faster job growth than higher-wage sectors in April. This is exactly the opposite of what you’d expect to see if the $300 per week was keeping people from working.
• Labor force participation rose rapidly in April, but the gains were all among men—women actually lost ground. Given that women still shoulder the lion’s share of caregiving responsibilities, this points to care needs being the thing holding back labor supply, not unemployment benefits. 
• The disappointing net job gains in April were not due to a slowdown in hiring—hiring actually rose. The disappointing April job gains were due to a large increase in layoffs and other job separations among women (most often care-givers, especially for kids where schools are not yet open). 
• Millions of workers still have legitimate health concerns about returning to work. But numbers show that for every 10% increase adults being fully vaccinated is associated with a 1.1 percentage point increase in employment. (Aaron Sojourner, Labor Economist)

Businesses are slowly opening, and will continue to do so after the CDC’s announcement that fully vaccinated people can resume most pre-pandemic activities. It will take time to get the economy back up and running. In the meantime, contact your Governor to say, “Don’t cut off unemployment! It puts needed cash in the pockets of hurting families, and helps stimulate our local economy!”

Extra cash has contributed to the economy rebounding, and taking away the benefits damages the ability for people to pay the rent or provide food. This philosophy will not incentivize Americans to return to work, but instead will further divide this country. Tell your Governor to #SaveUnemployment!