A lot of bad analysis and outright false claims are being circulated about unemployment in North Carolina and recent cuts in the state’s unemployment benefits that are hurting workers and their families.
Let’s clear the air with some facts.
An unemployed worker can’t move to NC and receive unemployment insurance here.
If a person is unemployed, moves to another state and applies for unemployment insurance, the benefits would be paid by the state where his or her former employer was located. To suggest, as Gov. McCrory did recently, that unemployed people were flocking to North Carolina to collect benefits from the state reflects a fundamental misunderstanding of how unemployment insurance works.
The evidence is also clear that there has not been a mass influx of unemployed workers to North Carolina.
The drop in North Carolina’s unemployment rate is largely due to people leaving the labor force, not the cut in unemployment benefits.
As we have noted elsewhere, as have numerous well-respected economists here, here and here, the superficial improvement in the state’s unemployment rate is not signaling a much-improved level of employment. Rather, the unemployment rate is dropping largely because many jobless North Carolinians have stopped looking for work, shrinking the state’s overall labor force. Why? There are simply not enough jobs for those who want to work. And that is happening while the working-age population is growing. Read More