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Joann's Fine Foods on South Congress Avenue is one of many local restaurants looking to hire staff. (Emma Freer/Austonia)

Texas Gov. Greg Abbott announced Monday that Texas will opt out of further federal unemployment benefits related to the pandemic effective June 26, citing the number of current job openings and concern about potentially fraudulent unemployment claims. The benefits include a $300 weekly supplement.


"The Texas economy is booming and employers are hiring communities across the state," Abbott said in a statement. "According to the Texas Workforce Commission, the number of job openings in Texas is almost identical to the number of Texans who are receiving unemployment jobs."

TWC listed 837,273 job openings as of Monday afternoon compared to 226,849 unemployment insurance claims filed statewide between March 31 and May 1. An estimated 1 million Texans were unemployed as of March, according to latest estimates released by the state agency.

Some local business owners, including Doc's Backyard Grill owner Charles Milligan, suspect unemployment benefits are deterring Austinites from returning to work. But others agree with economists who say multiple factors are at play, including health concerns and child care availability.

Abbott also cited fraudulent unemployment claims. Between March 2020 and April 2021, TWC received 4.48 million unemployment benefit applications, 611,000 or around 14% of which were tagged as suspicious. Most of those tagged were blocked before any benefits were paid out, according to an April 29 press release.

Federal law requires the effective date of such benefits change to be at least 30 days after the U.S. Department of Labor is notified.

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