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North Carolina Cuts Unemployment Benefits
About a week ago I posted on North Carolina’s unemployment dilemma:
By itself, the news is good news, heck, even GREAT news. But it rarely is “by itself”:
Economists say the fast drop in the unemployment rate could be because so many people have become discouraged, are giving up on finding a job and are no longer being counted.
The state’s population of working-age adults who are looking for jobs shrank by 111,000 in 2013.
This is, of course, the same phenomenon that nation republicans use to knock Obama. There the big story is that the national labor force participation rate has plummeted to lows that we haven’t seen in decades.
While the unemployment rate in North Carolina is dropping, there is significant reason to believe that this is due to folks dropping out of the labor force.
Governor McCrory Interview
While the drop in the unemployment rate is largely due to a reduction of folks in the labor force, Governor McCrory has an answer:
While I agree that the rate is subject to the numbers in the work force, the fact that the work force is dropping nationally is important. I’ll have to go back and dig through the state numbers, but if the labor force participation rate loss didn’t change as a result of the end of benefits, you can’t blame the law.
UI isn’t meant to be a social welfare program – in theory it’s INSURANCE that is meant to carry over an individual for a discreet amount of time.