[Ensure you have all the info you need in these unprecedented times. Subscribe now.]
Washington — The number of Americans applying for unemployment benefits in the week ending June 19 has declined. This shows that furloughs are declining and the employment market is improving.
The Ministry of Labor said on June 24 that unemployed claims fell 7,000 from the previous week to 411,000. The number of weekly applications for unemployment assistance has steadily decreased from about 900,000 in January this year. The level of unemployment allowance generally reflects the pace of furloughing.
As the pandemic diminished, states and cities lifted more business restrictions, and California fully reopened on June 15. The economy is recovering as consumers travel, eat out, and visit cinemas and amusement parks. According to the Atlanta Federal Reserve Bank, quarterly growth in the April-June quarter could exceed 10% annually.
Pandemic-related unemployment assistance programs have begun to discontinue in response to business complaints that aid makes it difficult to find workers, as many employers are anxious for employment. I will. Starting this month, 26 states will end an additional $ 300 weekly federal unemployment allowance, 22 of which will also suspend all unemployment support for self-employed people, gig workers, and those who have been unemployed for more than six months. I will. The additional $ 300 will end nationwide on September 6th.
Bank of America economists estimate that those who earn less than $ 32,000 a year in their previous jobs can receive more with an additional $ 300 in unemployment assistance. At the same time, the federal government set up two unemployment allowance programs for the first time last year for millions of self-employed and contract workers.
The four states of Alaska, Iowa, Mississippi, and Missouri stopped paying $ 300 last week. All but Alaska have also discontinued two programs for self-employed and long-term unemployed.
In Iowa, Mississippi, and Missouri, about 163,000 people are unemployed and unemployed due to cutoffs.
According to the National Employment Law Project, a workers’ advocacy group, the decision by 26 states (almost all run by the Republican Governor) to cut $ 300 would significantly reduce unemployment assistance for about 4.7 million people. I will. The state unemployment allowance, on average, provides about $ 320 a week, usually replacing about 40% of the unemployed’s previous wages.
According to NELP, about 2.3 million people will lose all unemployment support in 22 states that have decided to end support for self-employed and long-term unemployed.
A coalition of progressive groups released a June 24 report, with the federal and state governments jointly managing the early cutoffs of benefits and the difficulty of managing unemployment assistance in the early stages of the pandemic. The current unemployment insurance system is in the COVID-19 recession.
When the pandemic shutdown suddenly began in March 2020, most state unemployment systems were quickly overwhelmed by the demand for unemployment assistance from millions of newly dismissed workers. Some people haven’t received benefits for months.
And when the federal government created new programs that covered things that weren’t covered by state aid, many state agencies re-used old software (some of which were in the 1960s) to handle additional applications. I had a hard time programming.
In their report, the Institute for Economic Policy, NELP, the Center for Popular Democracy, and the Washington Center for Fair Growth recommended various reforms, including a permanent expansion of qualifications to include gig workers and contractors. .. Automatically extend benefits during a recession beyond the 26 weeks offered by most states. Raise the minimum benefit level.
Want more news? Listen to today’s daily briefing below Or for more information, please click here.
https://www./articles/us-jobless-claims-tick-down-411000-economy-heals US unemployment claims fall to 411,000 as the economy recovers