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Which U.S. States Are Ending Extended Unemployment Benefits Early?

By May 12, 2021 Uncategorized
Jobs

UPDATE 6/14: Added Nebraska (6/19) and Maryland (7/3) to the list. Total number states opting out of Federal Unemployment Benefits early is now at 25.

UPDATE 6/3: New Hampshire and North Dakota have announced they are opting out of the program early, on 6/29 and 6/26, respectively. This brings the total count of states opting out to date to 23. The list below has been updated to reflect this change

UPDATE 5/28: 21 have now announced that they are opting out of the program early. The list below has been updated with the 10 new states since this was first published a week ago.

As of today, 11 states have announced an early end to the $300 extended unemployment benefits program in June or July: Alabama, Arkansas, Idaho, Iowa, Mississippi, Missouri, Montana, North Dakota, South Carolina, Tennessee, Utah and Wyoming. Government officials in Georgia and Illinois are also discussing an early end to the program in their states. 

States Ending Extended Unemployment Benefits, By Date:

  • June 12: Iowa, Mississippi, Missouri, Alaska
  • June 17: Alabama
  • June 19: Idaho, North Dakota, Wyoming, Indiana, West Virginia, New Hampshire, Nebraska
  • June 26: Arkansas, Utah, South Dakota, Texas, Oklahoma, Ohio, Georgia, North Dakota
  • June 27: Montana
  • June 30: South Carolina
  • July 3: Tennessee, Maryland
  • July 10: Arizona

Why Are Extended Unemployment Benefits Ending?
The primary reason given by these states for truncating the extended benefits is a shortage of labor for businesses that are reopening. According to the Department of Labor, there are more than 8 million unfilled jobs as businesses are working to restart the economy after the pandemic-related shutdowns. The Department’s April Jobs Report surprised almost everyone when the forecasted 1-million-person growth in employment only came in at an underwhelming 266,000. 

There has been dissent against these moves, as not all sectors of the economy are ramping up at the same pace. People also still have concerns about the safety of returning to business as usual, or have issues regarding child care and homecare for sick or elderly relatives. 

When Will Extended Unemployment Benefits End In Other States?
While these concerns are understandable, the truth of the matter is that the program as a whole is already set to expire in September of this year, and the likelihood of the federal government extending it further is practically nonexistent. While an early end certainly caught many off guard, it was already in sight. No matter what state you’re in, the extended benefits and stimulus payments are going to expire in a matter of weeks. 

What Will Happen To Jobs When Extended Unemployment Benefits End?
One important thing to note with regards to jobs reports is that employment numbers frequently fluctuate against projections from month to month. While the April Jobs Report was disheartening to many who were hoping for better news, it is entirely possible this month could actually see higher-than-forecasted gains in employment. 

The only thing that can be said for certain at this particular moment is that there are plenty of jobs to be had, and extended unemployment benefits are going away very soon. Whether those benefits are prompting people to stay home for purely financial reasons or they are merely allowing people the freedom to put other concerns before their own employment, when they’re gone, there is surely going to be a flood of people returning to the workforce. 

There might be plenty of jobs today, but with 7-8 million open jobs and 10.1 million Americans currently unemployed, the top jobs are going to go fast. 

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