Gov. Mike Parson's decision last week to end pandemic-related unemployment benefits next month rather than allowing them to expire in September is being praised by state and local business representatives as a major step toward filling thousands of job vacancies throughout the state.
On Tuesday, the governor announced Missouri would follow the lead of several other states and end federal unemployment benefits related to COVID-19, which he said were keeping people from applying for employment.
"Federal benefits provided necessary financial assistance during the height of COVID-19," Parson said in announcing the benefit suspension that will go into effect June 12. "They were intended to be temporary. Continuing these programs only worsens the workforce issues we're currently facing."
He said there are more than 221,000 "known job openings" in Missouri.
"We know the jobs are out there," he said. "Today's actions ensure that we can fill existing jobs as well as thousands of new jobs coming to our state as companies continue to invest and expand in Missouri.
Qualified unemployed workers in Missouri currently receive a $300-per-week benefit in addition to state-funded unemployment payments. For some workers, the amount of unemployment benefits they are receiving exceeds the amount they could earn in certain jobs, which, according to the governor and many business leaders, has discouraged them from seeking employment.
The governor's announcement drew almost immediate praise from organizations such as the National Federation of Independent Business (NFIB) and the Missouri Chamber of Commerce and Industry.
"Thanks to the governor's actions, small business owners will now get some much-needed help with a growing issue," NFIB's Missouri director Brad Jones said.
"Nearly half of Missouri's small business owners are struggling to fill open positions. In order to get Missouri back up and running, we need our small business owners to grow. They can't do that without workers," he said.
The Missouri Chamber of Commerce and Industry echoed NFIB's statement.
"It is clear that now is the right time to suspend these benefits as we seek to get Missourians back on the job and restore our economy," state chamber president and CEO Daniel Mehan said.
"It's the correct step in encouraging a return to work," Jackson Area Chamber of Commerce president Brian Gerau added. "Every industry in the area is in dire need of additional workforce. From manufacturing to restaurants to education, opportunities abound for employment and we need to encourage application."
Too often, Gerau continued, "applicants merely apply and don't show up for the interview in order to meet a state requirement for unemployment benefits. This is detrimental to those employers wanting to hire."
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