3 ms·

For context, it's helpful to consider the size of the average unemployment check in each state: https://www.cnbc.com/2020/07/23/average-unemployment-insurance-p

For context, it's helpful to consider the size of the average unemployment check in each state: https://www.cnbc.com/2020/07/23/average-unemployment-insurance-payment-in-each-us-state.html https://www.cnbc.com/2020/07/23/average-unemployment-insuran... Federal benefits currently add $300/week to this amount, which roughly doubles the payments. The recent tax changes make this effectively untaxed income for most. Now obviously $2.5K to $3K per month (including federal +$300/week) isn't a luxurious income, but that number is at or slightly above the median income in the United States. To understand the issue: If someone has a choice between working 40 hours per week plus commutes to earn the median income or working 0 hours per work with no commutes, it can be difficult to convince some people to get that job. Even a job paying more than unemployment benefits can be unattractive. If someone can collect the equivalent of $40K/year tax-free from unemployment by doing 0 work and they're offered a job that pays $60K/year (taxable) for working 40hrs/week, they only stand to gain about $15-20K (after taxes) by taking the job and leaving unemployment. That's the crux of the issue: Even if people may be able to earn more by returning to work, the marginal increase in their payments might not be enough to incentivize them to work 40 hours per week. If you're making $100K/year and have a career path and a mortgage and car payments and bills, these small unemployment payments may sound too paltry to even consider. However, for young people living frugally, it can be tempting to earn the median US income for doing 0 work, having all the free time in the world. Candidly, this is exactly what some young people I know are doing. Although some of them were just caught trying to check in to unemployment benefits while on a roadtrip out of state. Apparently unemployment portals do GeoIP checks now in an attempt to catch things like this.

mywittyname 5y ago
A job paying more than unemployment benefits will be there tomorrow. Whereas, with unemployment, there's the risk of getting a job offer which ends your benefits. The thing about unemployment agencies is that their job is to find jobs for unemployed. And the longer a person is on unemployment, the less picky they are allowed to be as to which jobs they accept. People don't just hang around doing nothing while on UI. They are applying and interviewing for jobs, and the state unemployment office has a job placement department which will place any abled body person pretty quickly.
- PragmaticPulp 5y ago
  Your state's unemployment sounds very different than the norm. Most unemployment offices rely on employee self-reporting about any job offers. There isn't a mechanism by which jobs are offered and declining them ends your benefits.

mywittyname 5y ago

A job paying more than unemployment benefits will be there tomorrow. Whereas, with unemployment, there's the risk of getting a job offer which ends your benefits. The thing about unemployment agencies is that their job is to find jobs for unemployed. And the longer a person is on unemployment, the less picky they are allowed to be as to which jobs they accept. People don't just hang around doing nothing while on UI. They are applying and interviewing for jobs, and the state unemployment office has a job placement department which will place any abled body person pretty quickly.

PragmaticPulp 5y ago
Your state's unemployment sounds very different than the norm. Most unemployment offices rely on employee self-reporting about any job offers. There isn't a mechanism by which jobs are offered and declining them ends your benefits.