Despite Encouraging News in June, Americans Still Need Boosted Unemployment
When countless businesses were forced to shut down earlier in the year due to COVID-19, it was clear that jobless claims would quickly skyrocket. And did they ever. April's 14.7% unemployment rate was the highest on record since the Great Depression, and back then, economists were worried that the jobless rate would climb even higher. Notably, the Congressional Budget Office estimated in May that the unemployment rate would be 15.8% during 2020's third quarter.
Since then, things have seemingly improved on the jobless front, as both May and June saw lower unemployment numbers than April, with reported jobless rates of 13.3% and 11.1%, respectively. But let's be clear: Double digit unemployment is still very bad news, and it's a clear sign that Americans need continued relief.
Under the CARES Act, which was passed in late March, those who are out of work are entitled to an extra $600 a week in unemployment benefits on top of their regular benefit. Thanks to that boost, many people without jobs have managed to replace 100% of their former income. Some have even snagged a raise. But that $600 weekly boost is set to expire at the end of the month, and as lawmakers fight over extending it, there's fear that June's so-called positive numbers could tip the scales in an unfavorable direction.
Source Fool.com
