Carney: There's Plenty of Demand for Workers But Enhanced Unemployment Benefits Are Holding Back Supply

Carney: There's Plenty of Demand for Workers But Enhanced Unemployment Benefits Are Holding Back Supply


The May jobs data released Friday bolster the arguments of those who say that the economy is suffering from an artificially constrained labor supply due to enhanced unemployment benefits.

When the pandemic struck, the federal government began chipping in an extra $600 per week to bolster the incomes of Americans thrown out of work by the pandemic and lockdowns. This was on top of regular unemployment benefits, and as a result many workers actually received more in benefits than they did on the job.

The bonus has since come down to $300 but even at the reduced level somewhere between 40 and 50 percent of those on unemployment receive more than they would on the job. This essentially puts them out of reach of employers. Even workers who earn less than what a job offers may decide that working full-time is not worth it if they can make

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