Number of the Day
The New Year’s Unemployment Crisis, by the Numbers
The expiration of expanded unemployment benefits on January 1 will affect more than just out-of-work Americans
$150 Billion: That’s how much total income unemployed workers are expected to lose in the first quarter of 2021 after expanded unemployment insurance programs expire on January 1, according to a Deutsche Bank estimate cited by the Wall Street Journal. The resulting impact on consumer spending could “shave a percentage point off economic output,” the Journal noted.
When the pandemic’s spread in the U.S. caused a nationwide shutdown of many businesses, unemployment numbers skyrocketed — and the government responded, with Congress passing massive relief packages. Some details vary by state, but in general, this included adding 13 more weeks to the usual 26 weeks of unemployment pay, plus extra weekly payments of $600, eviction suspensions, a student debt pause, and other measures.
After the $600 weekly supplemental payment program expired in August, the impact showed up in weaker spending numbers, the Journal reports. And now efforts to extend the relief benefits that remain — and perhaps restore the $600 weekly additional payment, either in full or in part — have stalled…
