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20 Jan 2021

A bipartisan group of economists who worked for Presidents Barack Obama and George W. Bush recently proposed that Congress extend the unemployment “bonus” at $400 a week. That extra $600 in aid — sometimes called “enhanced unemployment” or “the unemployment bonus” — has become a major sticking point in negotiations over another big aid package. If you plan to apply for unemployment but haven’t done so yet, this weekend may be a good time since Washington has enabled provisions from the CARES Act. “It’s like, ‘Eat what you can, but not too much.’”. There aren’t enough jobs for people who need them, and unemployment aid has been cut back sharply. Below is a rundown of how the nation got into this predicament and why so many economists are calling for Congress to extend the amount in the range of $400 to $600. SEATTLE — Washington state enabled the CARES Act provisions this weekend, expanding unemployment eligibility and paving the way for an additional $600 in weekly benefits. Now that the extra $600 federal government aid has expired, unemployed Americans are back to receiving solely state aid. By allowing emergency benefits to expire, Congress and President Trump have effectively slashed jobless aid in the middle of a pandemic. In order to be eligible for it, individuals must have a weekly benefit amount of at least $100 per week from an approved unemployment compensation program and must certify that they are unemployed or partially unemployed because of the coronavirus crisis. By Jenni Fink On 7/14/20 at 11:48 AM EDT. An unintended side effect of the extra benefits was that many lower-earning workers received more income on unemployment than from their usual wages. Democratic-controlled Senate could reinstate extra $600 weekly unemployment Last Updated: Jan. 13, 2021 at 11:39 a.m. Many states also neglected to upgrade their systems, even though money to do so was included in a 2009 federal stimulus package. The study did not look at whether this is dissuading people from going back to work. “I found no evidence of any effect on labor market flows from more generous UI in May and June,” he said. Republicans say $600 is so high that people are opting to stay home and collect unemployment instead of going back to work. The extra $600 was initially agreed upon because, for an average worker, it made their jobless benefits equal to their previous pay. Republicans are correct that many people were receiving a higher wage from unemployment than they did at their jobs, but there is little evidence that the extra $600 was dissuading people from returning to work, according to five studies. Associated Press Connecticut’s labor officials are scrambling to reprogram their computers to handle the additional unemployment payouts. As the unemployment rate falls, the extra money would decline. By signing up you agree to our Terms of Use and Privacy Policy, Surgeon General resigns at Biden’s request. 20-137 Media inquiries: media@esd.wa.gov . The extra $600 in weekly unemployment benefits from the federal government expires in July. But the authors of that study told The Post they found no evidence that the extra money was dissuading people from working, and they encouraged Congress, especially Republicans, to act quickly on more aid of about $400. The extra unemployment benefits expire on July 31 and, so far, it appears an extension of the full $600 is unlikely to happen. D.C. to open more coronavirus vaccine appointments for seniors, health-care... Tracking the coronavirus vaccine, state by state. The latest: Biden unveils $1.9 trillion economic and health care relief package | Read the plan. Wednesday, April 15, 2020, 5 Trump policies likely to remain in Biden administration, Big Tech declares war: ‘Woke capitalism instead of freedom’. Some supported extending the full $600, while others said it should be reduced slightly, to $300 or $400. That would replace the wages of most non-white-collar workers. Democrats want to extend it through the end of the year. Problem is, the additional $600 from the federal government extends the payments into four digits. Share. There are posts on social media sites such as Reddit where some people talk about how “the past 4 months have been the happiest time of my life” because they have been earning more money on unemployment. Most economists surveyed last week by The Washington Post overwhelmingly urged Congress to quickly extend unemployment aid and were baffled why lawmakers had not acted. In normal times, the average unemployed worker gets $333 a week in state government aid, according to the Center on Budget and Policy Priorities. - Roughly two-thirds use a near-obsolete programming language, COBOL, that dates to the 1970s. In a June op-ed, the authors of the Chicago study advocated for Congress to refine the unemployment formula after the $600 expired. Lawmakers have known for months that it would expire at the end of July. by Eddie Scarry | July 11, 2020 07:50 AM Print this article. Extra $600 in unemployment benefits now available in Washington state If you plan to apply for unemployment but haven’t done so yet, this weekend may be a good time since Washington has enabled provisions from the CARES Act. And she’s asked her landlord to defer her rent. And the slow and fitful distribution of payments points to the antiquated information technology that many states still rely upon for unemployment payments. That means about 1 in 5 workers who had a job before the pandemic are unemployed. More than 31 million Americans received unemployment aid from the government in July, and their weekly checks just got a lot slimmer. She turned herself in ... not enough to pay for food, medicine and rent, overwhelmingly urged Congress to quickly extend, have held up aid or put them on a fraud watch list. Congress and the White House appear unlikely to reach a swift agreement on extending the $600 in extra weekly assistance the federal government has provided. The Post spoke to workers from across the socioeconomic spectrum about what the extra $600 infusion has meant for them. Their proposal was to have the federal government reimburse about 45 percent of a worker’s prior pay (which would then be added to the roughly 40 percent a worker already received from the state). N.J. unemployment: extra $300 checks could arrive by weekend after problems processing payments . Where is my extra $600 in unemployment benefits? “There’s no relationship between UI generosity and labor market outcomes so far.”. | Read the summary, Some Americans won’t get their stimulus checks until they file their 2020 taxes. Across the country, state officials say they’re working as fast as they can to process and distribute benefits. She acknowledged that the aging COBOL system has made it “challenging” to handle the federally provided aid. What the evidence shows is that the extra money has kept many families out of poverty during the pandemic and provided a stimulus to the overall economy as people have spent the aid money. An unintended side effect of the extra benefits is that many lower-earning workers are receiving more income on unemployment than from their usual wages. Five studies have looked closely for any evidence that the extra $600 a week has caused workers to refuse to return to work, and they have not found any evidence that this is occurring in a widespread way. It’s a lot of work and would take time to implement because it hasn’t been done before. Every week, unemployed workers have to log on to their state Web portals and fill out forms certifying that they haven’t found a job. In order to be eligible for it, individuals must have a weekly benefit amount of at least $100 per week from an approved unemployment compensation program and must certify that they are unemployed or partially unemployed because of the coronavirus crisis. In normal times, the lower payments are meant to encourage people to quickly look for a new job. The most important news stories of the day, curated by Post editors and delivered every morning. ... [+] Apartment industry experts fear rent payments will … Some sought to reduce jobless-aid expenses. As a single father with custody of a 16-year old son, “I can only do so much, which he understands,” Conrad said. Here's what unemployed workers in Washington and Idaho should know. and View Comments, Terms of Use / Privacy Policy / Manage Newsletters. The typical unemployed American was receiving about $930 a week from late March to late July. Follow. South Dakota isn't applying for it. HARTFORD, Conn. (AP) - The bills are mounting for Justin Conrad, who lost his warehouse job three weeks ago and is anxiously awaiting his first state-provided unemployment check. But those efforts were hampered when newly elected governors occasionally didn’t want to collaborate with other states, Evermore said. Parents who are forced to leave a job to take care of their children while schools or day-care centers are closed are supposed to qualify for pandemic unemployment aid. This recession is already deep. For Alabama, it’s $114, while Arizona clocks in at $117. The federal government opted to add $600 a week to ensure that the average worker had a 100 percent wage replacement. Trump attorneys pursuing voting fraud claims snatch defeat from jaws of victory. After days of delays, the Department of Labor hopes to process the new $300 supplemental checks by this weekend, a spokeswoman said. More states finally paying $600 extra in unemployment aid. This is essentially a reboot of the CARES Act program that provided $600 per week in extra federal unemployment … 4d. Evermore said such upgrades are complicated by the fact that states have varying eligibility standards and benefits amounts, making off-the-shelf software solutions difficult. That’s resulted in technology problems that are rare in the private sector. If Trump tried it, it probably would lead to legal challenges, which could further delay payments to the unemployed. Trump threatens executive actions as coronavirus relief deal remains elusive on Capitol Hill. “With nothing coming in and very little anyone can say, it’s hard.”. States have so far indicated that unemployed workers will not need to file a separate application for an extra $300 in weekly unemployment benefits. In normal times, gig workers and the self-employed do not qualify for unemployment aid, but Congress made an exception in the Cares Act. Here’s how to... Florida police were after a covid-19 data scientist. Report: Trump wants to create new political party In some states, for instance, if applicants forget their password to their state’s online system, it must be mailed to them, Evermore said, prolonging the difficulty of completing a filing. Quiz: Can you pass a U.S. Constitution test? They include Mirian Carpio Carpio, 34, who was laid off a week ago from her housekeeping job at The Marquette Hotel in downtown Minneapolis. The 50 biggest U.S. companies have turned a profit since the pandemic. The idea was to cover most of the prior wages. A program that offered an extra $600 per week in unemployment benefits expired on Aug. 1. Many suggest that a compromise could be to keep the $600 … AP Writers Kelli Kennedy in Fort Lauderdale, Florida, Bobby Calvan in Tallahassee, Florida, and Jeff Baenen in Minneapolis contributed to this report. But several large states - among them Washington, Colorado and Wisconsin - … They found that the typical wage replacement rate was 134 percent. Erik Sherman Senior Contributor. The program was established after the Federal Pandemic Unemployment Compensation’s $600 weekly benefit expired two months ago. With Mixed Earner Unemployment Compensation, a person who made more money from self-employment or a contracting job -- that requires a 1099 form -- could receive an extra … On Dec. 27, 2020, the federal stimulus that changes and extends CARES Act unemployment benefits was signed into law. The issue stems from running the new federal program simultaneously with the program that distributed the supplemental $600 checks to … Florida’s unemployment benefit system has struggled mightily to keep up with the crush, even resorting to the use of paper applications. Goodbye, jeans. Federal Pandemic Unemployment Compensation (FPUC) is a temporary program that provides an extra $600 a week on top of your regular unemployment insurance benefit. The extra $600 was initially agreed upon because, for an average worker, it made their jobless benefits equal to their previous pay. The National Association of State Workforce Agencies warned Congress that it would take most states eight to 20 weeks to set up this new program to attempt 70 percent wage replacement. 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