Federal unemployment benefit ends prematurely in some states – CBS Detroit

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(CBS Baltimore) – Unemployed people in half of the country are experiencing a sharp drop in weekly unemployment benefits if they have not already done so. Since the US rescue plan was passed in mid-March, the federal government has increased its weekly unemployment checks. The additional $ 300 more than double government benefits in some parts of the country. In the past few weeks, however, 25 states have announced that they will end these benefits prematurely. And for many the time has come.

The $ 1.9 trillion stimulus package set Labor Day as the official end date. However, Alaska, Iowa, Mississippi, and Missouri ended their unemployment benefits on June 12. Alabama, Idaho, Indiana, and Nebraska are among the states that suspended the additional $ 300 on June 19. Arkansas, Florida and Texas are some of the states that ended services on June 26th. Maryland and Tennessee will end their services on July 3rd. White House press secretary Jen Psaki recently said governors have “every right” to end the service early. For his part, President Biden recently indicated that he had no plans to extend it beyond early September.

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The federal unemployment bonus has helped Americans who are still waiting to recover, pay bills and bring food to the table. However, some argue that these generous benefits discourage people from returning to work. (For reference, $ 300 a week is an additional $ 7.50 an hour for someone who would otherwise work 40 hours.) It affects more than 4 million people (25 percent of the current unemployed).

Many considerations flow into the ability to work. The amount received for non-work is certainly one of them. Child care is another. Many schools remained isolated throughout the school year, which deprived many parents of the built-in childcare. This lack of childcare could continue into the summer vacation. A growing gap between the skills of the workforce and the demands of the jobs available makes recruitment difficult. A difference between what employers offer in terms of remuneration and what employees accept must also be taken into account. Added to this is the general friction that inevitably arises when an entire economy steps on the accelerator.

COVID remains a very real threat, especially to those who work with people. The full vaccination rate for the whole country is just over 47 percent. But these prices vary widely from state to state. Mississippi fully vaccinated 29.8 percent of its population, while Vermont vaccinated 65.7 percent of its population. Many federal states that have abolished the federal unemployment insurance premium exceed the national average. Wyoming, Arkansas, Alabama, and Mississippi, the four worst states in the country, are all below 35 percent. With the pandemic far from being contained in some states, people in these locations may be reluctant to resume normal activities.

Regardless of the reasons, many states will continue to try to force people back into the labor market. Louisiana will be the last state to announce an end to the federal unemployment benefit, which will expire on July 31st. A total of 25 of the 27 states run by Republican governors have or will cut federal benefits ahead of Labor Day.

Most of these states are also withdrawing from Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC). PUA supports freelancers and self-employed people who generally do not receive any state aid. PEUC helps long-term unemployed people who have run out of government benefits.

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The end of federal unemployment benefits will have an impact on the local economy. States whose unemployment benefits are $ 300 less will not enjoy spending that federal cash on their businesses; those in need of unemployment insurance tend to spend the money quickly on essentials like groceries and rent. Local businesses will also not have to spend money to fill shelves and hire new employees. The US Congress’ joint economic committee estimates that local economies will lose around $ 13 billion.

“The improved unemployment insurance provided by the CARES Act ensured that tens of millions of Americans were still able to put groceries on the table, put prescriptions in the medicine cabinet, and during one of the worst economic recessions in to keep the lights on in the history of our nation. Many of these Americans are still deeply uncertain about their economic future as we still have more than 8 million jobs behind when we were before the pandemic, ”said committee chair Don Beyer. “If states continue with their plans to end these critical programs, they will tear the ground under the feet of millions of Americans and further hamper our economic recovery.”

Employment remains well below pre-pandemic levels. While the unemployment rate fell to 5.8 percent in May, around 7.6 million fewer people were employed at that time compared to the beginning of 2020. And most of them have been in low-wage jobs that have been lost during the pandemic and have not returned. Around 364,000 people applied for unemployment insurance for the first time last week, the lowest figure since the beginning of the pandemic. (About 250,000 new jobless claims were filed in a typical week leading up to the pandemic.) Another 115,000 applied for PUAs. For the week ending June 12, 14.7 million workers received some form of unemployment benefit.

Here is a list of states and when their $ 300 federal unemployment benefit ends:

Alabama – June 19
Alaska – June 12th
Arizona – July 10th
Arkansas – June 26th
California – September 6th
Colorado – September 6th
Connecticut – September 6th
Delaware – September 6th
Florida – June 26th
Georgia – June 26th
Hawaii – September 6th
Idaho – June 19
Illinois – September 6th
Indiana – June 19
Iowa – June 12
Kansas – September 6th
Kentucky – September 6th
Louisiana – July 31
Maine – September 6th
Maryland – July 3rd
Massachusetts – September 6th
Michigan – September 6th
Minnesota – September 6th
Mississippi – June 12
Missouri – June 12
Montana – June 27
Nebraska – June 19
Nevada – September 6th
New Hampshire – June 19
New Jersey – September 6th
New Mexico – September 6th
New York – September 6th
North Carolina – September 6th
North Dakota – June 19
Ohio – June 26th
Oklahoma – June 27
Oregon – September 6th
Pennsylvania – September 6th
Rhode Island – September 6th
South Carolina – June 26th
South Dakota – June 26th
Tennessee – July 3rd
Texas – June 26th
Utah – June 26th
Vermont – September 6th
Virginia – September 6th
Washington – September 6th
West Virginia – June 19
Wisconsin – September 6th
Wyoming – June 19

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Originally published on Monday, June 7, 2021 at 6:20 p.m. ET.

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