Monday, November 30

12 million people could lose their unemployment benefits after Christmas


12 million people could lose their unemployment benefits after Christmas

Stimulus program supports have kept many households afloat across the country.

Photo: RONALDO SCHEMIDT / AFP / Getty Images

Near 12 million unemployed workers in United States they will lose their unemployment benefits the day after Christmas, according to a new analysis. Experts have warned that cutting benefits could push many households into poverty.

Two are the CARES Act programs that will expire on December 26. The first is that of Pandemic Unemployment Assistance which provides unemployment assistance to self-employed workers. That would leave 7.3 million people without income according to a study published this week by the Century Foundation.

Others 4.6 million workers will face the elimination of the benefits of Pandemic Emergency Unemployment Compensation (PEUC), another CARES Act program that provides an additional 13 weeks of support beyond the 26 weeks provided by the states.

The extra $ 600 a week in federal unemployment insurance assistance that workers had been receiving under the CARES Act expired at the end of July, slashing the income of many Americans who lost their jobs during the first months of the coronavirus pandemic.

Stimulus program support has managed to keep many businesses and households afloat as closures occurred across the country. However, an upcoming shutdown could be another shock that would affect the entire economy, according to Andrew Stettner, an unemployment expert from the Century Foundation. “Most people will go from that $ 200 or $ 300 a week to receive nothing“, dice Stettner.

With the termination of the programs at the end of the year, pressures will increase in many households in the country. The moratorium on evictions and mortgages are also scheduled to expire in December.

On Thursday, November 14, more than 742,000 people filed for unemployment benefits for the first time, registering an increase of 31,000 requests with respect to the previous week according to data from the Department of Labor. Other 320,000 applied for Pandemic Unemployment Assistance, a federal program for the self-employed and who do not qualify for regular benefits.

With the increase in infection rates in much of the country, experts predict that jobless claims will grow again unless Congress extends the benefits.

A week unemployment check amounts to $ 333 dollars that allows families to pay utilities and in some cases rent. According to the Century Foundation some 4.4 million workers will have exhausted benefits by December 26.

Related: What can you expect if Congress manages to pass a new stimulus plan from today until Presidential Inauguration Day on January 20?

Talks about a new stimulus check stalled in Congress before the elections on November 3. Although there is hope for a second stimulus check, the size and time when it could be deposited is unknown.

President-elect Joe Biden has asked Congress to “meet and approve an aid package for COVID-19”, however, any package that could be approved before the new members of the House of Representatives and the Senate take their positions , could be much smaller than the CARES Act.

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