Additional 1.3 Million Unemployed

Posted at 7:55 AM, Jul 14, 2020

LANSING, Mich. — Million of out-of-work Americans are being surprised by new information.

The $600 a week they were relying on receiving through the end of July is set TO end a week earlier than they expected. That is one week less of payments than families get. That is the difference between being able to make a car payment, make your rent, put food on the table.

Heidi Sheirholz is a former chief economist with the department of labor and current economist at the economic policy institute and explains why the CARES ACT supplemental is ending so soon.

What it says in the legislation essentially is that it ends on July 31st and we all thought you know the end of July, but when you look at the very specific language what it says is that the last payment will be on or before July 31st. July 31st is a Friday, states unemployment systems end their week on the weekend and pay only full weeks. So the last full week for a payout will be on the 26th.

It’s going to create enormous hardship. Many people will suddenly go from about a thousand dollars a week, to only whatever their states’ normal unemployment benefits are which on average is about $375. It’s not too late for congress to act and extent the $600 supplemental, and economists like Sheirholz hopes they do. That extra $600 per week for people who are getting unemployment insurance is supporting spending of millions of people and that supports the broader economy. We estimate that if the $600 additional UI payment is allowed to expire this country will lose over 5 million jobs over the next year.

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