Learning and Finance

current trends in the world of learning

Unemployment benefit extension 2015; study contends that benefit reduction pushed Americans back to work; Extending benefits news now

Posted on | January 29, 2015 | No Comments

Unemployment benefits were cut and job opportunity followed:
Politicians and policy leaders have argued the merit of another unemployment benefit extension for the long term unemployed for months, but the debate remains contentious and unresolved. Congress allowed unemployment benefits to run out on over a million Americans back in December of 2013 and since that point, many more long term unemployed had to do without federal aid. The good news though is that during the last year, the unemployment rate in the U.S. consistently dropped lower.
Those that argued against another round of long term unemployment have had ample opportunity to acknowledge this data and to admonish those that believed another unemployment benefit extension was the answer. Now, another study has been published which contends that cutting unemployment benefits was a catalyst for creating millions of jobs in the U.S. This is just the latest news that some policy leaders will use as ammunition against another future unemployment benefit extension.
Study contends that job creation happened as a result of unemployment benefit cuts:

According to the working paper from the National Bureau of Economic Research, more Americans accepted lower paying jobs after Congress decided not to extend federal unemployment benefits at the end of 2013. The authors of the paper state that the reduction in benefits helped to create almost 2 million jobs throughout 2014. The paper reveals that an association exists between benefit reduction and employment increases. The greater the drop in benefits, the greater the increase in employment. It should be noted that the results of this paper are controversial and many opponents of the results disagree with the methods used during the research.

Genny Germano

keep looking »