Are Benefits Keeping Workers Unemployed?

unemployment_benefits_webAmerica’s unemployment rate has been too high for too long, even as the economy continues to recover. A new white paper from Express Employment Professionals explores the connection between benefit programs and their impact on employment.

“Getting people back to work should be our number one goal in America,” said Bob Funk, CEO of Express. “When there are concerns about whether our social programs are keeping people from working, then we have to ask some serious questions.”

Moral Hazard Trap
According to the Social Security Administration, in less than a decade, disability claims have risen by 44 percent for people formerly in the workplace. The top 10 states with the largest percentage increases between 2000 and 2012 were Texas, Utah, New Hampshire, Idaho, New Mexico, Oklahoma, Nevada, Washington, Alabama, and Wisconsin.

The white paper, “A Safety Net or Trap,” showed that those who did find work while receiving welfare, unemployment, and government assistance rarely found pay that was more what they were receiving for not working.

While the benefits are necessary to help those who are out of work, if the job a person can find pays the same or only slightly more than the benefits they receive—or if they don’t like the work available to them—they could choose to stay unemployed.

Why work when you can receive the same amount for not working?

Solutions That Work
At Express, we don’t believe this is fair. People shouldn’t be faced with such impossible choices.

“Express believes it should be a national priority to eliminate barriers that come between people and the jobs they want or need,” Funk said. “So it’s time to ensure our government benefit programs do what they should do: help people so they can get back to work.”

To read the entire white paper, visit ExpressPros.com.

Movin’ On Up is brought to you by Express Employment Professionals.

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