Wading into an argument dividing economists and job experts, the U.S. Chamber of Commerce has announced a move to do away with the weekly $300 federal unemployment benefits.
The nation’s largest business lobbying group said it is calling upon Congress to terminate the program as soon as possible, rather than letting it end as scheduled in September, contending that the benefits are hampering job growth.
In a statement, Neil Bradley, the Chamber’s executive vice-president, pointed to the most recent jobs numbers as evidence that “paying people not to work is dampening what should be a stronger jobs market.”
“We need a comprehensive approach to dealing with our workforce issues and the very real threat unfilled positions pose to our economic recovery from the pandemic,” continued Bradley.
The Chamber executive added that as it stands now, the $300 benefits have resulted in “approximately one in four recipients taking home more in unemployment than they earned working.”
Last month the National Federation of Independent Business said that some 44% of business owners currently have job openings they could not fill.
While some economists and public figures have said that the ongoing weekly benefits have become a disincentive for many people to seek new work, others have deemed the benefits essential in a still-pandemic economy.
Oregon Senator Ron Wyden, chairman of the Senate Finance Committee, said “enhanced jobless benefits helped save the economy by ensuring millions of families could pay rent and buy groceries during this crisis.”
Wyden added that “cutting off all benefits while millions of workers have not been able to return to work could cause tremendous financial pain and sabotage our economic recovery.”
The $300 in weekly benefits was enacted last year, and subsequently extended until September by President Biden earlier this year as part of his $1.9 trillion stimulus package.
By Garry Boulard