Analysis

As Workers Stay Home And Collect Unemployment Handouts, Companies Replace Their Jobs With Machines

Ben Zeisloft
As Workers Stay Home And Collect Unemployment Handouts, Companies Replace Their Jobs With Machines
Mason Trinca for The Washington Post via Getty Images

As the United States economy recovered from COVID-19 and the lockdown-induced recession, employers have been plagued by a severe labor shortage. 

Under President Biden’s $1.9 trillion American Rescue Plan, the federal government extended funding for $300-per-week enhanced unemployment payments. Even as American businesses sought to hire workers once lockdowns ended, as many as 1.8 million chose to stay home and keep receiving handouts. Some even filed suit against their governors, who opted out of the federal program in the interest of boosting small business activity.

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