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Texas Gov. Greg Abbott said that federal unemployment benefits are no longer necessary and that the Texas economy is rebounding after the COVID-19 pandemic.
"The Texas economy is booming and employers are hiring in communities throughout the state," Abbott said in a July 8 Twitter post. "Texans are ready to get back to work."
Texas opted out of further federal unemployment compensation starting on June 26, which included the $300 weekly unemployment supplement from the Federal Pandemic Unemployment Compensation program, Abbott's office said in a May news release.
A recent June employment report found that the number of people re-employed has increased by almost 150,000 employees in the month of June, Texas News Today reported in July.
Close to 45% of posted jobs in Texas offer wages more than $15.50 an hour and more than 76% pay more than $11.50 an hour, according to the Texas Workforce Commission, Abbott's office said.
When he announced in May that Texas would be withdrawing from the compensation program, Abbot said that the focus must shift from paying unemployment benefits to "helping unemployed Texans connect with the more than a million job openings."
He added that another reason for the change is a high number of fraudulent unemployment claims that are being filed.
The Texas Workforce Commission reported that close to 18% of all claims for unemployment benefits during the COVID-19 pandemic were confirmed or suspected to be fraudulent, Abbott's office said. The commission further said that it adds up to 800,000 claims totaling as much as $10.4 billion if the claims were all paid in full.
"Fraudulent unemployment claims rob taxpayer money and do nothing to help the unemployed," Abbott's office said.