Sen. Marshall: Time to Cut Unemployment Benefits So Economy Can Get Back to Work

(Washington, D.C., May 21, 2021) – U.S. Senator Roger Marshall, M.D. penned an op-ed for the Kansas City Business Journal highlighting the need to help get Kansans back to work and halt enhanced unemployment benefits brought on by President Biden and the Democrats. Earlier this year, Democrats forced through legislation without any Republican support that provided an additional $300 per week in federal unemployment benefits, in turn making it more profitable for many Americans to stay unemployed. This month’s dismal Department of Labor (DOL) report showed an uptick in the unemployment rate to 6.1% and employers only adding 266,000 jobs last month, despite widespread projections of over one million jobs to be gained in April. Senator Marshall’s op-ed follows the introduction of his Get Americans Back to Work Act, which decreases the federal unemployment benefits to $150 per week at the end of May, and then fully repeals them out at the end of June. In his op-ed, Senator Marshall said in part,

“Throughout my travels across Kansas, I hear constantly how employers are struggling to find people for open jobs because folks are staying at home due to the rich unemployment benefits and the stimulus checks that Democrats continue to enhance. While there are certainly people that needed access to increased unemployment benefits during the heart of this pandemic, we should not be in the business of creating lucrative government dependency that makes it more beneficial to stay unemployed rather than return to work… At a time when our nation is on its way to reaching herd immunity and businesses are emerging from government imposed lockdowns, President Biden has delivered them a government-imposed labor shortage. For these reasons, I have introduced legislation to repeal these enhanced unemployment benefits and encourage Americans to return to work so we can truly reopen the economy and get back to normal.”

You may click HERE or scroll below to read Senator Marshall’s op-ed in its entirety.

Time to Cut Unemployment Benefits So Economy Can Get Back To Work

By: U.S. Senator Roger Marshall, M.D.
May 20, 2021
Kansas City Business Journal

Throughout my travels across Kansas, I hear constantly how employers are struggling to find people for open jobs because folks are staying at home due to the rich unemployment benefits and the stimulus checks that Democrats continue to enhance. While there are certainly people that needed access to increased unemployment benefits during the heart of this pandemic, we should not be in the business of creating lucrative government dependency that makes it more beneficial to stay unemployed rather than return to work.

Prior to the pandemic, Kansas companies had thousands of open jobs. The unemployment rate had been hovering at just above 3% for more than nine months, and many companies had raised wages by roughly 20% in an effort to attract a workforce. Now, after months of pandemic-related stay-at-home orders and government-imposed lockdowns, businesses are ready to reopen and welcome back customers. However, the April jobs report from the U.S. Department of Labor shows an uptick in the unemployment rate and only 266,000 jobs added last month, down from 916,000 jobs added in March.

In March, congressional Democrats forced through the American Rescue Plan without a single Republican vote, and extended the generous $300 per week in additional federal unemployment assistance until September. Those benefits, when coupled with the extended state benefits, mean that the average unemployment recipient earns more on this assistance than they would if they worked a full-time job at $15 per hour. Keep in mind that both state and federal unemployment benefits have been extended for a period that is much longer than most states have traditionally allowed.

I’ve heard stories from manufacturers across the state struggling to recall their workers, despite offering generous benefits and high-wage jobs, or restaurants remaining closed because they don’t have enough employees for basic operations. Homes aren’t being built because of a lack of labor, and hotels are turning away business because they don’t have employees. One company even shared a story of offering a high-skilled and high-wage position, only to be turned down because the prospective employee claimed they were comfortable on UI and the hours clashed with the local bowling league. Even the broader supply chain is beginning to feel the impacts, as a lack of truck drivers means that building materials, computer chips, and common household goods like toothpaste and toilet paper can’t reach their destination, or food-processing plants are short-staffed and turning out less product than usual, driving up the cost for consumers.

A company in Western Kansas recently shared with me that they’re short-staffed by nearly 70 employees and are unable to match the strong incentive to stay home provided by the combined state and federal unemployment benefits in order to rehire their workforce. The company’s mission is to provide educational and work opportunities for people with developmental disabilities, giving nearly 200 individuals in the area the independence, inclusion and training that they need to achieve success. This labor shortage directly affects their ability to meet the needs of the people they serve.

Over the past year, we’ve made great strides to develop safe and effective vaccines. Because more Americans are getting their shots, we’ve seen Covid cases decline to nearly a quarter of where they were in January. At a time when our nation is on its way to reaching herd immunity and businesses are emerging from government imposed lockdowns, President Biden has delivered them a government-imposed labor shortage. For these reasons, I have introduced legislation to repeal these enhanced unemployment benefits and encourage Americans to return to work so we can truly reopen the economy and get back to normal.

U.S. Sen. Roger Marshall is a Republican representing the state of Kansas.

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