How Unemployment Insurance Abroad Compares To The U.S. Description video: The number of Americans filing for unemployment insurance soared to 38.6 million this past week, even as some states and cities attempt to re-open their economies from Covid-19 lockdowns. Other […]
How Unemployment Insurance Abroad Compares To The U.S.
The number of Americans filing for unemployment insurance soared to 38.6 million this past week, even as some states and cities attempt to re-open their economies from Covid-19 lockdowns. Other hard-hit countries, like Spain and Germany, have a different way of handling unemployment insurance compared to the patchwork system in the United States. Here’s how the social safety net for workers in America compares to other systems around the world.\n\nCorrection (May 23, 2020): The title for Jeremy Pilaar misstates his current role. He’s a former fellow at the San Francisco Affirmative Ligation Project.\n\n» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC\r\n» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision\r\n» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic\r\n\r\nAbout CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.\r\n\r\nConnect with CNBC News Online\r\nGet the latest news: https://www.cnbc.com/\r\nFollow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC\r\nFollow CNBC News on Facebook: https://cnb.cx/LikeCNBC\r\nFollow CNBC News on Twitter: https://cnb.cx/FollowCNBC\r\nFollow CNBC News on Instagram: https://cnb.cx/InstagramCNBC\r\n\r\n#CNBC\r\n\r\nHow Unemployment Insurance Abroad Compares To The U.S. System
American unemployed may be affected by the cessation of special payments
Americans receiving heightened unemployment benefits due to the coronavirus pandemic were spending more than they did during employment. This adds to fears of a sharp drop in spending after the end of emergency benefits..
A weekly $ 600 boost added to standard unemployment benefits helped families spend 10% more than before the pandemic, according to JPMorgan Chase Institute Research.
Researchers analyzed transactions of 61 thousand families who received unemployment benefits from March to May. They found that spending decreased for all households as the virus spread and led to business closures, but then rose after receiving government aid..
This contrasts with the usual recession, where families receiving benefits typically cut spending by 7%, as regular payments for the unemployed are only a fraction of a person’s previous earnings..
Analysis shows how additional premiums help support the U.S. economy and consumer spending during the pandemic.
It is estimated that over 30 million Americans are receiving unemployment benefits. All these people may find themselves in dire financial situations at the end of July, when the program of special support for the unemployed will end..
«We assume that the expiration of the deadline will lead to significant cost reductions, potentially negatively affecting both households and macroeconomic activity.», – experts write.
The data also reflects the financial hardships faced by families who had to wait for benefits due to the huge number of applications across the country..
People who waited several weeks to get paid cut their expenses by about 20%. However, they recovered immediately after receiving payments.