Rather than dramatically slashing the extra $600/week in unemployment benefits coming from Congress, which is slightly reducing labor supply, do the following: Reduce the rate by $120/week for each percentage point decline in the state unemployment rate. If unemployment is 11% or higher, the benefit is $600/week, at 10% the benefit is $480/week, at 9% it is $360, and when the unemployment rate hits 6%, the benefit falls to zero.