University of Michigan economist Gabe Ehrlich predicts Michigan will almost fully recover the 1 million-plus jobs lost during the pandemic by the end of next year but “high inflation is part of the price we’re paying for a fast recovery.”
Unemployment
Michigan Advance’s Peter Ruark writes, “COVID-altered life in Michigan continues to reveal the inadequacy of many of our state’s social policies and safety net systems, and a new report from the Michigan League for Public Policy (MLPP) demonstrates how Michigan’s Unemployment Insurance policies are falling short in providing an adequate and effective safety net for unemployed workers. The Michigan Legislature must address these shortcomings rather than chip away at UI protections as it did last week.”
The Michigan House passed a bill Thursday that would eliminate the extra $300 in federal unemployment benefits for Michigan residents.
Peter Ruark of Human Capital argues that “businesses who perceive a labor shortage can do what businesses normally do in a market economy when they cannot find enough workers: Look at ways to make their jobs more attractive to workers, including investing in better wages and benefits.”
In Michigan, the seven Democrats in the U.S. House voted for and all seven Republicans voted against President Joe Biden’s $1.9 trillion pandemic aid package early Saturday, in a rush to both boost COVID-19 vaccine funding and get legislation to the president’s desk before unemployment benefits expire in mid-March. The package, dubbed the American Rescue Plan, passed 219-212.
The unemployment benefits of about 692,000 Michigan workers are in danger of being axed the day after Christmas if Congress does not act, the Michigan Unemployment Insurance Agency (UIA) warned this week.
In a marathon session, complete with ongoing negotiation between the GOP legislative leaders and Gov. Gretchen Whitmer, the state House and Senate on Wednesday finalized bills to address COVID-19 policies centering on unemployment benefits and business liability.
“A storm of skyrocketing unemployment paired with plummeting tax revenue have plunged the state budget into a multi-billion dollar deficit. State Budget Office Communications Director Kurt Weiss told The Center Square in an email that tax revenues for this fiscal year are projected to drop between $1 billion and $3 billion.”
Unemployment claims in Michigan are much higher than historical numbers as the fallout continues from efforts to control the coronavirus outbreak.
The U.S. Department of Labor released numbers Thursday morning detailing unemployment for each state for the week ending April 11. Michigan residents filed 219,320 initial claims that week, down 169,234 from the previous week’s 388,554 claims.
Data collected by the U.S. Department of Labor in Michigan from the week ending April 4 reveals one of the steepest unemployment increases in the nation.
More than 80,509 people filed for unemployment, bringing the total number of Michigan unemployed workers to 384,844.