Topline
Officials from the administration said that President Joe Biden would not press for federal Covid-era unemployment aid to be extended after it expires in just three weeks. However, the president is encouraging some states in crisis to fill the gap and continue to offer additional benefits to jobless people with federal aid money.
On May 14, 2020, a man in a mask walks past an "Now Hiring” sign in Arlington, Virginia. AFP via Getty Images
The Key Facts
Biden believes the economy is strong enough to allow the $300-a week federal boost to unemployment checks to expire on Sept. 6, according to Treasury Secretary Janet Yellen, and Labor Secretary Marty Walsh. The president still believes that it might make sense for states with higher than average jobless rates to extend some federal government enhanced benefits past September's end. This includes expanding eligibility for unemployment and allowing those who are not eligible to remain on the unemployment rolls for longer periods of time. In a letter to the heads of the Senate Finance and House Ways and Means, Yellen and Walsh stated that state governments can use the coronavirus relief money of Marchs American Rescue Plan for these extensions.
Important Quote
As President Biden stated, the boost was intended to be temporary. Yellen Walsh and Walsh both said that it is appropriate for that benefit boost not to last.
Tangent
Although the national unemployment rate has been below 6% for several months, eight states had rates above 77% in June: New Mexico (7.9%), Connecticut (7.9%), Nevada (7.5%)), New York (7.8%), Hawaii (7.7%), New York (7.7%), California (7.7%), New Jersey (7.3%), Illinois (7.2%). Two months ago, a few metro areas had even higher unemployment rates. The rate was 10% in Atlantic City and Maui. Because their economies are dominated tourism, some communities face a long recovery.
Contra
Several Republican-led states have decided to terminate federal unemployment benefits, even though they will expire naturally next month. This includes large states like Texas and Florida. These officials claim that there are more than 10,000,000 job openings and that a generous unemployment system discourages people going back to work.
Important Background
Covid-19 struck the United States in its first year of operation. It forced many businesses to close down and forced people to move into their homes. This caused the April record-breaking 14.8% unemployment rate. Congress responded by increasing the weekly unemployment check by $600. This allowed people to collect unemployment longer than usual, and offered help to contractors and other individuals not normally covered by state unemployment programs. These programs were previously extended multiple times, most recently in March's American Rescue Plan. However, this jolt is ending next month, and Biden indicated that he does not believe another extension is necessary.
Big Number
8.7 Million. According to the Bureau of Labor Statistics, that's how many Americans were jobless and looking for work in July. This is the lowest level of unemployment in more than a year but it's still close to 3 million higher than pre-coronavirus levels.
Continue reading
Millions of people will be affected by pandemic unemployment in September. Many have been terminated (CNBC).
