Almost half of all jobs lost during the pandemic coronavirus may not recover after sickness statistics will decline, writes Fool.com.
Flash COVID-19 clearly dealt a blow to the US economy, plunging it into a deep recession causing a sharp rise in unemployment. The number of applications for unemployment benefits reached a record in April, and although in may and June the situation has improved slightly, the new restrictions can lead to even higher unemployment in the coming months.
Unfortunately, the rise in unemployment may coincide with the end of the payment of weekly benefits in the amount of $ 600, which kept millions of Americans afloat in the last few months. This increase, under the March Law CARES, expires at the end of July, but due to the fact that the States pay their unemployment benefits weekly cycles, for most of the unemployed allowance, in fact, already ended.
Meanwhile, lawmakers are preparing to introduce a new package of Federal assistance in connection with the crisis COVID-19, and extended unemployment benefits — its important part. But the extension of the 600-dollar payments, is unlikely to happen. The head of the U.S. Treasury Steven Mnuchin said that additional unemployment in the future will be 188-310 dollars a week.
Why not extend the payment for the full amount of $ 600? Lawmakers say that this is a deterrent for people to return to work, as some Americans are getting more money unemployed than working. Another argument against the increase is that jobless claims on unemployment that we are seeing now, are a temporary problem that can disappear when the flash COVID-19 will decrease or will become available effective vaccine.
Of course, everyone wants the current crisis of unemployment was temporary. But new data show that a frightening number of unemployed Americans, in fact, may not recover their jobs after the completion of the pandemic.
How many jobs will be lost
In April, 78% of families were left without work, believed that this situation will be temporary. But now 47% believe that job loss is likely to be permanent, according to the Center on public relations of the Associated Press-NORC. Overall, about 10 million workers might need to find a new employer after the pandemic ends, and some may have to switch to another profile or even to learn a new profession.
But meanwhile, the pandemic is still far from complete, and as long as the situation does not improve, the unemployed may require assistance for a long time. In may, democratic lawmakers have proposed extending the weekly increase in allowances to $ 600 until January 2021. The HEROES act, which calls for the expanded aid, stalled in the Senate without a chance for adoption. And while Republicans are also calling to increase unemployment benefits in its new aid package, it is unclear how long this promotion will remain in effect.
In any case, if almost half of the jobs that were lost during the crisis COVID-19, really will be gone forever, many people will need assistance in mastering new skills and finding ways to return to the ranks of the working. It is hoped that the legislators recognize this need and allocate the funds.