UNEMPLOYMENT
announced in May they would no longer participate in a federal program offering $300 weekly unemployment benefits. The program, meant to supplement the Florida’s maximum $275 weekly benefits, was set to run out in September. Instead, it ended in late June, 10 weeks early. (Unlike some states, Florida kept three other federal unemployment programs, including one for gig workers, until they expired on Labor Day.)
Business groups — such as the Florida Chamber of Commerce and Associated Industries of Florida, which are major campaign donors to DeSantis and state lawmakers — advocated for the governor’s “Return to Work” initiative, saying that ending benefits would get Floridians back to the workplace.
DeSantis’ spokesperson said the initiative was a success, although she pointed to the recent federal jobs report that showed just 194,000 jobs were added nationally in September.
“President [Joe] Biden’s promised labor market recovery has not materialized,” spokesperson Christina Pushaw said in a statement last week. “Despite dismal national trends,
Gov. DeSantis’ policies continue to support job growth in Florida, and our economy is thriving.”
Economists in Florida say there’s too little data to say whether ending the benefits caused people to go back to work.
“I think it’s too early to tell,” said Jerry Parrish, chief economist for the Florida Chamber of Commerce. “Another three to four months of data will give us a much better look at this.”
National studies have shown that ending the benefits early had little effect. A Wall Street Journal analysis found the states that ended benefits early had about the same job growth as those that didn’t. Another study, using anonymized bank data from about 18,000 low-income workers, found that ending the benefits increased employment.
As proof of Florida’s success, the state’s Department of Economic Opportunity points to the labor force growing by 373,000 people since
May. The labor force is the number of people working or looking for work.
“Transitioning away from these benefits helped meet the demands of
small and large businesses who are seeking to expand their workforce,” spokesperson Emilie Oglesby said in a statement.
Parrish agreed that it’s a positive sign. Other economists who spoke to the Herald/Times were not convinced by that statistic, however.
“To say that that number is driven entirely by the initiative, I think is really overstating it,” said Mike Snipes, an economist at the University of South Florida. “What if a large portion of that is new graduates? Or people
coming from out of state?”
Murray, of Florida International University, said the state’s data didn’t indicate there were large numbers of people going back to work because benefits ended.
Between July and August, the two months after the benefits ended, Florida gained about 96,000 jobs, according to Department of Economic Opportunity data. But about
70% of those jobs came from local governments hiring educators, according to the data.
“These aren’t people
who were collecting a $300 check, for the most part,” Murray said.
There are likely many reasons why Floridians haven’t returned to work. Baker, the state’s chief economist, told lawmakers Thursday that some workers nearing retirement retired early during the pandemic. Some are waiting to feel safe at work. Others can’t afford to work and send their children to childcare.
And others are struggling to find work.
That includes Gia Cuccaro, 52, a 30-year paralegal who lost her job because of the pandemic. She went back to work in August last year, contracted the coronavirus, and wasn’t called back for work.
She has since been unable to find work. She said she has been repeatedly told she’s “overqualified,” and she suspects she’s being discriminated against because of her age.
“Some might say, ‘Go work at McDonald’s,’ ” she said. “Guess what? I put an application in at McDonald’s. They didn’t hire me.”
Cuccaro was one of several Floridians who sued DeSantis and the state for ending the $300 weekly benefits, claiming he broke state law. A judge in Tallahassee rejected the argument, saying the decision belonged to DeSantis.
Ending the benefits early deprived her and other Floridians of 10 weeks of benefits, or $3,000. She has gone from making $60,000 per year before the pandemic to shopping at Dollar Tree and selling plasma to get by.
“I sit with a needle in my arm for 50 minutes twice a week for $60 [each],” she said. “That’s what I do for money right now, because I have no choice.”