Late Thursday, Michigan House voted to end the Federal Pandemic Unemployment Compensation (FPUC) program and get Michiganders back to work. The FPUC program, which runs through Sept. 6, adds a $300 weekly payment to all eligible individuals receiving unemployment benefits. The $300 is added on top of the state’s maximum weekly unemployment benefit of $362, making the maximum weekly benefit $662 per week (state/federal). This equates to $16.55 per hour (based on a 40 hour workweek) or $34,424 per year.
Given the Governor’s announcement Thursday that Michigan will end its COVID-19 restrictions on June 22, we must be aggressive in addressing the ever-worsening workforce crisis. The Michigan Chamber appreciates the leadership of the Michigan House to join 25 other states in terminating the extra $300 in federal unemployment benefits. Coupled with efforts to address other barriers to employability, including the skills gap and affordable housing and daycare, Michigan should be able to move the needle on its workforce challenges.
Given the progress Michigan has made with vaccines and today’s move to fully reopen the economy, the Chamber supports ending the federal unemployment benefits and focusing on returning Michiganders to work. The truth is that there has never been a better time to enter the workforce. In fact, there are more job openings in Michigan today than Michiganders receiving unemployment benefits.
It is a worker’s market, whether you are skilled or unskilled. Job providers are raising wages, offering signing and retention bonuses, offering cash to interview and competitive benefits including job flexibility, work-from-home options, longer vacations and shorter shifts.
New federal data released in early June illustrates the increasingly urgent need to address the ever-worsening workforce crisis and break down the barriers to employability. In fact, a new poll by the U.S. Chamber of Americans displaced by the pandemic found that one in eight (13%) who became unemployed during the pandemic and remain unemployed have turned down at least one job offer in the past year, and one in six (16%) not actively seeking work say the amount of money they are receiving from unemployment benefits and government programs makes it “not worth looking” for jobs.
New data suggests this policy change will move the needle in terms of addressing the state’s workforce crisis. We will be encouraging the Michigan Senate to consider following the House’s lead on this important piece of legislation.
Please contact Wendy Block with any questions at wblock@michamber.com.