LYNCHBURG, Va. – This week, unemployment benefits were either drastically cut or eliminated for more than 10 million Americans.
Benefits completely expired for more than 7 million Americans while another 3 million will see their weekly check cut by $300.
This comes as hiring slowed in August, likely due to the surge of the delta variant.
Nearly $800 billion dollars was spent on Federal Pandemic Unemployment, which many used for rent, medication and food.
For every eight people who lost their unemployment benefits in June, only one found a new job. Experts say this is likely due to the lack of childcare and the growing mismatch between the jobs available and people looking for work.
With a record number of 10 million jobs now available, many business owners hope the end of the benefits finds them much-needed workers.
“In our area, we are having a really hard time finding employees,” University of Lynchburg’s Dean of the College of Business Nancy Hubbard says. “People are being offered signing bonuses, they’re being offered incentives to try and get people to work. If you ask local business people, they’re going to be really relieved that this is disappearing.”
Hubbard says businesses are increasing the minimum wage in anticipation of this, so that people are going back to higher paying jobs.