{"id":587875,"date":"2021-07-10T15:06:00","date_gmt":"2021-07-10T19:06:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=587875"},"modified":"2021-07-10T15:06:02","modified_gmt":"2021-07-10T19:06:02","slug":"fed-report-to-congress-says-enhanced-federal-unemployment-handouts-are-restricting-growth","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-report-to-congress-says-enhanced-federal-unemployment-handouts-are-restricting-growth\/","title":{"rendered":"Fed Report To Congress Says Enhanced Federal Unemployment Handouts Are Restricting Growth"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffed-report-to-congress-says-enhanced-federal-unemployment-handouts-are-restricting-growth%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=587875&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-79159117.jpg?w=1200&amp;h=800&amp;ixlib=react-9.0.3\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><span>In its semiannual report to Congress, the Federal Reserve pointed to enhanced federal unemployment insurance as a factor restricting economic growth.<\/span><\/p>\n<p><span>Despite a return to normalcy in the United States following COVID-19 and the lockdown-induced recession, several <\/span><a href=\"https:\/\/www.dailywire.com\/topic\/unemployment\"><span>analyses<\/span><\/a><span> reveal that a nationwide shortage of available labor is dampening the recovery. The problem is especially <\/span><a href=\"https:\/\/www.dailywire.com\/news\/report-labor-market-healthiest-in-red-states-suffering-in-blue-states\"><span>acute<\/span><\/a><span> in Democrat-run states that have not opted out of the $300-per-week federal unemployment supplements, which are set to automatically expire on September 6.<\/span><\/p>\n<p><span>At several points in their seventy-five-page <\/span><a href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/files\/20210709_mprfullreport.pdf\"><span>report<\/span><\/a><span>, the Federal Reserve \u2014 which controls monetary policy in the United States \u2014 stated that the federal handouts are worsening labor shortages:<\/span><\/p>\n<blockquote readability=\"12\">\n<p><i><span>With economic activity rebounding, labor demand rose briskly in the spring, while the supply of labor struggled to keep up. Employers reported widespread hiring difficulties, job openings jumped to about 30 percent above the average level for 2019, and the ratio of job openings to job seekers surged\u2026 enhanced unemployment benefits have allowed potential workers to be more selective and reduce the intensity of their job search.<\/span><\/i><\/p>\n<\/blockquote>\n<p><span>In another portion of the report entitled \u201cThe Uneven Recovery in Labor Force Participation,\u201d the Fed lists unemployment benefits as a factor widening workforce participation gaps between demographic groups:<\/span><\/p>\n<blockquote readability=\"17\">\n<p><i><span>The support from enhanced UI has been especially consequential for lower-wage workers, who have borne the brunt of recent job losses and who have benefited most from broader coverage and higher benefit levels.<\/span><\/i><\/p>\n<p><i><span>Many of the factors constraining labor force participation should gradually abate in the coming months, and, as they do, the overall participation rate should rise and the demographic disparities in labor force participation that widened during the pandemic will likely continue to narrow\u2026 With federal pandemic UI programs slated to end in September and many states withdrawing from them in advance of their nationwide expiration, any effects of enhanced UI benefits on labor force participation will likely wane soon as well.<\/span><\/i><\/p>\n<\/blockquote>\n<p><span>Though the Fed\u2019s report explicitly named the enhanced unemployment insurance as one cause of the labor market distortions, it stopped short of urging policymakers to rescind it.<\/span><\/p>\n<p><span>Likewise, during a recent <\/span><a href=\"https:\/\/www.dailywire.com\/news\/unstable-employment-high-inflation-jim-jordan-blasts-fed-chair-powell-in-hearing-on-covid-receovery&#039;\"><span>testimony<\/span><\/a><span> before the House of Representatives\u2019 Subcommittee on the Coronavirus Crisis, Fed Chair Jerome Powell asserted that the decision to alter the enhanced benefits is a decision \u201cfor people who stand for election.\u201d<\/span><\/p>\n<p><span>Powell told Rep. Jim Jordan (R-OH) that there are multiple causes for the sluggish labor market recovery: \u201cIn terms of things that are weighing on people getting in the labor force, I think it\u2019s the three things I mentioned. It\u2019s still some people afraid of COVID \u2014 maybe they\u2019re living with someone who\u2019s vulnerable. It\u2019s also schools are closed, and having schools be open again will free up a lot of caretakers. I think unemployment benefits, too. You would expect a significant \u2014 a really strong set of jobs numbers coming up, beginning in the next month.\u201d<\/span><\/p>\n<p><span>\u201cI guess when you pay people not to work, you shouldn\u2019t be surprised when you don\u2019t have workers,\u201d Jordan quipped in response.<\/span><\/p>\n<p><i><span>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <\/span><\/i><a href=\"https:\/\/www.dailywire.com\/subscribe\"><i><span>member<\/span><\/i><\/a><i><span>.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In its semiannual report to Congress, the Federal Reserve pointed to enhanced federal unemployment insurance as a factor restricting economic growth.Despite a return to normalcy in the United States following &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2314411,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-79159117.jpg?w=1200&h=800&ixlib=react-9.0.3","fifu_image_alt":"Fed Report To Congress Says Enhanced Federal Unemployment Handouts Are Restricting Growth","footnotes":""},"categories":[],"tags":[],"class_list":["post-587875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-79159117.jpg?w=1200&h=800&ixlib=react-9.0.3","fifu_image_alt":"Fed Report To Congress Says Enhanced Federal Unemployment Handouts Are Restricting Growth","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/587875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=587875"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/587875\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2314411"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=587875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=587875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=587875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}