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If the economic uncertainty of the COVID-19 pandemic has taught us anything, it is that traditional Unemployment Insurance benefits are often a meager fraction of the previous wages earned by an out of work Kentuckian (an average of just 46% in 2021). That's why Americans received additional assistance in the form of Pandemic Unemployment Insurance. So why are State Legislators in Frankfort trying to cut Unemployment Insurance Benefits?
Corporate interests in Frankfort and their legislative allies never seem to miss an opportunity to undermine what’s left of any support for working families during their most difficult circumstances. The latest example of this is House Bill 4, which will cut the duration of unemployment benefits for job seekers from 26 weeks to as short as 12 weeks, increase weekly job search activities from 1 to 5, and after 6 weeks, force claimants to decide between losing the UI benefits they've earned or settling for a job that earns just 2/3 of their previous wages.
UI is a stop-gap for people who find themselves in a bad way. It’s a way to help keep a roof over their heads, have reliable transportation to job interviews, and provide basic groceries for their families while they look for work. And often, it’s still not enough to do even that.
Proponents of this bill would have you believe that they’re an effective tool for the speedy "reemployment" of unemployed workers. But the real effect is that they will force honest Kentucky job seekers into low paying jobs or risk wiping out any savings, drive them into debt and default, and send families spiraling into a cycle of poverty. If that's what they truly want, they should have the courage to admit it. HB 4 is wrong for Kentucky.