Friday, May 14, 2010

Lazy People Prefer Something for Nothing

From the Detroit News:

In a state with the nation's highest jobless rate, landscaping companies are finding some job applicants are rejecting work offers so they can continue collecting unemployment benefits.

It is unclear whether this trend is affecting other seasonal industries. But the fact that some seasonal landscaping workers choose to stay home and collect a check from the state, rather than work outside for a full week and spend money for gas, taxes and other expenses, raises questions about whether extended unemployment benefits give the jobless an incentive to avoid work.

Members of the Michigan Nursery and Landscape Association "have told me that they have a lot of people applying but that when they actually talk to them, it turns out that they're on unemployment and not looking for work," said Amy Frankmann, the group's executive director. "It is starting to make things difficult."

The average landscape worker earns about $12 per hour, according to the Michigan Department of Labor and Economic Growth. A full-time landscaping employee would make $225 more a week working than from an unemployment check of $255.

But after federal and state taxes are deducted, a full-time landscaper would earn $350 a week, or $95 more than a jobless check. The gap could narrow further for those who worked at other higher-paying seasonal jobs, such as construction or roofing, which would result in a larger benefits check.

The jobless in Michigan are collecting for a longer time -- an average of 19.4 weeks last year, up from 15 weeks in 2008. State benefits last for up to 26 weeks. The unemployed can then apply for extended federal benefits that increase the total time on the public dole up to a maximum of 99 weeks.

The federal jobless benefits extension "is the most generous safety net we've ever offered nationally," said David Littmann, senior economist of the Mackinac Center for Public Policy, a free-market-oriented research group in Midland. The extra protection reduces the incentive to find work, he said.


What they should do is follow the Navy's lead and start handing out medals for doing nothing.

This obviously doesn't apply to everyone who is unemployed, though. I happen to know a few people who are unemployed and it's not for a lack of trying to find suitable work in their field. But the difference is that they're actually trying. But at some point I think I'd take anything that pays temporarily. Something coming in is better than nothing - or government cheese - any day in my book.

Thanks to Matt for sending this and pushing me one step closer to my head exploding.

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