Will increased unemployment benefits continue last July? It is the question on the mind of every unemployed worker.
Without the weekly $ 600 increase currently at stake, the typical unemployment recipient will be online for just $ 380 a week, and if that happens, millions of Americans will inevitably struggle to make ends meet.
It is for this reason that some lawmakers have been pushing to extend unemployment benefits beyond July 31, when they expire. But other lawmakers are backing down, stating that rising unemployment is not a good idea for several reasons:
- The economy is reopening.
- The unemployment rate has fallen since April.
- The weekly increase of $ 600 discourages workers from returning to a job.
However, these arguments hold less water now that the COVID-19 outbreak is emerging again. As cases increase and more states impose additional restrictions, the economy is likely to regress and the unemployment rate will increase. And while it’s true that workers may, in fact, prefer to remain unemployed as long as they earn an additional $ 600 a week, the reality is that many unemployed people have no role to return to.
Image source: Getty Images.
When lawmakers meet in July to discuss a second COVID-19 aid package, the issue of spreading the rise in unemployment is likely to come up. But even if that weekly boost of $ 600 it is Extended, those who are currently collecting it may experience a financial shock when they realize that the extra money may be subject to delays.
Lawmakers must act quickly
The CARES Law establishes that the increased benefits for the unemployed will expire on or before July 31. And most states will probably be wrong on the “before” side.
The reason? Unemployment benefits are generally paid on a weekly cycle that ends on a Saturday or Sunday. This means that the weekly increase of $ 600 will usually run out on July 25 or July 26. Extending the increase beyond that point without changing payment cycles would mean bleeding until August.
If lawmakers fail to agree to extend increased benefits by July 25, even if they do agree to keep that extra $ 600 at stake, it could take weeks to reauthorize that extra help, leaving unemployed workers a gap for several weeks. As such, those who depend on rising unemployment should now prepare for the possibility that their benefits may temporarily drop.
Americans need that extra relief
Democratic lawmakers have called for extending the increase in unemployment until the end of the year. Whether that happens has yet to be determined, but it is clear that if that momentum is removed in August, the consequences will be severe. Not only will millions of Americans risk falling behind on essential expenses like rent, but they will also have less money to inject into the economy at a time when an increase in spending is desperately needed to get out of our current recession.
If legislators do vote to extend the increase in unemployment, let’s hope they act quickly. Otherwise, many unemployed Americans will suffer without good reason.
