U.S. spending and income plummeted in states to stop emergency unemployment benefits early

According to one study, states in the U.S. early end of emergency unemployment benefits have seen a slight decline in unemployment but spending and incomes plummeted, a reality that could take place across the U.S. as subsidies programs end altogether.

Workers outside the New York City Office of Labor. Document image: Vietnam News Agency

First introduced in the economic relief, assistance and Security Act in March 2020 and renewed several times later, emergency subsidies have increased weekly unemployment benefits and expanded to free workers as well as long-term unemployed people.

However, the grant has been controversial in recent months, as critics say the grant leaves Americans reluctant to return to work even as the COVID-19 vaccine is widely vaccinated and businesses struggle to find enough workers. 

Officials in 26 states, mostly Republicans, announced an early halt to some or all of the subsidy programs that would end nationwide on Sept. 6.

Analyzing data from 18,648 people who received unemployment benefits, the study found that nearly 25% of employed by the end of July in 19/22 States ended the supplementary benefit program in June, compared with 22% in 23 states that continued to provide assistance.

However, research by Columbia University, the University of Massachusetts Amherst and the University of Toronto using data from financial services firm Earnin found that unemployment benefits fell by 2 278 a week and incomes fell by giảm 145 a week (20%).

The researchers said that when the pension program ends nationwide, spending could fall by about 8 8 billion in September and October. This decline can continue as workers need time before returning to work.

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