A strange thing happened when North Carolina slashed unemployment benefits. People got jobs. Unemployment fell to its lowest level in five years.
Economists have observed this behavior for decades. The unemployed are most likely to find a job when their unemployment benefits are about to run out.
Their new job may not be as good as they want but any job is better than staying unemployed. Someone who is unemployed for more than six months is at risk of never finding a job again.
When “compassionate” politicians extend unemployment benefits beyond 26 weeks, the unintended consequence is often to condemn recipients to permanent unemployment.