A top Trump economic adviser says the $600 weekly boost in unemployment benefits will be allowed to expire in late July
- National Economic Council Director Larry Kudlow said on Sunday that the $600 boost in weekly unemployment payments would expire in late July.
- He touted the idea of a hiring bonus instead to pay the unemployed for finding a job.
- But experts say unemployment levels will remain near 10% for the rest of the year, making it difficult for an easy transition back into the labor force for many jobless people.
National Economic Council Director Larry Kudlow on Sunday pledged an end to the $600 boost in weekly unemployment benefits at the end of July. He touted a proposal for a hiring bonus instead.
During an interview on CNN's "State of the Union," Kudlow said the additional payment "might have worked for the first couple of months," but "it'll end in late July."
"We're paying people not to work. It's better than their salaries would get," Kudlow said. "The jobs are coming back, and we don't want to interfere with that process."
Kudlow said the Trump administration was reviewing "a reform measure that will still provide some kind of bonus for returning to work." He didn't offer specifics but added it wouldn't be as "substantial."
The White House adviser's comments reflect the staunch Republican opposition to expanding the $600 weekly unemployment boost past its July 31 expiration date. That measure was enacted in March as part of a coronavirus rescue package to keep the surging number of jobless Americans afloat during the coronavirus pandemic.
But conservatives say the increased payments are preventing many workers from returning to their jobs or keeping them from seeking out new ones. At least half the labor force is earning more on unemployment than in their old positions.
About 44 million Americans filed for unemployment in the past three months, sending the unemployment rate soaring to 13.3% as of May. It unexpectedly dropped from about 15% earlier this month in the latest jobs report, stunning economists who had projected the rate would increase to 20%.
Lawmakers are expected to debate another round of emergency federal spending next month — just as the patchwork of federal assistance programs to help people and businesses during the pandemic near their end during a recession.
The Trump administration is weighing whether to roll out a "back-to-work" hiring bonus to encourage workers to reenter into the labor force. Several Republican proposals would implement a cash bonus ranging from $450 a week to $1,200 for two weeks.
Still, experts say unemployment levels will be near 10% for the rest of the year, which reduces the prospect of an abundance of jobs even as the economy starts to rebound from the pandemic.
Meanwhile, Democrats are seeking to extend the benefits through January as part of a relief bill that passed the House last month. The GOP, however, says it isn't taking it up.