For millions of Americans, unemployment benefits become a financial lifeline. Moreover, that their employers shut their doors to help the stem the spread of the COVID-19.
As a record number of workers try to apply for benefits, the growing tsunami of layoffs has overwhelmed state unemployment systems. Moreover, the situation is not likely to improve anytime soon.
As Congress passed a historic expansion of jobless benefits, the bottleneck comes. Before the checks can start coming, applicants need to file their claims first.
All in all, the situation is tough. Governors have started to apologize to frustrated people. Moreover, people can not file their first claims, and they must wait longer for their money.
Kali Grant is a senior policy analyst at the Georgetown Center on Inequality & Poverty. She said that unemployment benefits are essential for supporting workers. Moreover, they are trying to make ends meet and stay in connection with the labor market.
The rules of the unemployment benefits vary by state. Nevertheless, typically employees must have lost their jobs through no fault by their country. They must have a minimum level of prior earnings from the last employment. Moreover, they must be ready to take new positions immediately and be active in the job-seek. States must now waive the latter two requirements because of hundreds of millions of Americans are staying at home. Moreover, many states have closed nonessential businesses.
Who is eligible for the benefits of unemployment varies state by state. Not all part-time workers are qualified. The self-employed and independent contractors typically do not do either. Nevertheless, Congress has created an unemployment assistance program of a pandemic that temporarily is covering them.
Chad Stones, Chief Economist at the Center on Policy and Budget priorities, shared his sentiment. He said that how much you will receive depends on your recent earnings and the state in which you live. Benefits are ranging from about $200 to $550 a week on average. Again, it depends on the country. The bonus usually replaces about 40% of one’s wages. Nevertheless, Congress just gave those weekly checks a considerable boost.
To file your initial claim and have it approved, it will take a much longer time than usual. It is because of the crush of applications. Despite that, once it is done, your first payment usually arrives in your bank account for around two or three weeks via the direct deposit. Thanks to Congress, you do not have to wait a week for benefits to start.
You can appeal in case you are found ineligible. Nevertheless, these days that process will likely also take longer.
Congress made several unprecedented changes to the unemployment program of insurance, in its recent stimulus package.
On top of their state benefits, jobless workers will soon get an extra $600 for up to four months. Thus, it will crucially boost payments of the people.
On top of state programs, lawmakers also added up to 13 weeks of extended benefits. It varies between 12 and 28 weeks.
That is a brief examination of the unemployment benefit.
- Trading Instrument