Between February and April of 2020, U.S. employment declined by 22 million people (about 15 percent) as a result of the COVID pandemic. In response, the federal government introduced several temporary programs to lessen the negative impact of this decline. These emergency unemployment benefits (EUB) included providing program eligibility to many individuals who wouldnot otherwise be covered, such as contract and gig workers, extensions of benefit durations and a $600 weekly add-on for recipients.1 These initial programs were extended by the federal government through September 2021, with the only major adjustment being a reduction of the add-on to
$300 per week.
By spring 2021, following a major but incomplete rebound of employment, employment growth began to slow and job openings were steadily rising, reaching 9.6 million in May 2021, up 2.6 million from their pre-pandemic level. At the same time, some state governors voiced concerns that the historic generosity of EUB was contributing to businesses’ difficulty filling job vacancies. They announced plans to halt either some or all of these benefits several months before the programs’ completion in September. In total 26 governors ended benefits before September, with 20 halting participation between June 19 and July 3.
TL:DR The program intended to support people through a year of a gigantic crash in jobs throughout 2020 did exactly that.
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Between February and April of 2020, U.S. employment declined by 22 million people (about 15 percent) as a result of the COVID pandemic. In response, the federal government introduced several temporary programs to lessen the negative impact of this decline. These emergency unemployment benefits (EUB) included providing program eligibility to many individuals who wouldnot otherwise be covered, such as contract and gig workers, extensions of benefit durations and a $600 weekly add-on for recipients.1 These initial programs were extended by the federal government through September 2021, with the only major adjustment being a reduction of the add-on to $300 per week.
By spring 2021, following a major but incomplete rebound of employment, employment growth began to slow and job openings were steadily rising, reaching 9.6 million in May 2021, up 2.6 million from their pre-pandemic level. At the same time, some state governors voiced concerns that the historic generosity of EUB was contributing to businesses’ difficulty filling job vacancies. They announced plans to halt either some or all of these benefits several months before the programs’ completion in September. In total 26 governors ended benefits before September, with 20 halting participation between June 19 and July 3.
TL:DR The program intended to support people through a year of a gigantic crash in jobs throughout 2020 did exactly that.