Governor Edwards agreed to withdraw Louisiana from the federally boosted unemployment program early in exchange for a small boost in state benefits starting next year. This agreement came via legislation he signed Wednesday evening that will result in state unemployment benefits going up 28 dollars a week starting next year on the condition that Louisiana ceases accepting $300 a week federally boosted unemployment assistance by July 31st.
The business community celebrated the news. National Federation of Independent Business State Director Dawn McVea said they believe the benefits have resulted in fewer people wanting to work and taking those benefits away will push more people into the workforce.
“Our small business owners the past about four months have been reporting at about 45% average that they cannot find qualified workers, they can’t get workers through the door,” said McVea who added that having fewer workers collecting unemployment will allow the state to rebuild the unemployment trust fund faster. The fund went bankrupt as a result of COVID and the state had to borrow money to keep benefits going out, but will be able to repay that loan as a result of American Rescue Act funding.
Governor Edwards will be the first Democratic governor to withdraw from the program early. For months the business community has called for an end to the federal benefits and McVae said it is disappointing that it took this long.
“We are the last in the southeast region to do this and we think that that is unfortunate but the fact of the matter is that the Governor has to give the federal government about a 30-day notice on this issue anyway,” said McVea.
Opponents of the decision say there are still many sectors, such as tourism, that have not come close to returning to full strength. They also argue if a business is having trouble hiring it is because they offer low pay.
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