Parson says state will end virus-related federal unemployment benefits

Missouri will follow the lead of several other states and end COVID-19-related federal unemployment benefits.

Gov. Mike Parson announced the move, which will take effect at 11:59 p.m. June 12.

"From conversations with business owners across the state, we know that they are struggling not because of COVID-19 but because of labor shortages resulting from these excessive federal unemployment programs," Parson said at a news conference Tuesday. "While these benefits provided supplementary financial assistance during the height of COVID-19, they were intended to be temporary, and their continuation has instead worsened the workforce issues we are facing. It's time that we end these programs that have ultimately incentivized people to stay out of the workforce."

"As I travel the state, from Sarcoxie to Hannibal and all points in between, over-arching concerns from business owners is the shortage of employees," Lt. Gov. Mike Kehoe said. "Across every industry, businesses cannot compete against federal largesse. Our economy is built upon an active and vibrant workforce, and we should be cultivating job-creation and employment rather than inhibiting them. The jobs exist and the demand exists, and I applaud the governor for taking this bold and decisive action."

Parson's action applies to several federal programs:

• Pandemic Unemployment Assistance
• Emergency Unemployment Relief for Government Entities and Nonprofit Organizations
• Federal Pandemic Unemployment Compensation
• Pandemic Emergency Unemployment Compensation
• 100 Percent Reimbursement of Short-Time Compensation Benefit Costs Paid Under State Law; and
• Mixed Earner Unemployment Compensation.

"We know that one of the last remaining hurdles to full economic recovery is addressing this labor shortage. Even with unemployment at only 4.2%, there are still 221,266 known job postings across the state," Parson said. "The solution to close this gap is not the excessive spending of taxpayer dollars by the federal government, but rather getting people back to work and to a sense of normalcy for themselves and their families. Today's action ensures that we will fill existing jobs as well as the thousands of new jobs coming to our state as businesses continue to invest and expand in Missouri."

The federal government instituted a $600-per-week unemployment benefit last year, replacing it with a $300-per-week benefit. The federal payment is in addition to state-funded unemployment payments.

For questions regarding Missouri unemployment, use the Division Employment Security's virtual assistant at www.labor.mo.gov/coronavirus.