Austin (1080 KRLD) - Governor Greg Abbott Monday informed the U.S. Department of Labor that Texas will opt out of further federal unemployment compensation related to the COVID-19 pandemic, effective June 26, 2021. This includes the $300 weekly unemployment supplement from the Federal Pandemic Unemployment Compensation program.
"The Texas economy is booming and employers are hiring in communities throughout the state," said Governor Abbott. "According to the Texas Workforce Commission, the number of job openings in Texas is almost identical to the number of Texans who are receiving unemployment benefits. That assessment does not include the voluminous jobs that typically are not listed, like construction and restaurant jobs. In fact, there are nearly 60 percent more jobs open (and listed) in Texas today than there was in February 2020, the month before the Pandemic hit Texas."
According to the Texas Workforce Commission (TWC) there are more than 837,000 jobs currently available in the state's two online sites. Of those jobs, nearly 45 percent offer wages greater than $15.50 per hour. Approximately 76 percent pay more than $11.50 per hour. Only 2 percent of posted jobs pay around the minimum wage.
Another reason for the state to opt-out of the Federal unemployment supplement according to Governor Abbott was because of the high level of fraudulent unemployment claims being filed. TWC estimates that nearly 18 percent of all claims for unemployment benefits during the pandemic are confirmed or suspected to be fraudulent, which totals more than 800,000 claims, worth as much as $10.4 billion if all claims had been paid.
The Texas business community is celebrating the Governor's move. According to a recent survey from the Texas Association of Business (TAB), "the $300 additional weekly federal stimulus payment was a major barrier to hiring, and 80% of respondents believe it should be eliminated."
"Today's announcement is a boon for businesses who are struggling to get back on their feet in the wake of the COVID-19 pandemic," said TAB CEO, Glenn Hamer. "By eliminating the federal supplement, employers will be able to fill their job openings and unleash the full might of the Texas economy. Under Governor Abbott's leadership, the Lone Star State will remain the jobs engine of America and continue its dominance as the best state for business."
On May 13, TAB, along with more than 50 business associations and chambers of commerce, sent a letter to Governor Abbott and the Chairman of the Texas Workforce Commission, Bryan Daniel, asking them to consider ending Texas's participation in this program.
