More than 1.4 million laid-off Americans applied for unemployment benefits last week
Some who have lost jobs because of COVID still have not filed for unemployment benefits, even though they’re eligible.
Money in jobless people’s pockets can stimulate the economy, but longer unemployment payments could slow a recovery, experts say.
They have been a lifeline for laid-off workers. They also boost demand and enable businesses to focus on staying afloat.
One idea for replacing the current $600-a-week benefit is paying workers a percentage of their past wages.
If the $600-a-week pandemic payment disappears, many may have trouble covering their basic expenses.
As many as 3.2 million jobs were added by the federal Paycheck Protection Program, but the long-term effect is unknown.
They’re divided on whether and how to extend emergency pandemic unemployment benefits.
The rise in weekly jobless claims to 1.4 million underscores the outsize role the unemployment insurance system is playing as a safety net.
Economists say the additional $600-a-week benefit has boosted the whole economy and contributed to job growth.
