Job searches are lower in states that were first to cut off federal pandemic-related unemployment benefits, compared to states that have continued to participate in those federal programs, according to analysis by Jed Kolko, the chief economist for the online jobs site Indeed.
Governor Kim Reynolds announced on May 11 that Iowans would cease to be able to collect the pandemic-related unemployment, effective June 12, putting Iowa among the first four states to end their participation in the federal programs. Tens of thousands of jobless Iowans were receiving a total of more than $30 million a week through the three discontinued programs. Iowa business groups and Republican politicians applauded the move, saying the extra unemployment benefits were holding back the economy by keeping people out of the workforce.
Kolko regularly tracks online job searches and found last month that “job search activity on Indeed increased, relative to the national trend, in states that announced they would end federal UI benefits prematurely.” However, “This increase was temporary, vanishing by the eighth day after the announcement. In the second week after the announcement, the state’s share of national clicks was no higher than it was during the late-April baseline.”
Kolko wrote on June 22 (emphasis added),
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