Workers aren't coming back because of low vaccination rates, not cushy unemployment benefits

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by economist Luke Pardue at payroll platform Gusto. That analysis found that workers over the age of 25 flocked back to work in states with higher vaccination rates; employment gains were led by states that had the most fully vaccinated adults.The six most vaccinated states in this group of 12— Alaska, Iowa, New Hampshire, North Dakota, West Virginia, Wyoming — had an average of 34% of adults vaccinated when governors announced the end of $300 in weekly federal unemployment benefits.

Meanwhile, the story was different in less-vaccinated states — Alabama, Idaho, Indiana, Missouri, Mississippi, and Nebraska, which had a cumulative average of 27% of adults vaccinated — prematurely cutting off benefits. Their headcounts grew by just 3% since April 11. Significantly, according to Gusto, the two groups of states had similar employment trends until the announcement that benefits would be revoked. Once that came,"nearly all of the growth after the announcement dates is driven by growth in higher-vaccinated states."

 

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