At the beginning of the COVID-19 pandemic, unemployment hit its highest level since the Great Depression. Since then, unemployment has been steadily falling – but that decline has slowed.
The overall unemployment rate hit a high of 14.7% back in April, and has fallen to 8.4%. That reduction was frequently cited by Republicans in arguments for a limited 2nd round of stimulus – or none at all.
But the recent numbers seem to indicate more stimulus is needed.
Unemployment claims are holding steady – or even increasing! The national unemployment rate remains above 8%.
Those numbers look even worse when you compare different communities. Black unemployment, for example, hit a high of 16.6% in April – and has remained at 13.3%! The Black unemployment rate is DOUBLE the white unemployment rate.
The COVID-19 pandemic has shown how inadequate the United States’ unemployment insurance system is to handle a crisis of this scale, argues economist Peter Morici at MarketWatch. Many workers aren’t eligible, he says, and those who are receive too little money.
Also an issue: many who do qualify end up waiting for months to get the benefits to which they’re entitled.
Democrats in Congress have long pushed for a second round of stimulus, which would extend the $600 a month unemployment bonus, but Republicans continue to balk at the cost.