More than a dozen states are withdrawing from federal unemployment programs that have given an extra $300 weekly benefit to people unemployed during the pandemic.
Don’t expect Kentucky to join them any time soon.
The American Rescue Plan made the federal programs available until Labor Day, however, at least 16 states have chosen to opt out several months earlier.
Each of the 16 states ending the federal enhanced benefit is led by Republican governors including Tennessee, Missouri, Arkansas, and Georgia.
Kentucky Governor Andy Beshear, a Democrat, said Monday the enhanced benefits are pumping money back into the state’s economy on a weekly basis and that ending the program now would have an adverse economic effect.
click to download audioRepublican leaders have pointed to labor shortages as the main reason why the enhanced federal benefit should end. They claim the benefits offer an incentive for people to stay home and not look for jobs which leave businesses struggling to fill open positions.
While not giving a timetable on when Kentucky should opt out of receiving the extra federal benefit, Beshear said the state should be smart on when to pull the plug.
click to download audioThe Labor Department said the average jobless American got $350 a week in state benefits in March.
States such as Arizona and Montana that have opted out of receiving the federal benefit are offering a one-time bonus for people who find and hold a job.
Job sectors such as hospitality, food service, and restaurants have seen the sharpest decline in available workers.
