Before COVID, you’re right. But during COVID (scheduled to end around Sep I think) GP is right.
Right now, in mine and most states, unemployment benefits started last April and continue through September and the annualized rate is pretty high.
The exact hourly rate varies state by state but is $300/week higher because of COVID, and extended benefit periods.
In my state unemployment caps out at $350/week if you would normally make $550. So, before COVID, if I made $550/week, I would get $350 in benefits. And if I made more I would still make $350.
So basically if I made $14/hour, approximately, employed and lost my job, I would only get about $9/hour.
With the COVID benefits I get $650/week or about $16/hour. And I don’t have to actively work. And the benefit period is longer than 26 weeks.
This is not conjecture, it’s facts and pretty easily visible.
So if I’m looking for work right now and getting $16/hour in unemployment (annualized to $32k) then it’s unlikely that I’ll ever take a job for $15. Or even $20, etc etc
When unemployment benefits drop, then the calculus changes.
There’s a game theory element where it may be better to stay on unemployment through September and then take a job vs taking a higher paying job now.