Millions of unemployed Americans lost their unemployment benefits on Monday, leaving only a handful of economic support programs for those still financially stricken by the year-and-a-half coronavirus pandemic.
Two essential programs expired on Monday. One of them provided assistance to the self-employed and another provided benefits for those unemployed for more than six months.
In addition, the Biden administration’s top-up unemployment benefit of $ 300 per week also expired on Monday.
It is estimated that about 8.9 million Americans will lose some or all of these payments.
Although the White House encouraged states to continue paying the weekly allowance of $ 300 using money from stimulus projects, no state chose to do so. Many states have even decided to withdraw from the federal program prematurely after some companies complained that they couldn’t find enough people to hire.
However, the data showed that the elimination of these aids did not improve the situation of the States which chose to do so.
JPMorgan economists Peter McCrory and Daniel Silver found a “zero correlation” between job growth and state decisions to cut federal unemployment assistance. Columbia University economist Kyle Coombs, n ‘found minimal benefits.
The amount of money injected by the federal government into unemployment benefits since the start of the pandemic is simply astronomical. According to the non-partisan Committee for a Responsible Federal Budget, the estimated $ 650 billion allowed millions of Americans who lost their jobs through no fault of their own to stay in their apartments, pay for their food and their meals. gasoline and pay their bills.
“The end of unemployment benefits will be a brutal shock to millions of Americans who will not find jobs on time,” said Andrew Stettner of the Century Foundation, in a report.
The end of these programs comes as the US economy has recovered from the pandemic, but with significant gaps in the recovery. According to the labor ministry, there are still 5.7 million fewer jobs than before the pandemic.