The past pandemic-induced lockdown curtailed jobs and forced businesses to shut down. Even now, businesses are closing from the effects of the pandemic. State unemployment programs across the country have seen tremendous spikes in unemployment benefits claims.
However, Florida maintains some of the lowest unemployment benefits in the nation. Though this notion perturbs some, it will help get people back to work quicker.
With millions of Americans who lost their jobs, and many whose businesses suffered, unemployment benefits are a crucial step to help people to meet their daily basic needs until starting a new job.
The state of Florida has a max of $275 per week. In addition, it has narrowed eligibility for benefits. A laid-off worker must fill out extensive forms and verify weekly online job searches, meaning you need to prove that you’re searching for jobs. The government has been criticized by many citizens and workers, claiming the state has made it more difficult for people to survive during these dire times.
The CARES Act provided $600 per week in unemployment benefits, which did more harm than good. This amount discouraged people from returning to work. Some people chose not to search for work because of this substantial amount of money coming every week. After all, who doesn’t like free money guaranteed for months?
Many businesses could not find employees because of this booster of $600. Some businesses find this boost in unemployment benefits as “a disincentive for workers who can make more money by remaining unemployed.”
"We usually have many, many people coming in here just looking for work," said Deborah Eagle, Eagle Landscaping & Supply Co. in Southfield. "But not this year because of what's going on ... I think there was only one person."
This caused many businesses to close during the height of the pandemic and many of them have not been able to come back. This did irreparable harm to the economy. How do we expect to run the economy smoothly when people are paid for being inactive and not searching for jobs?
Florida’s unemployment benefits program has been renamed Reemployment Assistance, which aims to bring back people to work rather than enjoying layoff benefits. The taxes that the employers pay to fund the benefits in Florida are now the lowest in the country.
“That’s where I think that Florida’s been very innovative,” said Walter Carpenter, Orlando commercial real estate appraiser. The concentration is on reemployment or training sessions for people.”
By maintaining some of the lowest benefits in the nation, Florida is helping its businesses and the workers searching for jobs while reducing the cost to the government. Therefore, low unemployment benefits will reduce layoffs and help the economy run naturally.