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US In the United States, unemployment benefits and economic recovery are not always good

23:05  11 may  2021
23:05  11 may  2021 Source:   liberation.fr

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Joe Biden à la Maison Blanche, le 10 mai 2021 © Nicholas Kamm Joe Biden at the White House, May 10 2021

The generous unemployment benefits paid in the United States for facing the pandemic have Permitted to millions of families to stay afloat, but they are now controversial, to the point that some Republican states have removed them and that Joe Biden has recalled that they would be withdrawn from the unemployed who have refused a job.

The Republicans had been distinguished in this additional aid granted by the federal government, including the $ 300 weekly dollars granted to all the unemployed, arguing that they encourage staying at home rather than looking for work.

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The very disappointing job report gave them on Friday an additional lever, while 266,000 jobs only were created in April, and not a million as expected.

"It seems obvious that (these aids) were perhaps necessary in May last year, but no longer in May this year", thus affirmed the Republican Governor of the State of Mississippi, Tate Reeves, Monday on his facebook account.

So it decided that it was time to end it, joining Alabama, Arkansas, Montana, South Carolina, which reduced or removed these additional aids.

Each state of the country fixes the duration and amount of the allowances, but within the last revival plan adopted at the Congress and signed by Joe Biden they had been extended to all until the end of August, including for those who have exhausted their rights, and extended to the self-employed.

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All this will also be removed in Alabama from June 19th, announced Monday Kay Ivey, the governor of this state of the South, evoking aid that "contribute to a shortage of labor that compromises the economic recovery In progress".

Return to the usual scheme for the unemployed of Alabama: unemployment paid for up to 26 weeks (just under five months), up to $ 275 per week at most.

- "Security Net" -

But the US President Democrat Joe Biden ensures that the link between these aids and the shortage of workers is not so obvious. No question, therefore, to reduce the wing across the country. States that wish will be able to continue to help their unemployed.

There are always 8 million jobs, compared to before the pandemic, "and for many of these people, unemployment benefits are a safety net," he said on Monday from the White House.

"People who claim that Americans will not work, even if they find a good and fair opportunity, underestimate the American people. We will insist that the law is respected (...) but we are not Let's not turn your back on our compatriots ".

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Gares to those who would benefit from the generosity of the public authorities, warned the American president.

"The law is clear: if you tap an unemployment benefit and we offer you a suitable job, you can not refuse this job and simply continue to reach unemployment," he insured, conceded "a few Exceptions related to COVID-19, so that people are not obliged to choose between their safety and a salary ".

- Active job search required -

A study published by the University of Massachusetts in February did not report "no element" showing that a higher amount of unemployment benefits "has a significant impact" on hiring.

All the more than the 16.6 million Americans who always touched a help in early April must show a white paw to continue to benefit, and prove that they are actively looking for a job.

But companies have been deploying recruitment difficulties for several months, and indicate that they are forced to offer higher wages to attract workers.

"Small business patterns see sales increase but are forced by a lack of workers," says Bill Dunkelberg, Chief Economist of the National Federation of Independent Enterprises (NFIB), in a statement published on Tuesday.

The observation is the same for large companies. For example, the Chipotle Fast Restore Chain announced on Monday that it increased the minimum wage to hiring, now between 11 and $ 18 per hour.

The state of Montana, in the Northwest, offers it $ 1,200 to the unemployed who accept a job.

HS-Jul / JUJ / CJC

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