Ohio ends participation in federal unemployment benefits program

(The Center Square) – Unemployed Ohioans can no longer count on extra money from the federal government as the state’s businesses continue struggling to find employees to fill open jobs.

Gov. Mike DeWine has announced the state will stop participating in the federal government’s supplemental unemployment benefits program, which adds an extra $300 in weekly compensation. The state will end the program June 26.

“When the program was put in place, it was a lifeline for many Americans at a time when the only weapon we had in fighting the virus was through social distancing, masking and sanitization,” DeWine said Thursday. “This is no longer the case as we now have an abundant supply of vaccines.”

DeWine announced earlier this week the state’s work-search requirement will be reinstated for new unemployment claims, beginning the week of May 23.

The moves received wide support from political leaders and business groups, which have described for months the challenges businesses face from a lack of employees as the easing of restrictions have led to more customers.

The National Federation of Independent Business said 44% of small business owners nationwide reported having job openings that cannot be filled, according to a recent survey.

“Finding qualified employees remains the biggest challenge for small businesses, and it is slowing economic growth,” said Roger Geiger, executive director of NFIB in Ohio. “Ohio’s economy is growing and growing faster than our neighboring states. We need a robust workforce to maintain our positive trajectory. The time for additional unemployment payments is over. We appreciate Ohio Governor Mike DeWine for recognizing that now is the time to strongly encourage everyone to work.”

The Buckeye Institute, a Columbus-based think tank that has been calling for the return of work-search requirements and the end of extra benefits, believes DeWine’s decisions are another sign the state economy is growing.

“Withdrawing from this program – which The Buckeye Institute recommended – is another sign that Ohio is recovering from the pandemic and it will encourage workers to return to the labor market and fill tens of thousands of job vacancies we have across the state,” the think tank said.

House Speaker Bob Cupp, R-Lima, said circumstances have made it important for the state to leave the federal program.

“Whatever justification there may have been for the extra unemployment compensation payment at the beginning of the pandemic, now the circumstances are vastly different,” Cupp said. “Businesses are hiring, but many are stymied by lack of applicants. I’ve heard from employers in my district and all over the state about the difficulty of funding individuals to hire. Several House members have previously expressed interest in legislative options for addressing the issue.”

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