What An Incredible Coincidence!

Yesterday The Epoch Times reported that job searches in 22 Republican-led states jumped 5 percent on the day those states announced that they were ending the government’s supplemental unemployment benefits. What a coincidence!

The article reports:

Job searches jumped by 5 percent in 22 Republican-led states on the day each announced it was moving to end the Biden administration’s pandemic unemployment benefit boost, a Thursday analysis shows, suggesting a link between the jobless compensation top-up and peoples’ interest in looking for a job.

While the analysis, authored by Jed Kolko, Chief Economist at the Indeed Hiring Lab, notes that the increase in job searches was “temporary, vanishing by the eighth day after the announcement,” it may be viewed as an arrow in the quiver of those who contend that generous unemployment benefits are creating a disincentive for people to take up jobs.

“It is, of course, still unclear how this temporary boost in search activity will affect hiring or wages,” Kolko wrote in the analysis. “And the premature end of these benefits in June and July could well have a different effect on search activity, hiring, and wages than these announcements in May did,” he added.

A possible factor as to why the effect faded quickly is media buzz around the date of the announcement, as well as the opt-outs of the supplemental federal unemployment programs are not due to come into force until June or July. Kolko told the Washington Examiner that there could be a jump in job searches when the benefits actually expire.

I think it’s time some common sense wandered into this discussion. If I can make more money staying home than working, I am going to stay home. If I have to prove that I am looking for a job in order to collect increased benefits, I will probably look for a job. If I can simply sit home and watch television and collect increased benefits, I will do that. Human nature is pretty obvious here–would I rather stay home in my pj’s and get paid or would I rather get up, shower, and go to work only to be paid less? Seems pretty clear.