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unemployment benefits

Jobs data suggest states that cut off enhanced unemployment benefits did not boost rehiring

Several states ended pandemic-related enhanced federal unemployment benefits early this year over concerns that the extra $300 per week was preventing people from re-entering the workforce. But data from human resource software company Homebase, which CNBC economics reporter Steve Liesman says has provided good information during the pandemic, suggest that eliminating the benefits didn't contribute to re-hiring.

In fact, Homebase found the states that did so actually saw a slight decline in employment, while states that didn't lift the benefits saw 2.3 percent job growth. Critics argue this shows that cutting off the aid "hampers the recovery." Liesman isn't sure about that — he said he doubts there's a negative correlation between benefits elimination and job growth — but he isn't surprised it didn't boost hiring. Bloomberg's Joe Weisenthal added that Homebase's data is just the latest evidence that shows ending unemployment insurance expansion didn't lead to "any kind of employment boon."