Unemployment Benefits Are Not Creating A Worker Shortage

While some employers may be struggling to hire for one reason or another, economists say generous unemployment benefits are not the cause.

As the U.S. economy bounces back from the COVID-induced downturn, some employers say they’re having a hard time finding workers. GOP lawmakers like Rep. David Rouzer (N.C.) blame the safety net. “This is what happens when you extend unemployment benefits too long and add a $1400 stimulus payment,” Rouzer said on Twitter last week, posting a photo from a Hardee’s that said it was closed for lack of staff. “Right when employers need workers to fully open back up, few can be found.” It’s a dubious argument. Republicans said this same thing last year when Congress passed a big relief bill that added $600 per week to state unemployment benefits for four months.