FreedomWorks economist Stephen Moore discusses the rise in unemployment rates amid the coronavirus pandemic.
The number of Americans applying for state unemployment benefits has risen lower, but last week it continued to rise as the labor market struggles to recover from an increase in COVID-19 infections nationwide and new restrictions to limit the spread of the virus .
Figures released by the Department of Labor on Thursday show that 847,000 Americans first filed unemployment claims in the week ended Jan. 23, slightly lower than the 875,000 forecasters of Refinitiv economists.
The number is almost four times the level before the crisis, but it is far below the peak of almost 7 million reached when stay-at-home orders were first issued in March. Nearly 70 million Americans, or about 40% of the workforce, applied for unemployment benefits during the pandemic.
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The number of people still receiving unemployment benefits fell to 4.77 million, a decrease of about 203,000 from the previous week. The report shows that by January 9, about 18.28 million Americans received some kind of unemployment benefit, an increase of 2.29 million compared to the previous week.
Many more Americans are receiving unemployment benefits from two federal programs that Congress drafted in March with the adoption of the CARES law: one supporting self-employed individuals, gig workers, and others who are not usually eligible to receive benefits, and the others provide assistance to those who have exhausted their state benefits.
The federal government renewed those programs in late December with the enactment of a $ 900 billion emergency lending law, which provides a supplemental unemployment benefit of $ 300 a week, a one-time $ 600 stimulus test for most adults and new funding for a small business includes. rescue program.
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Top Democrats saw the emergency relief package as the tip of the iceberg, and President Biden unveiled a $ 1.9 billion stimulus plan that includes $ 20 billion for vaccine distribution, extended unemployment benefits at $ 400 a week until September and a third stimulus test worth $ 1,400.
“The third wave of the pandemic is showing signs of slowing down, but it is still too early to mention this current wave of the pandemic, especially with the prospect of new, more transferable variants on the horizon,” said Daniel Zhao, senior economist from Glassdoor, said. “Getting the pandemic under control and accelerating the spread of vaccines is the best economic stimulus the new Biden administration can offer.”