Potential $400 weekly supplemental unemployment insurance brings concerns to Kentuckians

BOWLING GREEN, Ky.- Governor Andy Beshear has requested federal approval for a $400 weekly supplemental unemployment insurance, after the additional $600 from the federal government ended Aug. 1.

The application was filed and accepted yesterday, and approval could come in the coming days. 

This money means something different for Kentuckians than it does for people around the country, as Bowling Green Chamber of Commerce President and CEO Ron Bunch said. 

“The cost of living in Kentucky is quite a bit lower than the cost of living in New York or the cost of living in Los Angeles so $400 for a Kentuckian will go a lot further than $400 for someone who lives in New York,” said Bunch. 

And the previous $600 boost on top of unemployment benefits were on average, 120% greater than a Kentuckian’s regular wages. This means that people were making more at home than they were at work. 

In 2020 alone, the Kentucky Labor Force Participation Rate dropped from nearly 60% to 53%. 

“What that means locally is that our labor force has shrunk to the size that it was in about 2010, which is concerning considering that we’ve been the fastest growing city in Kentucky since 2010 so in a matter of months our labor force has reduced a decade of growth,” said Bunch.  

Alex Burnham, recruiter at employment agency Adecco, says companies are desperate to hire people, but he’s seen a decrease in people filling out job applications. 

“Before all of this, I may come into the office one day and have 20 to 30 new applications overnight. Whereas now, I’m seeing maybe four or five new applications, so the pool is definitely smaller,” said Burnham.