Business leaders and Republican governors raised an insistence cry earlier this year: Stop paying the $300-per-week federal supplement to unemployed Americans. They argued that many people would then leave the job market and go after the jobs that were available to them.

Three months after the federal payment was ended by half of the states, there has been no significant job search.

The state that stopped the $300 check has seen a decrease in the workforce, which is the number of people looking for work or who have a job. Nationally, federal aid ended Sept. 6 along with two programs for jobless assistance that helped gig workers and long-term unemployed. However, America’s total workforce actually decreased that month.

Fiona Greig (managing director, JPMorgan Chase Institute), stated that policymakers had placed too much hope on ending unemployment insurance to boost the labor market. She used JPMorgan bank accounts data to analyze the issue. “The work disincentive effect was clearly low.”

The mystery surrounding the labor market has deepened as a result of prolonged labor shortages. Companies are keen to hire workers and have created a record number of jobs. Unemployment remains elevated. The economy has 5 million fewer jobs now than before the pandemic. However, August and September saw a slowing in job growth.

According to Friday’s data, the Associated Press analysis of state-by–state data found that the workforces of the 25 states that kept the $300 payment grew slightly from May through September than those in the 25 that stopped the payment. This was compared with the data that was released Friday. Many of those who were unemployed were able to receive more benefits from the $300-a-week federal payment, in addition to regular state jobless assistance, than they did at their previous jobs.

Arindrajit Dube (an economist at University of Massachusetts Amherst) and others found that states that removed the $300 federal payment saw an increase in the number of jobless. It also showed that the payment didn’t attract more people to search for work.

Economists identify a variety of factors that could prevent millions of ex-recipients of federal jobless assistance from returning to work. For example, many Americans working in public-facing positions still fear COVID-19. Some families do not have child care.

Others, such as Rachel Montgomery from Anderson, Indiana have learned to treasure the chance to spend more time with family and to feel that they can make ends meet financially. Montgomery, a 37 year-old mother, stated that she is now more selective about the places she will work after losing her catering job last year. Montgomery said that she hasn’t lost her $300-per-week federal payment. For a few weeks, she’ll continue to receive her regular state unemployment aid.

She said, “Once you’ve stayed at home with your children and family like that, who wants to go back to physical work?” “As I look and look, I have decided that I won’t sacrifice my flexibility or pay to work remotely when I know what I can do. It’s taking longer for these types of jobs to become available.

The pandemic seems to have led to a revaluation of priorities. Some people decided to spend more time with their families, while others insisted on working remotely or having more flexibility.

Many former recipients, particularly those who are older and more wealthy, have chosen to retire earlier than planned. Fed officials estimate that 2 million more Americans have retired from their homes and stocks since the pandemic.

After receiving three stimulus checks over 18 months and federal jobless assistance in certain cases, many households now have greater cash reserves than before the pandemic. Greig and JPMorgan’s colleagues found that the median household bank balance has increased 70% in the quarter of the most vulnerable households since COVID. This shows that people are taking the time to think about their options rather than jumping back on the job market.

Graham Berryman, a 44 year-old Springfield resident, has been living off his savings since June when Missouri stopped paying the federal jobless payment of $300 per week. In the past, he has worked temporarily reviewing documents for law firms. He hasn’t been able to find anything permanent since August 2020.

Berryman stated, “I’m not lazy.” “I am unemployed. This does not necessarily mean that I am lazy. “Just because someone can’t find work that suits their needs doesn’t make them trash.

Some couples also decide that one income is enough, even temporarily, to get by.

Sarah Hamby, Kokomo, Indiana lost her $300-a week federal payment after Gov. Eric Holcomb (a Republican) ended this benefit early. Hamby’s 65-year-old husband has continued to work an overnight shift at a printing presse throughout the pandemic. He may be tempted to retire earlier than he had planned.

If she isn’t able to find work soon, Hamby, 51 years old, might do it herself. Many of the jobs she held for many decades in auto factories are now gone. She doesn’t have the skills required to fill the positions she sees now. She isn’t looking for any job.

She said, “I feel too old to go to school or get trained to do any other work.” “I’m not interested in working at a desk, in an office like a lot of people are being forced to. Now I have to choose between a line of work that is too low-paying or too demanding, or simply not working.

The national proportion of women either looking for work or working in September fell for the second consecutive month. This is evidence that many parents, mostly mothers, are still unable manage their childcare duties and cannot return to work. The number of childcare providers has dropped, which has reduced the amount of care available. While schools are now open for in-person learning, many closures due to COVID epidemics have been disruptive for working parents.

To further exacerbate the labor shortage, record numbers of people quit their jobs in august, some motivated by better pay elsewhere.

Missouri: A group of Missouri businesses was still unhappy with labor shortages three months after the state stopped the $300-a week federal jobless checks. They paid for billboards in Springfield stating “Get off your butt!” and “Get. To. To.

Since the end of emergency benefits, there has been no growth in the state’s workforce.

Brad Parke, the general manager of Greek Corner Screen Printing and Embroidery who paid for the billboards, said that “we don’t know where they are.” They are not at work, evidently. Evidently, they are at home.

Richard von Glahn (policy director at Missouri Jobs With Justice), an advocacy group, said that many people who are not in the job market want more flexibility or benefits.

Von Glahn stated that “people don’t want” to return to the pre-pandemic employment market. “Employers play a key role in creating the right work environment and providing workers with the security they require.”

Wyoming’s workforce is smaller than it was when the state stopped providing emergency jobless assistance. According to Wenlin Liu (chief economist at the state Economic Analysis Division), fear of contracting COVID-19 may have discouraged some people seeking employment.

He noted that Wyoming has one the lowest vaccination rates in America and has been a COVID-19 hotspot ever since the summer. Liu suggested that some parents may have to send their children home because of the rising number of infections.

Landon Brown, a Republican state representative, supported the reduction in federal unemployment aid.

Brown stated that Wyoming “isn’t interested in continuing to permit the federal government keep people out of jobs, paying them as little to stay at home in certain cases as it does to go get a job.”

Mississippi stopped providing emergency jobless assistance on June 12. It had less people working in August than it did in May. A job fair was held in Tupelo last week. It attracted 60 companies including a recruiter for VT Halter Marine (a shipbuilder 300 miles south). The event attracted between 150 and 200 job seekers, which is less than many businesses expected.

Adam Todd organized the job fair for Mississippi Department of Employment Security. This agency helps people find work and distributes unemployment benefits. Todd stated that the agency had received calls of desperation from businesses seeking to hire workers during the pandemic.

Todd stated, “We are at a different time in time than we have ever been in very long time.” “The job seeker is in control of the situation right now.”