Florida is pulling the plug on the $300-per-week supplemental unemployment insurance benefit the federal government has provided to laid-off workers during the coronavirus pandemic, the state’s Department of Economic Opportunity (DEO) said.
The state’s decision, which takes effect June 26, was welcomed by business organizations and panned by critics who say Florida residents deserve more time to successfully transition back into the workforce.
The state agency defended its position, arguing that Florida labor statistics indicate private-sector employment rose by 18,800 jobs, with more than 460,000 jobs now posted online. A number of other federal benefit programs for jobless residents will continue, according to the DEO.
The state’s economy had bounced back significantly from the depths of the pandemic, and Florida’s economic conditions are now among the best in the nation, DEO Secretary Dane Eagle said.
“Florida’s employers are also seeing employment growth, as more Floridians, including some who completely left the workforce, are now eagerly re-entering the workforce,” Eagle said in a prepared statement. “Transitioning away from this benefit will help meet the demands of small and large businesses who are ready to hire and expand their workforce.”
But Andrew Stettner, a senior fellow at the Washington-based Century Foundation, said Florida’s move would hurt still-struggling workers.
“As of the latest data, Florida is still 766,000 jobs shy of a year ago,” Stettner said in an email to the Record. “It's laughable to think that everyone will be able to find a job within 30 days. Because of Gov. (Ron) Desantis' decision, thousands of Floridians will be thrown into poverty because Florida's base unemployment benefits are so stingy. This will inevitably lead to food insecurity and stress that is literally toxic to the children's development.”
The state’s UI system has also been the subject of multiple lawsuits over the past year due to delays and claims overloads.
A better move would have been to provide assistance and support to workers seeking more stable, long-term employment situations, he said.
“To the extent that jobs are going unfilled, it’s because of the lack of child care, slowing immigration and lingering fears of COVID-19 infection,” Stettner said. “Blaming the unemployed for unemployment is the classic example of a bully blaming the victim.”
Bill Herrle, the NFIB state executive director in Florida, countered that even as small businesses increase wages nationwide, the firms still have openings they can’t fill. Ending the supplemental pandemic UI benefit makes sense, Herrle said.
“Last spring, businesses reduced hours and limited services because of social distancing and other COVID-19 precautions,” he said in a prepared statement. “This spring, they’re doing it because they can’t find enough workers.”