It’s the Wages & Benefits, Stupid.

After businesses complained they can’t find enough people to keep their doors open Indiana is set to become the latest state to bring back a requirement that unemployed workers will have to actively search for jobs to get benefits.

“Unemployment has been extended again, stimulus money again – you know, if you’ve got a couple of kids you’re really getting a lot of stimulus money,” Hunter said. “It’s good for them, but it’s bad for me.”

Hunter’s assumption is a common refrain from business owners, the reality is more complicated.

Micah Pollak, a professor of economics at Indiana University Northwest, said plenty of studies have shown that unemployment benefits are not, by and large, keeping people from taking jobs. Instead it boils down to wages.

“I think it’s kind of like a cop-out for business owners to say that because it puts all the blame on the workers and then they don’t take any responsibility for what’s happening,” Pollak said. “I mean, if a couple hundred dollars a week is enough to convince a worker not to work for you, then I think you need to question what kind of work environment and pay are you offering.”

Indiana Public Media

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