Economic analyst: Boost in federal unemployment could deter people from returning to work

President Joe Biden's $1.9 stimulus plan includes a proposal to extend federal unemployment assistance until September, but some say that may deter people from going back to work.

News 12 Staff

Feb 4, 2021, 11:18 PM

Updated 1,261 days ago

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President Joe Biden's $1.9 stimulus plan includes a proposal to extend federal unemployment assistance until September, but some say that may deter people from going back to work.
Unemployment benefits will also increase weekly from $300 to $400. That payment is in addition to whatever the state gives a person collecting unemployment.
"Paying more money to employees with unemployment than they received while working will probably keep those employees home and on unemployment rather than going back," says economic analyst Marty Cantor.
When the program first began, many restaurants had trouble keeping workers because they were almost making as much on unemployment.
Joe Bruzzese, of Cafe Dolce Vita, has owned restaurants on Long Island for more than 40 years. He says the past year has been by far the hardest.
"If they keep giving free money, I think that's going to be a concern because people are not going to come back to work," says Bruzzese.
While Bruzzese agrees that people need the money to survive, he says the end goal should be putting people back to work.
The stimulus plan backed by Republicans keeps the federal unemployment assistance at $300 a week and extends it until June. The Democrats' plan extends it to September.


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