People wait for their numbers to be called at an unemployment event in Tulsa, Oklahoma on July 15, 2020.
Nick Oxford photo for The Washington Post via Getty Images
93% drop
Americans began receiving an additional $ 600 a week in April as a result of a federal coronavirus relief law.
The federal subsidy was added to the typical weekly payments of the states. As a result, the average American received $ 921 a week in May, according to an analysis of the Labor Department data.
But those checks will drop 65% after July 31, at about $ 321 per week.
Experience will vary widely between states, which set their own profit levels and vary greatly in generosity.
In Oklahoma, which paid the lowest average weekly benefit in May, the average person will see a 93% reduction in unemployment aid, to $ 44 per week.
Oklahoma had an unemployment rate of 6.6% in June, compared to the national rate of 11.1%.
According to the Department of Labor, there were approximately 118,000 people receiving unemployment benefits in Oklahoma as of July 18. (However, that total is almost certainly lower than in reality: The state is one of six that does not report the number of people receiving benefits through a new federal program, Pandemic Unemployment Assistance, for Self-Employed, concerts and other workers previously not eligible for benefits).
In Washington state, which paid the highest average weekly benefit, aid will drop 55% per week to $ 497.
Maximum and minimum benefits
States set minimum benefit amounts for eligible beneficiaries of unemployment aid. This sets a floor for profit levels. (States also limit benefits to the upside.)
Most states set minimums below $ 100 per week.
Hawaii’s minimum, the lowest in any state, will be just $ 5 a week after the federal supplement of $ 600 a week expires.
Low minimums relative to other states do not necessarily mean less generosity. They are partly attributable to more flexible eligibility rules, according to economists. Workers may qualify for benefits in Hawaii with a lower annual income level than in other states, for example. Hawaii paid the second highest average benefit in May, at $ 466 per week.
But, for workers who cash the minimum, or close to the minimum, weekly check, losing $ 600 a week can be a huge challenge. Such recipients may include part-time workers who work few hours, for example.
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Meanwhile, Massachusetts pays unemployed workers up to $ 1,234 per week, the highest maximum benefit in any state. In contrast, Mississippi has the lowest maximum among the states, paying up to $ 235 per week.
With the additional $ 600 a week, unemployment benefits have been more generous than at any time since the unemployment insurance system was created in the 1930s, according to labor economists.
Representative Dan Kildee, Democrat of Michigan, speaks during a press conference on July 24, 2020 in Washington, DC. House Democrats urged Republicans to extend unemployment benefits approved as part of the CARES Act, which expire on July 31.
Photo by Michael A. McCoy / Getty Images
Democrats want to extend the $ 600 benefit, calling it a financial lifeline that has helped shore up the economy and household finances at a time when it is difficult to find new jobs. The Democrat-led House passed the HEROES Act in May, which would extend the $ 600 bond until early next year.
Republicans want to end payments or replace them with something less generous. Senate Republicans on Monday issued a proposal to cut weekly aid by two-thirds to $ 200 a week, eventually changing to a policy that offers up to 70% wage replacement.
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