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Twao states already canceled federal supplemental unemployment benefits, as those incentivize not working and create labor shortage

Posted on | May 7, 2021 | No Comments

South Carolina becomes the second state to cancel federal unemployment benefits

Denitsa Tsekova

·Reporter

South Carolina plans to stop some of its federally-funded unemployment benefits to address “ongoing workforce shortages,” according to the South Carolina governor’s office, leaving many out-of-work residents without any support at all.

The state joins Montana, which announced a similar move this week.

“This labor shortage is being created in large part by the supplemental unemployment payments that the federal government provides claimants on top of their state unemployment benefits,” Gov. Henry McMaster said in a statement on Thursday. “What was intended to be a short-term financial assistance for the vulnerable and displaced during the height of the pandemic has turned into a dangerous federal entitlement, incentivizing and paying workers to stay at home rather than encouraging them to return to the workplace.”

Starting June 30, jobless South Carolinians will lose the extra $300 in weekly unemployment benefits but maintain their regular benefits. Contractors, gig workers, and others will also lose access to the Pandemic Unemployment Assistance (PUA) program, meaning those workers won’t get any benefits.

Montana plans to cancel those benefits and programs on June 27.

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