9 News: Colorado keeping extra $300 unemployment benefits, hiring struggles persist

Published: 7:23 PM MDT June 9, 2021

Updated: 6:43 AM MDT June 10, 2021

In a recent survey, about 65% of operators told the CRA they believe the biggest obstacle to hiring is workers choosing to stay on unemployment benefits.

It's why governors, including Colorado's neighbors in Utah, Arizona, Nebraska, and Wyoming have decided to end the extra $300 a week for people on unemployment insurance beginning as early as this weekend.  

“I do not think economic decisions are made by just having or not having 300 dollars in your pocket," said Dr. Kishore Kulkarni, a Professor of Economics at MSU Denver. 

Kulkarni doesn't expect unemployment rates to go down in the states that end the extra benefits. He says wages need to go up. 

“As wages are pushed up, that is incentive enough for employees in restaurants, in the travel industry, in motels, to come back to work," he said. "And therefore increasing permanent wage is a better sign of coming back to work rather than just giving them $300 a month."