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Illustration: Annelise Capossela/Axios

The extra $600 a week of unemployment insurance isn't creating a disincentive for job seekers, per a new study by Yale economists.

Why it matters: Even with that extra help, millions of Americans are barely making ends meet. Now it has expired, and congressional Republicans' argument against extending it — that it rewards unemployment — isn't backed by the data.

The big picture: Some small-business owners around the country have said they believe the extra $600 a week was making it more difficult for them to hire workers. But when the Yale economists zoomed out, they found that the benefit had no effect on the labor market.

  • "Our findings don't imply that nobody is making this particular tradeoff, but what we do find is that [the extra benefit's] aggregate effect on employment is zero," Dana Scott, one of the study's authors, tells Axios.
  • In fact, there are around 14 million more unemployed people than there are jobs, per the Economic Policy Institute. "If we’re in a scenario where the jobs aren’t there, searching isn’t going to help," Scott says.

The stakes: Reducing — or doing away — with the benefit could actually lead to bigger economic problems as people have even less money in their pockets and cut back on consumer spending, she says.

Go deeper: The unemployment situation is really, really bad

Go deeper

Dion Rabouin, author of Markets
Nov 9, 2020 - Economy & Business

The jobs recovery remains far from complete

Data: U.S. Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. economy added more jobs than expected last month — 638,000 — marking the sixth month of consecutive declines in the unemployment rate, but there are still 10 million fewer jobs filled than there were in February.

What they're saying: "The combination of elevated unemployment and part-time employment and low participation all point to significant slack in the labor market," economists at Jefferies write in a note to clients.

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Politics: Fauci says he accepted Biden's offer to be chief medical adviser "on the spot" — The recovery needs rocket fuel.
  2. Economy: U.S. economy adds 245,000 jobs in November as recovery slows — America's hidden depression: K-shaped recovery threatens Biden administration.
  3. Education: Devos extends federal student loan relief to Jan. 31
  4. States: New Mexico to allow hospitals to ration coronavirus medical care
  5. Vaccine: What vaccine trials still need to do.
  6. World: UN warns "2021 is literally going to be catastrophic"
  7. 🎧 Podcast: Former FDA chief Rob Califf on the vaccine approval process.
2 hours ago - Health

A safe, sane survival guide

Photo: Luka Dakskobler/SOPA Images/LightRocket via Getty Images

We all know, it’s getting worse.

Reality check: Here are a few things every one of us can do to stay safe and sane in coming months: