Eight U.S. Reps urge Whitmer to drop enhanced unemployment benefits

(The Center Square) – Eight U.S. Republican Representatives asked Gov. Gretchen Whitmer to end the state’s $300/week enhanced federal supplemental unemployment benefits. Michigan had been implementing the program in response to the COVID-19 pandemic and the ensuing widespread layoffs.

In some of the 16 states that have chosen to opt-out of these enhanced benefits, unemployment rates have dropped near pre-pandemic levels, a National Law Review report said.

On May 10, 2021, 55% of Michiganders 16 and older had received a first dose of the COVID-19 vaccine, which unlocks in-person working statewide starting May 24.

“Ending Michigan’s participation in the enhanced federal unemployment benefits, like 16 other states have already done, will ensure a faster economic recovery for our state & struggling businesses/employers,” U.S. Rep. Peter Meijer tweeted.

COVID-19 numbers have steadily dropped. As of Monday, the Detroit News reported last week’s cases and case positivity rate at a 9-week low, while COVID-19 hospitalizations hit an 8-week low.

“Michigan has taken strong steps to combat the pandemic, but continued participation in the emergency federal increase in unemployment compensation benefits is exacerbating the labor supply shortage and hindering our economic recovery,” the letter reads.

The request follows local businesses struggling to compete with government paying Michiganders not to work, even as the state recovers from COVID-19. Michigan will reinstate work search requirements on May 30.

Whitmer’s office hasn’t responded to a request for comment. However, the Labor and Economic Opportunity Department said 816,480 Michiganders are receiving unemployment benefits. Since March 15, 2020, Michigan has paid out $34.5 billion in unemployment benefits.

The letter was signed by Reps. Jack Bergman, Bill Huizenga, Meijer, John Moolenaar, Fred Upton, Tim Walberg, and Lisa McClain.

“We all agree that the federal supplemental benefits served a purpose when businesses were forced to close in response to the public health crisis, but now, as the seven-day average of positive cases continues a three-week decline and hospitalization rates remain low, businesses both can and want to reopen, and employees can and should return to work,” the letter said. “Unfortunately, these benefits remain so robust that employees are more incentivized to stay home and collect unemployment than to go back to work.”

Michigan’s seasonally adjusted unemployment rate dropped during February to 5.2%, partially driven by people leaving the labor force altogether, meaning they aren’t even searching for work.

It’s a partial recovery. Compared to April 2020, when roughly 2.2 million Michiganders lost their jobs and unemployment hit 20%, unemployment has fallen by 78%, state officials said in April.

The state’s number of unemployed dropped in March for the third consecutive month, but overall, Michigan’s labor force declined by 4.4% over the year, outpacing a nationwide reduction of -1.3%, which either means people in Michigan are returning to work or dropping out of the labor force.

Pew Research found from February 2020 to February 2021, a net 2.4 million women and 1.8 million men left the labor force nationwide.

Michigan Chamber President & CEO Rich Studley told The Center Square in a phone interview his members have job opportunities statewide, which offer between $12 and $19 per hour, plus a signing bonus, that are vacant because the state and federal government are paying Michiganders more not to work.

“Are you serious about reopening Michigan and helping Michiganders get back to work or do you want as many Michiganders as possible to stay home and be dependent on the state and federal government?” Studley asked of Whitmer’s policy.

Studley said he agreed with extended unemployment benefits when the COVID-19 pandemic slammed Michigan in March of 2020, but not now as case numbers drop across the board.

Texas and 18 other states have already ended the enhanced unemployment benefits program.

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