More states offer one-time cash bonus to hire workers

WHAT YOU NEED TO KNOW:

• At least 23 states in the US have stopped the federal funding for unemployment benefits and offered cash incentives to boost people in getting jobs.
• At least four states ━ Arizona, Montano, New Hampshire and Oklahoma ━ will realign the federal money to provide cash benefits for eligible job applicants.
• Republican leaders are blaming the federal unemployment cash benefits for low employment rates.

As part of new initiatives to entice workers to apply for jobs, GOP-led states would provide a one-time cash bonus as companies struggle hiring essential workforce.

States of Arizona, Montana, New Hampshire and Oklahoma will grant a $2,000 signing incentive for applicants who will accept the offered jobs. The latest scheme is the counterproductive offer of the states against the federal unemployment program that provides additional financial aid to unemployed Americans.

“In Arizona, we’re going to use federal money to encourage people to work instead of paying people not to work,” Gov. Doug Ducey said last week.

The state will avail the remaining finances in creating a return-to-work cash program. Full-time employees will get a one time-bonus of $2,000 while those who will work part-time will get $1,000. Applicants should earn an hourly rate of $25 or lower starting May 1.

In Montana, state residents will be given $1,200 back-to-work incentives. Eligible employers will receive the money after one month of being employed. The state will end the unemployment relief aid on June 27.

In New Hampshire, new employees who will work for two months will get $1,000, while part timers could gain around $500. The state government will halt unemployment incentives on June 19. Eligible individuals are those earning $25 per hour or less.

Meanwhile in Oklahoma, Gov.Kevin Stitt said that unemployment benefits will remain until a month from now. For people who will apply for new jobs, there awaits a $1,200 return-to-work bonus using the remaining federal budget. Newly-hired employees should work for at least six weeks before they can receive the incentive.

The four aforementioned states were among the 23 states that have halted the federal funding for unemployed citizens. In accordance with the law, the federal jobless aid program is set to end after September 6 this year.

The move came following an April payroll report by the Labor Department, showing that the country’s economy only added about 266,000 jobs, significantly lower than the one million prediction made by Refinitiv economists. 

Republican House members were attributing the low employment rates because of the existing unemployment benefits. Experts, however, also considered other factors such as the lack of child care and worries over possible infection from the coronavirus.

Unemployed Americans are receiving around $300 state-funding on a weekly basis, on top of the $300 aid coming from the federal government.

Source: Fox Business