Republican governors, Biden dispute whether Covid-related unemployment benefits undermine job seeking

Growing number of GOP-led states move to end Covid unemployment benefits President Joe Biden urged businesses to boost pay for workers to spur labor growth in a speech Monday, saying, "Americans want to work." NBC News

A growing number of Republican-led states are moving to end the extra $300 a week in Covid-19 pandemic-related unemployment benefits, arguing that the relief is discouraging U.S. workers from rejoining the labor force.

"It has become clear to me that we cannot have a full economic recovery until we get the thousands of available jobs in our state filled," Mississippi Gov. Tate Reeves, a Republican, said in a statement Monday, adding that the benefit will end next month. "The purpose of unemployment benefits is to temporarily assist Mississippians who are unemployed through no fault of their own."

Reeves directed the state to enforce all eligibility requirements to receive unemployment benefits, a process that was waived during the pandemic.

Arkansas, South Carolina and Montana have also announced that they would end the program within the next month.

A disappointing April employment report found that the economy gained only 266,000 jobs despite widespread forecasts that the number would top 1 million and that the report would show strong payroll growth after widespread vaccinations spurred Americans to return to activities like dining out and traveling.

The unemployment rate rose from 6 percent to 6.1 percent, which was also contrary to expectations but still down from a peak of 14.8 percent in April 2020, the highest level since the Great Depression. The U.S. Chamber of Commerce blamed the $300-a-week federal benefit for the sluggish report.

The White House also clarified a rule Monday that workers "may not turn down a job due to a general, non-specific concern about COVID-19 and continue to receive benefits," and it announced the launch of the Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan, to provide $350 billion in emergency funding for state, local, territorial and tribal governments.

"I know there's been a lot of discussion since Friday's report that people are being paid to stay home, rather than go to work," Biden said. "We don't see much evidence of that.

"We're going to make it clear that anyone collecting unemployment who is offered a suitable job must take the job or lose their unemployment benefits," he added.

Montana Gov. Greg Gianforte, a Republican, announced last week that the state will end the enhanced pandemic unemployment benefits next month and instead will offer a $1,200 bonus for unemployed workers who return to work. ...

ALSO SEE: Biden: Workers can't turn down job and get benefits

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