For tens of millions of Americans receiving unemployment benefits, additional payments in the amount of $600 will end sooner than expected. This writes CNBC.
Weekly payments in the amount of $600 from the Federal compensation program for unemployment was introduced by Congress within the law CARES, adopted at the end of March due to overcome the impact of the pandemic COVID-19.
Americans are entitled to unemployment benefits, receive an additional $600 on top of what they usually receive in the framework of the programs of benefits from States. And yet this Supplement is, by law, be completed “before or July 31, 2020.”
31 July falls on a Friday, which is a problem because States typically pay unemployment benefits on a weekly cycle, which ends on Saturday or Sunday. But because of the wording of the Law CARES, it means that the United States will cease additional payments in the amount of $600 on 25 or 26 July (depending on how you configured the weekly payments for each state) and not at the last day of the month, as expected by many.
“If a week of payment ends on July 31 (Friday), then $600 may not apply to this week, since most benefits are paid at the Saturday or Sunday,” says Michele Evermore, a senior political analyst for the National project of the employment act. Evermore adds that she was unable to find any state that pays unemployment benefits on Friday.
According to the Department of labor, about 33 million Americans still receiving unemployment benefits or are awaiting approval to receive it. Thus, as soon as the extra $600, unemployed Americans will be compensated by unemployment insurance, which generally pays their staff. Its size can vary greatly depending on the state. Last year, the labor Department reported that unemployment corresponded to about 45% of the average wage at the national level.
In dollar terms, according to estimates by the Brookings institution, the average weekly payment was $387 before the pandemic. In Mississippi, for example, payments averaged $215 per week, while in Arizona is $240 a week. And the residents of Massachusetts earned an average of $550 a week.
“This will be a real shock for people, especially in States such as Arizona, where the amount is $240 per week, says Evermore. — I doubt that someone can afford to rent a house in Phoenix for that kind of money.”
“I think most people think $600 will be cancelled when they are not unemployed, and it will not affect them. But when 30 million more will receive an extra $600, this will have an effect on the entire economy,” says Evermore.