Paul Davidson of USA Today has a feature story about how record low job numbers are due in part to the hurdles states have enacted to get unemployment benefits.
The article describes how only around 60% of those eligible for unemployment benefits are applying, down from the 75% portion “during the last two economic expansions in the late 1990s and mid-2000s.” Such obstacles are a main reason why low unemployment rates have not led to an increase in wages for working folk.
Besides folks not receiving the unemployment benefits due them, the article notes, the perception of the nation’s economic health is also being distorted.
The upshot: The economy is in good shape, but not that good. The low share of laid-off workers seeking jobless benefits also raises concerns about the social safety net in coming years as the economy shows early signs of wobbling. The stock market has retreated from its October peak, oil prices have tumbled and General Motors announced about 14,000 layoffs last week. Many economists predict a recession in 2020.
In other words, during this economic boon(?), there is actually more unemployment not showing up in the economic measurements. And so, this unmeasured unemployment is leading to less unemployment benefits being paid out to folks and to downward pressure on wages.