Gov. Tate Reeves is right: We have to get people back to work, or businesses and our overall economy will continue to suffer.
To address the growing problem of employers unable to fill jobs, Reeves said Mississippi will cease to be part of the enhanced federal unemployment payments as of June 12. This move will end the weekly $300 federal unemployment supplement going to unemployed workers on top of the state payments.
While this approach is becoming increasingly popular with other states, it is not the wisest path forward. Instead, Mississippi should follow the Montana model, which was announced last week.
Montana Gov. Greg Gianforte, a staunch conservative, declared his state would cease participation in the federal unemployment assistance plan, too. However, Gianforte and Montana are not just yanking the rug out from under unemployed workers. They are providing $1,200 incentives for people who were on unemployment as of May 4 and who get a job and keep it for 30 days.
This model not only helps push people toward the job market, it provides them with further assistance — equal to four weeks of the federal unemployment payments. Montana prevents people from collecting the incentive more than once, and anyone re-entering the unemployment pool would not qualify for the additional federal assistance since the state is ending its participation in the program.
The Montana plan addresses some realistic concerns. First, despite a large number of job openings, it might take some people beyond the cutoff date to get a job. The $1,200 incentive would ease any hardships caused by this.
The other real consideration is that people are making more with the enhanced unemployment funds than they are working. In Mississippi, people can make up to $535 per week, the equivalent of $13.75 per hour or $28,600 annually. Many workers in Mississippi make much less than that. For many, the decision not to work is not about milking the system but about not having to choose between buying groceries or paying rent. Montana recognizes this, and they are hoping the $1,200 incentive will help make that transition easier.
There is no doubt that we need to get people back to work, but we also should not pretend that there are no lasting economic effects from the pandemic. And we should recognize that many working Mississippians can legitimately use that incentive for necessities.
Reeves can help both businesses and workers with only a minor change to his plan. He should follow the lead of his fellow Republican in Montana to do so.
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