Nearly 32 million American workers in total are
now receiving jobless benefits.
CORONA / COVID 19:
Total number of cases recorded in US stands at
3,499,398
1.3m more file for unemployment as US economy
continues to reel
New claims come as additional federal funding offered
to those on unemployment is set to expire
Lauren
Aratani and Amanda Holpuch
Published
onThu 16 Jul 2020 13.32 BST
1.3 million more Americans filed for unemployment in
the US last week as the economy continues to reel from the effects of the
Covid-19 pandemic.
The number
of new claims has dropped over the last 16 weeks, decreasing 10,000 last week
compared to the week before, though the number has hovered above 1 million over
the last month.
Those who
have just started to receive unemployment may only get a few weeks of the
additional $600 the federal government gives to those claiming unemployment
insurance. The extra money, given on top of what states give through their own
programs, is set to expire at the end of the month. Without the additional
cash, the average unemployment check is about $350 a week.
Lawmakers
will return to Congress to negotiate a possible extension on 20 July, but they
will have less than two weeks to come to a compromise before the extra cash is
scheduled to stop. In the meanwhile, the Trump administration unveiled its
solution to relieve the millions who are unemployed: a campaign telling them to
find a new job.
Shutdown
orders in March caused a huge increase in new unemployment claims, which peaked
at over 6m claims in one week at the end of March. As states began to unroll
reopening measures in May, the economy saw much-needed, though small, relief.
The country had 4 million people go back to work in June.
But those
reopening measures may have come at a steep price. Some of the states that were
among the first to reopen have seen dramatic upticks in new cases over the last
few weeks. A handful, including California, Texas and Arizona, implemented some
type of reopening reversals, targeting indoor spots like dine-in restaurants,
bars and gyms, potentially leaving many unemployed once again.
And
millions more Americans remain unemployed after months of being out of work. In
the middle of June, over 17 million Americans were still unemployed, with
thousands more leaving the workforce entirely.
That figure
does not include gig workers who traditionally do not qualify for unemployment
but were made eligible to receive benefits through the Pandemic Unemployment
Assistance program that was created as part of the Cares Act. As of last week,
over 14 million people in 47 states were claiming unemployment insurance as
part of the program, according to this week’s figures.
One of
those people is Cindy Lang, who has run her own house painting business near
Cleveland, Ohio, for 18 years and has clients in seven states. She’s making
about 25-30% of her regular income because fewer people are seeking her services
and she needs to protect herself from clients who don’t want to follow
social-distancing guidelines or wear masks while she’s inside their home
working.
Lang, 57,
is the primary caregiver for her disabled elderly parents, who both suffer from
respiratory illnesses. She said the inability to work normally has been “a
long, tumultuous nightmare”.
It took
three months for her to receive her first unemployment check and during that
period she relied on food stamps and programs which deferred her mortgage
payments and utility bills. Those payment deferral programs are about to end,
as is the government’s $600 boost to weekly unemployment benefits
Without the
extra $600, Lang will have to survive on $180 a week in state unemployment
insurance. “I would not be shocked if I end up having to file for bankruptcy or
lose my house,” Lang said.
She urged
politicians who have yet to find a replacement for the $600 program, and
especially those who want to end it, to spend a couple hours with her and other
unemployed people to understand how much stress they are under. Lang said: “I
wouldn’t wish this on my worst enemy.”
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