Decision to cut $300 federal unemployment benefits in GOP states is 'tied to politics, not economics [View all]

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JPMorgan says

The move to cut federal unemployment benefits in red states is "tied to politics, not economics," according to a Tuesday note by the economic research team at JPMorgan.

The note refers to two dozen GOP-run states deciding to end their federal unemployment benefits early, leaving 4 million workers set to lose an extra $300 per week months before the law dictates.

The team said the programs are likely contributing to the limited amount of workers currently searching for new jobs. But it noted that neither unemployment rates, earnings growth, nor participation levels are driving states to halt jobless aid early. "It therefore looks like politics, rather than economics, is driving early decisions to end these programs," they wrote.

JPMorgan pointed out that many GOP states did not have more job openings than jobless people, which economists call a tight labor market.

https://www.msn.com/en-us/money/markets/the-decision-to-cut-dollar300-federal-unemployment-benefits-in-gop-states-is-tied-to-politics-not-economics-jpmorgan-says/ar-AAKpYya