Republicans have touted the most recent jobs report - the national unemployment rate went down slightly - to bolster their claim that an extension of unemployment benefits is unnecessary, reports Forbes. Many experts, however, as well as Black Americans, whose unemployment rate actually went up, might disagree.
Millions are still filing new unemployment claims every week, according to the New York Times, and Jerome Powell, the chair of the Federal Reserve, cautioned that recovery would take years. Millions will remain unemployed, he estimates, “and there may not be a job in that industry for them for some time.”
Across the country, however, many currently-unemployed workers have to make a difficult choice.
In 22 states, COVID-19 cases are rising to their highest levels yet. Workers whose employers have reopened, but fear the risk of going back to work, could lose their unemployment benefits if they refuse.
NPR notes, though, that some employers may be flexible with workers, and some people - those with underlying health conditions or childcare needs that can’t be met - can likely stay on unemployment.
For the more than 40 million Americans who were permanently fired or laid off during the pandemic, however, the situation is potentially even more grim.
Across the country, workers have struggled to actually access the unemployment benefits for which they qualify. In Florida, Washington state, California, Kentucky, Illinois, and across the country, cash-strapped Americans have endured countless phone calls, long wait times, and issues with ineligibility as they try to access unemployment benefits.
Though many Americans still haven’t received benefits they’ve been owed since April, the $600 added bonus to state unemployment checks, part of the CARES Act passed in March, will expire at the end of July.
While the HEROES Act, passed by the House of Representatives, includes an extension of this benefit, it’s unlikely to pass in the Republican-led Senate. But not all aspects of the CARES Act will expire.
Standard state-provided unemployment benefits remain, and the Pandemic Emergency Unemployment Compensation and Pandemic Unemployment Assistance means that everyone who qualifies for unemployment will receive at least 39 weeks of the benefit.
A second round of stimulus is likely, even if the HEROES Act does not pass. Forbes reports that President Trump wants the next round to focus on creating jobs, especially in manufacturing. It could also include a return-to-work bonus - as in Idaho, where lawmakers are considering paying people $1,500 to leave unemployment and return to their jobs.
But some have decided instead to opt out of the traditional economy entirely.
For Black Americans, the COVID-19 pandemic is accelerating a move away from an economy that has historically discriminated against them even in good economic times. Many are embracing cooperative economics, or ujamaa, in the wake of the pandemic, though it actually has a long history in Black communities.
Only time will tell whether creative solutions like these will help communities weather a storm that shows few signs of abating any time soon.