AUSTIN (Talk1370.com) -- The State of Texas will opt out of pandemic-related federal unemployment compensation - including a $300 weekly unemployment supplement - at the end of June, Gov. Greg Abbott announced Monday.
The changes will go into effect beginning on June 26.
"The Texas economy is booming and employers are hiring in communities throughout the state," Abbott said in a statement. "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."
At least 16 other states have ended the extra benefit. The federal program is currently set to expire on September 6.
According to the Texas Workforce Commission, nearly 45 percent of the jobs posted with the agency offer wages greater than $15.50 per hour, while more than 75 percent pay more than $11.50 per hour. The agency claims only 2 percent of its job postings are paying minimum wage.
Business leaders have called on Abbott to end the extra payment, saying it was contributing to hiring problems across the state. "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," Texas Association of Business CEO Glenn Hamer said in a statement. "By eliminating the federal supplement, employers will be able to fill their job openings and unleash the full might of the Texas economy."
The move comes after Texas reported zero COVID-19 related deaths on Sunday - the first day that's happened since data began to be tracked at the start of the pandemic. Abbott also reported the state's lowest 7-day COVID-19 positivity rate and the fewest COVID-19 cases in more than 13 months.
Abbott's statement also pointed to fraudulent unemployment claims - with TWC estimating nearly 18 percent of claims either confirmed or suspected to be fraudulent. The agency says that amounts to as much as $10.4 billion.