Beshear: Getting Kentuckians back to work complicated

(The Center Square) – Kentucky Gov. Andy Beshear said Thursday he would be willing to entertain ending the state’s involvement in the federal subsidy for unemployed workers, but the issue of getting more Kentuckians back to work is more complicated than just the $300 extra in benefits unemployment recipients receive.

Republicans and industry groups have called on the Democratic governor to take that step after some businesses have claimed they are having a hard time finding workers they need for jobs opening up as the state has lifted the mask and social distancing regulations.

At a press conference Thursday, Beshear told reporters he would not set a date for when the pandemic subsidy participation would end. Instead, he called on business leaders to come together to find a solution.

“Let’s talk,” he said. “Let’s create a smart incentive program. Let’s get you the workers you need. I want to get Kentucky back to work. We can’t have everybody still on PUA at the end of September, but let’s admit a complicated problem is a complicated problem.”

A recent study by the Kentucky Chamber of Commerce indicates the difference between the state’s labor participation rate was 4.8 percentage points lower than the nation’s rate in March.

A year earlier, the margin was 3.9 percentage points.

The Kentucky Chamber also referenced a U.S. Chamber poll of unemployed workers from earlier this month that found 49% of workers who lost their job during the pandemic were either not active at all or not very active in looking for a new job.

However, of those not actively engaged in a job search, 16% said the enhanced unemployment benefits made it “not worth looking” for a new job. Higher percentages of individuals said that childcare (24%), lack of job availability in their industry (28%) and lingering COVID concerns (26%) were concerns.

Beshear said the pandemic benefit pumps in $34 million to the state each week, with that money going to buy groceries. That’s an important benefit for families, especially for those who have held off looking for work because of childcare issues.

“We don’t want to lose those dollars that are helping them and are flowing through the economy,” the governor said. “So our aim is to try to thread that needle and do it right. Not red or blue, just right.”

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