NC Budget and Tax Center, Uncategorized

A regional look still shows cuts to unemployment insurance didn’t improve employment outlook for NC

One of the fundamental claims made about North Carolina’s cuts to unemployment insurance payments was that such a policy change would create a greater incentive for jobless workers to take available jobs and employment in the state would rise as a result.

The Economic Policy InstituEPI Cuts to Unemployment Insurance Benefitste (EPI) posted a great graphic once again demonstrating that there is no evidence to suggest such a causal effect on employment from unemployment insurance cuts.  In this case, researchers at EPI compare North Carolina’s employment levels to our neighbors who are likely to have experienced similar macro-economic conditions. Their finding:

As the graph shows, North Carolina’s prime-age EPOP (employment to population ratio) began rising rapidly in the months prior to the duration cutback, began falling steadily just two months after the duration cutback, and differed very little in behavior after the cutback from prime-age EPOPs in surrounding states.

Bottom-line: North Carolina’s labor market has not improved as a result of unemployment insurance cuts.

2 Comments


  1. david esmay

    August 11, 2014 at 5:21 pm

    There are no jobs in NC, that’s why people are leaving in droves, that and the NC GOTP.

  2. Alex

    August 11, 2014 at 10:41 pm

    I believe the state is actually gaining population if you check the records.

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