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Study: Ending Pandemic Unemployment Aid Prompted ‘Substantial Rise’ In Employment

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  • States that ended pandemic unemployment aid saw “a substantial rise” in employment, according to a recent working paper from the Federal Reserve Bank of St. Louis.
  • The study, which used data from 46 states and Washington, D.C., found that “in the three months following a state’s [emergency unemployment benefits] termination, employment increased by about 37 people for every 100-person reduction in EUB recipients.”
  • “The act of halting by a state was – on average – associated with a substantial rise in employment and a substantial decline in the number of unemployment insurance recipients relative to the other months,” the paper’s authors concluded.

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