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VERIFY: Are unemployment benefits more than NC minimum wage?

Many are blaming worker shortage on unemployment benefits. We verify if people are making more on unemployment benefits than working a minimum wage job in NC.

CHARLOTTE, N.C. — Many have been writing in, saying the beefed-up unemployment benefits are causing a worker shortage.

Charlotte restaurant owners like Charles Read from Queen City Craft and Gourmet tells us he's having a hard time hiring, even though he's bumping up salaries. 

 "You have some people who are just plain making more money sitting at home, and instead of incentivizing them to come back to work, we are incentivizing them to sit home," Read said.

THE QUESTION: 

Are people making more in unemployment benefits than they would working a minimum wage job? 

SOURCES

The U.S. Department of Labor

The North Carolina Department of Commerce

International Business Professor Harry Bowen at Queens University

THE ANSWER

TRUE 

WHAT WE FOUND 

According to the Labor Department, the North Carolina Minimum wage is $7.25 an hour. 

If you were eight hours a day, five days a week, you'd take home $290 before taxes. 

For unemployment benefits, the state gives a prorated amount depending on your wages from your last job. The maximum a person can get is $350 a week.  

However, through the American Rescue Plan, the federal government provides $300 on top of what people receive from the state.

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Kerry McComber from the North Carolina Department of Commerce sent us this email saying the current average unemployment payment, including the federal benefits, is about $495 a week. 

"The lower-wage workers are likely to see them pop up in unemployment benefits; particularly the federal contribution is going to have an effect their decision to stay home because its a larger portion of their monthly income," said Bowen. 

We can Verify that, yes, people are making more money in unemployment benefits than earning minimum wage. Experts say unemployment benefits are likely one reason people are not going back to work, but there are always other factors, as well. 

VERIFY is dedicated to helping the public distinguish between true and false information. The VERIFY team, with help from questions submitted by the audience, tracks the spread of stories or claims that need clarification or correction. Have something you want VERIFIED? Text us at 704-329-3600 or visit /verify.

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