Peach Tree Times

States that plan an early end to giving unemployed residents an extra $300 in federal Unemployment Insurance have experienced an increase in online job searches, providing some evidence the funds incentivized staying jobless.

The states that have decided to stop the federal funding before its scheduled end in September want unemployed residents to seek out the jobs many business owners say have been difficult to fill, putting many of them in danger of closing because they can't hire enough employees.

"It is, of course, still unclear how this temporary boost in search activity will affect hiring or wages. And the premature end of these benefits in June and July could well have a different effect on search activity, hiring, and wages than these announcements in May did," the Indeed Hiring Lab said.

As reported by CNBC, online job searches jumped up by 5% in the two dozen states that have announced that they will end the extra $300 in Federal Unemployment Insurance early. The author of the study which discovered the 5% increase noted that the jump was "temporary" However, it provides some evidence to critics who say that the extra UI benefits have been incentivizing people to stay home and avoid finding a job.

"Our job is not to provide wage replacement for individuals, but to offer career opportunities for Georgians to support their families and better their lives for years to come. Temporary financial support has served its short-term purpose, but providing training opportunities, increased certification and access to increased education provides long-term solutions," Georgia Labor Commissioner Mark Butler said.

Georgia Gov. Brian Kemp announced the state will be opting out of the extra unemployment benefits, effective on June 26. Gov. Kemp said that the extra benefits had served their temporary purpose, but now Georgia must reorient itself to encourage folks to get back to work.

A recent poll, published by the Foundation for Government Accountability, found that 73% of business owners surveyed said that have had difficulty hiring people in the past few months, with 59% saying it has been very difficult. A whopping 70% of respondents said there was greater than a 50-50 chance that their business would have to close within the next year due to an inability to hire enough employees.

The poll also indicated that 65% of business owners believed that the extra $300 in federal UI has been making it more difficult for them to hire new workers.