Originally Posted by e1618978
Do you have statistics to prove that? Because it contradicts what the US dept of labor says - number of job openings is down from 3.2 million to 2.5 million over the last year:http://www.bls.gov/news.release/jolts.htm
Which means to me that job openings are being filled. Also, there are 12 million official unemployed (which really means twice that) - not very many job openings, one for every 10 unemployed or so.
No, but there are certainly some. It much greater than zero. So now the question is how many of the 24M (est.) unemployed are receiving government unemployment benefits and how many of those could actually work in those 2.5M jobs but are refusing to because they are receiving unemployment benefits? I don't know the answer to that question and my guess is that you don't either. I think the answer is unknowable as long as they are receiving unemployment benefits. That's my point.
That unemployment benefits subsidize and help unemployment to persist is hardly a controversial idea. Think about how you would act if you had a butt-load of savings to cover living expenses for several months and you got fired or laid off. Would you necessarily jump at the very next job you heard of? Maybe, if it was the right fit. But if not, you have the opportunity to wait and look around. The exact same effect exists here.
Some key data points that would be helpful to this discussion include:
- The actual number of involuntarily unemployed
- The number of those who qualify under current rules for government unemployment benefits
- The number that are actually receiving government unemployment benefits and for how long
- Where those 2.5M job openings exist as compared to where the unemployed exist (geographically speaking)
I know some of this is available from the BLS, I don't have the time at this moment to dig through their data though. Maybe someone else does.
Here is a study (from Sweden) on this very question: http://ftp.iza.org/dp3570.pdf
From the conclusion:
The evidence suggests that benefit generosity increases unemployment. We view this evidence as fairly robust since the estimates are similar across alternative specifications. The magnitudes involved are rather substantial and appear to be relatively high compared to estimates available elsewhere in the literature. The estimates suggest that an increase in the (actual) replacement rate of 5 percentage points contributes to increasing unemployment by 25 percent.