Economists Urge Extension of Fed Unemployment Boost
Eric Galatas, Public News Service – NE
LINCOLN, Neb. – If Congress does not extend enhanced unemployment benefits – the $600 per week meant to help Americans who lost jobs due to the novel coronavirus pandemic’s economic fallout – more than five million jobs would be lost, including more than 1,500 in Nebraska.
Heidi Shierholz, senior economist with the Economic Policy Institute, said the benefit has helped millions pay for food, rent and other essentials. She said cutting off assistance will also make racial inequality worse.
“Because Black and Brown communities are suffering more from this pandemic, both physically and economically,” said Shierholz, “as a result of historic and continuing systemic racism.”
Workers of color who file for unemployment are much more likely to have their claims rejected, according to analysis by the Bipartisan Policy Center. White workers have received 78% of all unemployment dollars, compared with 20% for Black and Latino workers.
Critics of extending benefits have said they believe it’s a disincentive to work, and have noted some workers get more in unemployment than they did on the job.
A new Yale University study found that lack of child care and the risk of contracting COVID-19, not unemployment benefits, were primary factors preventing people from returning to work.
Shierholz said with unemployment at historic levels, now is not the time to cut off assistance to families.
“Right now there are 14 million more unemployed workers than there are job openings,” said Shierholz. “So millions will remain jobless no matter what they do. You cannot incentivize people to get jobs that aren’t there.”
Nearly 30 million Americans currently are receiving unemployment insurance. The previous high, during the Great Recession, was roughly 12 million.
Senate Majority Leader Mitch McConnell has scheduled a debate this week on federal unemployment benefits that expired Saturday.
