As Congress debates whether to allocate further relief to shore up the economy, the unemployment rate has suddenly and unexpectedly fallen. Here’s how the new numbers are shaping the debate over how the government can keep the turnaround going
As Congress debates whether to allocate further relief to shore up the U.S. economy and get workers back on their feet, the unemployment rate has suddenly and unexpectedly fallen.
Republicans have raised concerns that the enhanced unemployment benefits could discourage people from returning to work, because in some cases they are making more than their original wages. Stephen Moore, a conservative economist and outside adviser to President Donald Trump, said Friday that the topline number of jobs being created could have been higher for May if the unemployment sweetener were not in place.
But others say the higher level of aid is bolstering consumer confidence and keeping demand closer to normal levels as businesses begin to reopen. Adam Ozimek, the chief economist at Upwork, a platform that connects businesses with freelancers, said Congress could consider a compromise by extending the unemployment insurance booster but combining it with something akin to a “return to work” benefit — meaning workers have access to aid both if they remain unemployed and if they head back to the office.
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