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The labor force participation rate was 62.1% last month, markedly lower than the 63.4% mark it was before the coronavirus pandemic hit the US in March 2020.

There are many reasons why unemployed Americans are not entering the workforce, including the ongoing fear of COVID-19, disabilities such as “long-term COVID,” and other caregiving responsibilities. One factor contributing to the relatively low labor force participation rate is a combination of unemployment benefits and subsidies from the recently expanded Affordable Care Act (ACA), according to a new study by the nonprofit Committee to Unleash Prosperity.

In 14 states, unemployment benefits and ACA subsidies for a family of four in which two people are not working equal $80,000 a year in wages and benefits, the study found.

A for lease sign is displayed in Downers Grove, Illinois. (AP Photo/Nam Y. Huh, File/AP Newsroom)

INFLATION WAS MORE THAN EXPECTED TO 7.1% IN NOVEMBER, BUT CONSUMER PRICES REMAIN HIGH.

In three states, Washington, Massachusetts and New Jersey, these benefits reach more than $100,000.

“A major policy question that has baffled federal lawmakers these days is why so many millions of Americans haven’t returned to work in the post-Covid era. The US is “missing” more than three million working-age workers who could work. and worked before Covid, but not today,” University of Chicago economics professor Casey Mulligan and Heritage Foundation researcher EJ Antony wrote in the study.

“This study shows that a contributing factor to the shortage of workers is generous benefits to families without workers.”

Now a sign of work

Hiring signs are posted outside a gas station in Cranberry Township, Butler County, Pennsylvania. (AP Photo/Keith Srakocic/AP Images)

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The Deflation Act, which the Biden administration helped push through Congress earlier this year, extended subsidies from the US bailout until 2025.

“Expansion of assistance, especially in the case of subsidized health insurance to families with children and without working parents, could mean that families could earn as much or more from receiving public assistance than the average family would from working,” the authors write.

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