Gov. Parson to end pandemic-related unemployment benefits

Governor makes effort to return absent workforce by ending special benefits for unemployed
 
n order to address workforce shortages across the state, Governor Mike Parson has directed the Missouri Department of Labor and Industrial Relations (DOLIR) to notify the U.S. Department of Labor that Missouri will end participation in all federal pandemic-related unemployment insurance programs effective Saturday, June 12 at 11:59 p.m.
“From conversations with business owners across the state, we know that they are struggling not because of COVID-19 but because of labor shortages resulting from these excessive federal unemployment programs,” Gov. Parson said. “While these benefits provided supplementary financial assistance during the height of COVID-19, they were intended to be temporary, and their continuation has instead worsened the workforce issues we are facing. It’s time that we end these programs that have ultimately incentivized people to stay out of the
workforce.”
“As I travel the state, from Sarcoxie to Hannibal and all points in between, over-arching concerns from business owners is the shortage of employees,” Lieutenant Governor Mike Kehoe said. “Across every industry, businesses cannot compete against federal largesse. Our economy is built upon an active and vibrant workforce, and we should be cultivating job-creation and employment rather than inhibiting them. The jobs exist and the demand exists, and I applaud the governor for taking this bold and decisive action.”

Programs terminated
The termination applies to the following programs:
- Pandemic Unemployment Assistance;
- Emergency Unemployment Relief for Government Entities and Nonprofit Organizations;
- Federal Pandemic Unemployment Compensation;

- Pandemic Emergency Unemployment Compensation;
- 100 Percent Reimbursement of Short-Time Compensation Benefit
Costs Paid Under State Law; and
- Mixed Earner Unemployment Compensation.
“We know that one of the last remaining hurdles to full economic
recovery is addressing this labor shortage. Even with unemployment at
only 4.2 percent, there are still 221,266 known job postings across the
state,” Gov. Parson said. “The solution to close this gap is not the
excessive spending of taxpayer dollars by the federal government, but
rather getting people back to work and to a sense of normalcy for
themselves and their families. Today’s action ensures that we will fill
existing jobs as well as the thousands of new jobs coming to our state
as businesses continue to invest and expand in Missouri.”
In a letter to the U.S. Department of Labor, Missouri Department of
Labor and Industrial Relations Director Anna Hui gave notice of
Missouri’s intention to terminate all federal pandemic-related
unemployment programs.
“During the last recession in 2008, the federal government contributed
$25 per week to supplement state unemployment benefits. During the
latest economic downturn, Washington poured in $600 per week in
addition to Missouri’s weekly benefit of up to $320,” said Director Hui.
“Even after the original $600 supplement expired, it was replaced by a
federal supplement that provides an extra $300 per week on top of
Missouri’s existing state benefit, meaning thousands of claimants
continue to receive $620 per week or more,” Director Hui continued.
“The unemployment system is designed to provide a temporary safety
net as workers look to reenter the job market. Leaving the level of
benefits artificially high would prevent a return to full employment in our
state.”
Work search required
The action follows steps taken last July to require claimants to again
conduct weekly work searches in order to be eligible for unemployment
benefits. This work search requirement had originally been waived in
March of 2020 as part of an agreement with the federal government to
receive funds under the CARES Act.
Under Missouri’s law, claimants are required to perform and report three
work search activities per week. Qualified work search activities include
filing an application (online or in-person) with an employer or through
job posting sites or attending a job fair, job interview, reemployment
service, or skills workshop.
Missouri Job Centers are available to assist unemployed workers with
these requirements by providing customized job searches through
jobs.mo.gov, job fairs, Reemployment Services and Eligibility
Assessment (RESEA) appointments, workshops, and other training
programs. Employers are encouraged to post job openings on MoJobs.