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Indiana Ending Enhanced Pandemic Jobless Aid Next Month

By Justin Hicks & Associated Press

Posted May 17, 2021

Gov. Eric Holcomb speaks at the U.S. Department of Commerce's "Discover Global Markets" virtual conference.

(Samantha Horton/IPB News)

Indiana is dropping out of a federal program that provides an extra $300 in weekly payments to unemployed workers and other programs that expanded unemployment benefits during the COVID-19 pandemic.

READ MORE: Restaurants Are Struggling To Find Workers, But Is There Really A Shortage?

Republican Gov. Eric Holcomb announced the decision Monday, saying the changes would take effect June 19. Holcomb signed an executive order last week that reinstates a requirement that those receiving unemployment benefits will again have to show they are actively searching for work as of June 1.

Holcomb said the move is in response to employers complaining that they can’t grow if they can’t hire enough workers. He said there’s just fewer 120,000 jobs that need to be filled. 

“Eliminating these pandemic programs will not be a silver bullet for employers to find employees, but we currently have about 116,000 available jobs in the state that need filled now,” Holcomb said in a statement. “I’ve spoken to leaders in the recreational vehicle industry who tell me they could hire thousands of people today, and in the last couple weeks, we’ve seen companies like Amazon, Apple, Toyota, and Milwaukee Tool announce thousands of new career opportunities for Hoosiers." 

At least a dozen other states led by Republican governors have already announced they will stop paying the extra $300 benefit as soon as June or July.

But economists say there’s no evidence unemployment benefits are by and large keeping people out of jobs. Instead, they point to stagnant wages and a lack of child care options during the ongoing pandemic. 

READ MORE: Experts Say Other Factors Are Causing Hiring Woes – Not Unemployment Benefits

According to the Indiana Department of Workforce Development, an average of 32,000 Hoosiers each week – over the last four weeks – are still using the state’s regular unemployment program.

Indiana is also ending its participation in a federal program that has made gig workers and the self-employed eligible for assistance for the first time and another that provides extra weeks of aid.

Some states like Montana and Arizona have instituted one-time "return-to-work" bonuses as much as $2,000 for workers who secure employment after they opted out of federal benefit programs. The governor's office has not yet responded to an inquiry on whether Indiana is considering the same.

Contact reporter Justin at jhicks@wvpe.org or follow him on Twitter at @Hicks_JustinM.

For the latest news and resources about COVID-19, bookmark our Coronavirus In Indiana page here. 

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