Keystone Today

The Pennsylvania Chamber of Commerce is encouraging Gov. Tom Wolf to end increased federal unemployment benefits, claiming they are impeding the state's economic recovery, according to a press release from the PA Chamber.

Additionally, the Chamber sent a letter signed by dozens of local chambers to legislators throughout the commonwealth, expressing the economic impact of business closures and staff shortages from the extra unemployment benefits distributed to more than 750,000 Pennsylvanians, according to an Associated Press report.

“As Pennsylvania begins to re-open, employers are reporting serious workforce shortages which are hindering the state’s economic recovery," PA Chamber of Business and Industry President and CEO Gene Barr stated in the press release.

The press release also reports that, despite high unemployment (7.4%) and wage increases, a large number of Pennsylvanians are choosing to stay at home and avoid looking for work, causing businesses “across a broad spectrum of industries – including restaurants, construction, manufacturing, and supply chain/logistics firms – to reduce hours or even close operations.”

"Over the past several months, we have increasingly heard from our members that despite Pennsylvania’s high unemployment rate and employers raising wages, a large number are having difficulty filling open positions," Barr said.

In the release, the Chamber proposed that Pennsylvania House Bill 508 be passed to alleviate the labor shortage since it would phase out federal unemployment benefits and offer incentives for individuals to return to work.

According to the Associated Press report, the Pennsylvania workforce has decreased by more than 200,000 while payroll has decreased by more than 400,000.

Barr also challenged Wolf's claims that increased unemployment was unrelated to the generous benefits, stating “Despite claims to the contrary, the impacts of the enhanced federal unemployment benefits are not negligible.”

Additionally, the Chamber's cited a study from the Peterson Institute for International Economics (PIIE) indicating that the employment rate of parents with young children did not decrease at a faster rate during the pandemic, implying that these statistics contradict the claims that child care has been an obstacle for individuals returning to work.

According to an American Action Forum study, 40% of Pennsylvania employees could earn more from the additional $300 government unemployment benefit than they might earn working.

Currently, governors in at least two dozen Republican-led states have refused the extra $300-a-week in federal aid, while other states are providing or considering monetary incentives to entice individuals back into the workforce, according to the Associated Press.