After today’s lackluster jobs report, it’s become clear to everyone that the enhanced unemployment benefits being paid out because of the pandemic are incentivizing people to not re-enter the workforce.
From the NYT’s Neil Irwin:
Dang, the labor force participation rate actually edged down. That is consistent with the story that people are holding back, not re-entering the workforce en masse despite the economy re-opening.
— Neil Irwin (@Neil_Irwin) June 4, 2021
This really isn’t shocking:
Turns out people do respond to rational incentives, and when you give them free money to stay home, they'd prefer to stay home. https://t.co/lZpkwKr9dH
— Jeff B. tried to do his best, but he could not (@EsotericCD) June 4, 2021
And you can add the Biden administration to the list of folks changing their tune. From National Economic Council Director Brian Deese at today’s press briefing:
Two top Biden aides are declining to repeat that enhanced unemployment benefits are not encouraging people to stay home, as Biden stated clearly last month. Instead Deese highlights they are “temporary” and Psaki says governors have “every right” to end enhanced benefits.
— Kaitlan Collins (@kaitlancollins) June 4, 2021
“Purely coincidental changing of the talking points,” right?
Purely coincidental changing of talking points after disappointing jobs report. https://t.co/NVnmVr9oHb
— Rep. Peter Meijer (@RepMeijer) June 4, 2021
More from the briefing:
Asked yes/no if expanded UI benefits contributed to slower-than-anticipated (but still positive) hiring, Brian Deese, top WH econ advisor, doesn't answer really. Describes it instead as a "temporary lifeline," points out they're set to expire in September.
— Tony Romm (@TonyRomm) June 4, 2021
Asked if the White House believes Democratic-run states should also cut supplemental UI benefits, White House's Brian Deese says "that program was designed as a temporary lifeline … the temporary boost is slated to expire in 90 days. As the president said, that's appropriate"
— Jeff Stein (@JStein_WaPo) June 4, 2021
Asked again, Deese says Biden believes the UI benefit has provided a temporary "critical lifeline" but reiterates "that is a very short-term issue" and pivots immediately to talking about the vaccination strategy
— Jeff Stein (@JStein_WaPo) June 4, 2021
Watch for yourself:
Deese: The “critical lifeline” provided boosted unemployment benefits was “designed to be temporary and to expire in about 90 days.” https://t.co/76kljUbxn8 pic.twitter.com/6HIxtEpQOs
— USA TODAY (@USATODAY) June 4, 2021
***
Join the conversation as a VIP Member