Thursday, November 28

4 million Americans will lose unemployment benefits on June 12


One in four American workers who are unemployed will lose their unemployment benefits early in 25 states, the majority ruled by Republicans

4 millones de estadounidenses perderán beneficios de desempleo el 12 de junio
The direct impact on beneficiaries has not yet been measured, but experts suggest that it will not only affect those who receive the supports, also to the retail stores.

Photo: Pexels

Luis Diaz

Since last month several Republican governors warned that they would abolish federal unemployment support in their states in order to pressure their citizens to get a source of work and thus not depend on support as their main income.

Support federal unemployment benefits represented a weekly assistance of $ 300 dollars to the beneficiaries, this aid was independent of that received by state, which represented a global weekly support of $ 600 dollars net . According to the Republicans, this figure is very high.

Given this, the governors chose to cut off federal support, based on the figures presented for job creation corresponding to April by the United States Department of Labor, citizens were not doing their part for fill available vacancies in various areas .

Based on the positions of governors who will cut unemployment benefits, Andy Stettner, a labor expert at the Century Foundation, told CBS that one in every 4 American workers who are unemployed “will lose their benefits early due to the actions of these 25 states. ”

Andy Stettner assured that this movement is equivalent to some four million workers who face the end of all or most of their aid for unemployment. This segment of the population only have one more week of unemployment assistance, in case they do not have a work will be left without income .

But According to the experts, the beneficiaries of the support will not only be affected by this decision, since taking into account that the people who receive the unemployment incentive do not have other income than the money that is provided to them, in most cases , is busy to buy commodities .

For this reason, there may be a negative impact on retail store sales, especially where They sell food and essential products, in the 25 states where support is being cut and it may also have an impact on other areas of commerce for this reason the decision made by the Republican governors may not be so beneficial .

In contrast to these measures, the Federal Reserve of San Francisco published earlier this week that the position of eliminating aid to combat the shortage of workers and stimulate hiring is not a solution, since the additional unemployment benefits do not prevent Americans from accepting new jobs .

The FED stated that the benefits are not enough to replace the benefits that every citizen can have when employed , so in the long term it would not be profitable . Despite this, unemployment benefits can be a respite for those who do not have a source of income as they return to the workforce.

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