Millions of Americans are losing jobless benefits on Labor Day
More than seven million unemployed people are losing jobless benefits Monday as three federal programs for people who lost work during the pandemic expire. Another three million people are losing a $300 weekly boost to their state unemployment benefits.
While President Joe Biden has said states can use federal relief funds to extend the assistance programs after Labor Day, none are taking him up on the suggestion, CNN reports.
Friday's August jobs report showed that U.S. employers added just 235,000 positions during the month, falling far short of the 720,000 economists had expected. There are some 10 million jobs currently available in the United States.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Will pulling the plug on the jobless benefits nudge people back into the workforce? Not necessarily. As CNN notes, in states that ended the benefits early, the labor markets didn't see much improvement, suggesting the problem comes down to more than people preferring to collect government checks than get a job. Millions cite childcare problems as their reason for not returning to work; others say they're afraid of contracting or spreading COVID-19.
Indeed, the ending of the jobless aid comes as a coronavirus surge driven by the highly infectious Delta variant threatens to derail the economic recovery. "Ultimately, the Delta variant wave is a harsh reminder that the pandemic is still in the driver's seat, and it controls our economic future," said Daniel Zhao, senior economist at jobs site Glassdoor.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
Puppet shows, pagodas and pho: a guide to Hanoi
The Week Recommends Vietnam's capital city blends the ancient with the new
By Catherine Garcia, The Week US Published
-
'There are benefits, but not acknowledging them would tell only half of the story'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
What Trump's win could mean for Big Tech
Talking Points The tech industry is bracing itself for Trump's second administration
By Theara Coleman, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Why are older workers staying on the job?
Today's Big Question And what does it mean for younger workers?
By Joel Mathis, The Week US Published
-
US job growth revised downward
Speed Read The US economy added 818,000 fewer jobs than first reported
By Peter Weber, The Week US Published
-
Are we getting a 'hard landing' after all?
Today's Big Question Signs of economic slowdown raise concerns 'soft landing' declarations were premature
By Joel Mathis, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published