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In regards to jobless claims being elevated, some have made the argument that they are high because the unemployment benefits being paid are too generous to induce people to look for a job. Overall, this argument can't fully explain the high levels of claims. In most cases the amount of money you receive from jobless benefits is only a fraction of what you would receive from being gainfully employed. However, there are a growing number of examples which suggest that increasingly generous jobless benefits are inducing some Americans to choose the couch over work.
In one example, some employers in the Detroit region have reported difficulty hiring workers because potential applicants would rather receive unemployment benefits over accepting a job offer.
In one case, a potential applicant asked if his start date could be deferred by eight weeks until his jobless benefits ran out! There have also been numerous anecdotal examples of 'unemployed' workers collecting benefits (that now includes 65% of health care insurance premiums) and opting for jobs that pay 'off the books'. These people may be making less in jobless beneifts, but in many cases the money they are earning under the table more than offsets the lost income. As long as these people can continue to receive generous benefits courtesy of the US taxpayer, the marginal incentive to look for a job is significantly diminished.
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