Montana to change Unemployment Boost to Employment Bonus

[The Sound Guy]

Finally, a governor with some sense:

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HELENA, Mont. - Montana Gov. Greg Gianforte announced Tuesday the state will end its participation next month in the federal unemployment program, as the state struggles with a worker shortage.

Beginning June 27, unemployed workers in the state will no longer receive $300 in extra weekly benefits, forgoing payments that were approved through Sept. 6. Instead, the state will launch a new program to provide bonuses to unemployed workers who return to work.

"Montana is open for business again, but I hear from too many employers throughout our state who can’t find workers. Nearly every sector in our economy faces a labor shortage," Gianforte said in a statement, adding that the federal unemployment benefits are "doing more harm than good." Under the new incentive program, workers currently receiving unemployment benefits can qualify for a one-time $1,200 bonus after they have completed four weeks in a new job. The governor approved $15 million in funding for the incentives from federal coronavirus relief dollars allocated to the state.

There are around 25,000 people currently claiming unemployment insurance in the state, according to the Montana Department of Labor. The department also estimates there are around 14,000 job openings in the state.

 

[Boss 302]

Montana's unemployment rate fell to 3.8% in March. I don't think the entire problem is unemployment benefits. You would think where unemployment numbers are low and employers are suffering staffing shortages; they would increase the wages to attract candidates.

 

[J-man]

I see a lot of job hopping in the future for MT workers.

 

[The Sound Guy]

Montana's unemployment rate fell to 3.8% in March. I don't think the entire problem is unemployment benefits. You would think where unemployment numbers are low and employers are suffering staffing shortages; they would increase the wages to attract candidates.

Which is what the liberals want, they are having issues getting a $15 min wage passed, but if they can get bills passed to pay people $15 an hour to stay home for a long enough time, then that will become a de facto minimum wage.

 

[Boss 302]

Which is what the liberals want, they are having issues getting a $15 min wage passed, but if they can get bills passed to pay people $15 an hour to stay home for a long enough time, then that will become a de facto minimum wage.

We have seen in the past where low unemployment numbers creates competition among employers for labor, which resulted in those employers raising their wages and benefits to attract more candidates. I'm not surprised we aren't seeing that happening in the states with low unemployment numbers because over the past year, the government has provided financial support through the PPP for small businesses. I think companies are expecting all states to bail them out on the staffing shortages by doing what Montana is doing. What Montana is doing isn't costing businesses in that state a dime.