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Please note!
This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.
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FACT BRIEF

Do economists say that the coronavirus-related boost in unemployment payments disrupted the labor market?

By Esther Tsvayg
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NO

A congressional committee noted that five studies of a temporary boost in unemployment benefits enacted in March found scant evidence that the payments disrupted hiring or economic recovery. The measure added $600 in weekly benefits nationwide to offset the impact of the coronavirus shutdowns, making benefits more generous than previous wages for two-thirds of those laid off, according to a University of Chicago study. One cited study, by Yale University researchers, said workers with higher benefits "returned to their previous jobs over time at similar rates as others."

Media reports about workers delaying returns to work because of more generous benefits are at odds with the data. Economists point out that the security of returning to a job likely outweighed the short-term boost to income (the extra payments expired in July).

This fact brief is responsive to conversations such as this one.
Sources
US Senate: Studies show $600 weekly enhanced unemployment benefit has not slowed labor market recovery
University of Chicago: US unemployment insurance replacement rates during the pandemic
Yale University: Employment effects of unemployment insurance generosity during the pandemic
University of Chicago: Dynamic trade-offs and labor supply under the CARES Act
ABC News: Employers struggle to compete with $600 coronavirus unemployment payments
ABOUT THE CONTRIBUTOR
Gigafact
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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About fact briefs published on Gigafact
Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.