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Millions of people are set to lose their unemployment benefits this weekend when federal outbreak policies end almost 18 months later.
To manage the aftermath of the Covid-fueled economic downturn, Congress authorized the historic expansion of the country’s safety net for the unemployed in March 2020.
Legislators doubled those temporary extensions, increasing the number of people eligible for unemployment benefits and increasing the amount of weekly aid for recipients.
Absent from congressional action, that aid will run out Saturday or after Sunday, Depending on state administrative regulations. With the economy and labor market improving in recent months, lawmakers are unlikely to raise policies for a third time.
If that happened, about 8.8 million Americans would completely lose their benefits, a Guess Progressive Think Tank, from The Century Foundation.
Another दश 3 million or more of their help will be reduced by $ 300 per week, group projects say. According to the Department of Labor, the average person will receive about $ 321 a week or about 38% of their pre-paid wages. Data.
According to Till von Watcher, professor of economics at the University of California Los Angeles and director of the California Policy Lab, we are reducing benefits when many, many individuals depend on them.
“This is a recurring problem in the American recession. We ask politicians to come up with benefit programs and they set end and start dates,” he added. “They are prepared in advance and have nothing to do with how the economy is.”
The White House supports the termination of नस 300 weekly bonus payments as scheduled. An average of 832,000 new jobs were added each month in the last three months, and the U.S. unemployment rate fell to 5.4%.
However, the Biden administration Appealed to states with high unemployment rates Continue to benefit some groups after this weekend’s cutoff using federal funds allocated to states through the American Rescue Plan. Those groups include long-term unemployed and workers such as independent contractors who are not eligible for traditional state assistance.
It is unclear whether the states will do so. The U.S. Department of Labor is not pursuing those decisions because the use of funds is not under its supervision, the spokesman said.
Already, 26 states moved to end most or all federal benefits in June or July, before their official Labor Day cutoff.
All Republicans, except his governor, Louisiana, said the increased benefits are preventing people from finding work and hindering economic reform by increasing labor shortages.
More liberal benefits led criminals to target the unemployment system more frequently.
“In the midst of massive fraud and labor shortages, expanding unemployment insurance benefits is the federal government’s most flawed-and-harmful economic policy,” said Rachel Gresler, a research fellow at the Heritage Foundation, a right-leaning think tank. Wrote In July.
However, the available evidence suggests that benefits did not play a major role in assigning challenges.
In states that cut federal benefits in June, 7 out of 8 unemployed workers did not find work until early August. Practice. This suggests that the removal of benefits did not lead to a large increase in employment and a कप 2 billion cut in spending on housing from the local economy, the study found.
Reducing costs can have an adverse effect on jobs, if customers withdraw meals and other activities to save money.
According to Betsy Stevenson, a professor of public policy and economics at the University of Michigan, legislators should weigh the consequences of this net employment when making policy decisions. With regard to the benefits of unemployment, the question arises: is the loss of household income or the job-disappointing effect of increased benefits more important?
“We need more money to encourage people [at the moment], Citing available research, Stevenson said.
Economists suggest that factors beyond the benefits of unemployment may be playing a major role in employers’ difficulty finding workers.
For example, covid health risks are still present, exacerbated by highly contagious delta types, and childcare-related roadblocks have not been completely reduced.