The blog article “Unemployment Benefits…No Problem” aptly highlights the pros and cons of Texas’ unemployment benefits program. It is not hard for the average Texan to sympathize with those who are unemployed as we all tighten our purse strings to make ends meet. Most Texans would not begrudge a hardworking citizen a little help when times are hard. However, it is a disgrace and unfortunate when people take advantage of the system as the blog notes. According to the Texas Workforce Commission (TWC), people receiving unemployment benefits must actively searching for full-time work, apply for positions and accept suitable work. The question is how is this enforced? As the blog article notes, people can apply for jobs all they want and not accept a single one and how would the TWC know? What is particularly disturbing is people can qualify for unemployment benefits up to 76 weeks, which is almost 2 years! There are jobs out there. They may not be ideal but they exist. Fortunately, the TWC allows for people to qualify for unemployment benefits while employed to act as a safety net. However, one wonders how many elect to work and receive assistance versus not working at all. While there is no doubt some people need assistance during these difficult economic times, the question is what kind of accountability is the TWC enforcing?
Having said all the above, I disagree with the blog article’s incitement for employers to hire people on a temporary basis. While I understand the motive, it helps no one in the end because it simply isn’t cost effective. The cost of employee turnover for someone earning $8/hr ranges from $3,500 to $25,000 annually per employee. Businesses’ goal is to make money and hiring someone temporarily is not cost effective. Furthermore, the success of businesses ensures the success and productivity of the national economy when taken as a whole. Therefore, hiring people temporarily could translate into further economic uncertainty and failure.
What is Texas doing now that they weren’t doing 3-4 years ago, which is resulting in an unacceptable unemployment rate?
