The government has a term called the “labor force participation rate.”
If you haven’t heard of it, here’s the definition: “the percentage of the civilian noninstitutional population 16 years and older that is working or actively looking for work.”
It’s an important piece of data because it indicates the labor resources available for producing goods and services. Essential things that keep an economy humming.
The rate last month was 62.1%, a tick lower than the 63.4% registered before the pandemic.
We all know that people were rewarded for not working, and not paying rent during the lockdowns, and making money for doing nothing is a habit that has stuck with many people, especially in blue states.
Here’s the bottom line; being lazy pays pretty well. In 14 states, the amount a family of four can receive through unemployment benefits and ACA subsidies comes to $80,000 per year. In other words, many people can make more money not working than getting a job.
In three states – New Jersey, Washington, and Massachusetts, the benefits are over $100K.
A new study by the nonprofit Committee to Unleash Prosperity supplies this information. Here’s a quote from their findings.
”A key policy question these days that has befuddled federal lawmakers is why so many millions of Americans have not returned to the workplace in the post-Covid era. The U.S. is ‘missing’ more than three million workers of working age that could be working and were working prior to Covid but are not today. “This study shows that one factor contributing to the dearth of workers is the generous benefits paid to families without workers.”
Joe Biden and his administration is a big fan of making sure there is plenty of free money to be found, and his team pushed through Congress an extension of subsidies from the American Rescue Plan that will go on into 2025.
Here’s another telling quote from the study.
“The expansion of assistance, especially in subsidized health insurance to families with children and no parents working, can mean that families can earn as much or more income from receiving government assistance than the median household does from working.”
Not working can pay really well with outstanding benefits too.
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