2021 Unemployment In The United States
With signs continuing to emerge that the US economy is worse than the Coronavirus pandemic. FocusEconomics Consensus Forecast panelists reported that the average unemployment rate in 2021 is forecasted to be at 6.2%. With, Hawaii having a rate of 9.3% currently.
There are many indicators that the US unemployment rate is on the rise. Claims remain dismal at about 11 million in January 2021. The Labor Department said recently that 1.15 million workers filed initial claims for state benefits. During the first full week of the new year!
The January report also continues to show stark racial disparities. With those facing the highest rates among African Americans (9.9%) and Hispanics (9.3%) and the lowest rates among whites (6%).
Pandemic Unemployment Assistance
2021 PUA (Pandemic Unemployment Assistance) grants unemployment benefits to self-employed workers. Who are looking for part-time work or who are otherwise not qualified for the Regular Unemployment Insurance Program.
Pandemic Emergency Unemployment Compensation
The PEUC (Pandemic Emergency Unemployment Compensation) program provides unemployment benefits to people who have exhausted their regular unemployment benefits payments.
The Pandemic Unemployment Compensation (PUC). Provides an additional $300 per week for unemployed people between December 27 and March 13, 2021.
If you have exhausted your benefits and are worried that you are running out of money. There are expanded benefits that are funded by the federal government. That provide you with more than the maximum number of weeks your state provides. Additional weeks of benefits may be available through the PEUC or (EB) Extended Benefits Program.
More Help Is In The Works For The Unemployed
The President-Elect is also calling for an increase in unemployment benefits of $400 a week. For the 18 million Americans currently on benefits, and he wants to extend the payments until September 2021.
Biden’s American Rescue Plan would provide a $400-a-week supplement to people receiving unemployment benefits in their state. It would include people who have already exhausted their weekly state benefits.
Biden’s plan would provide direct income-related stimulus assistance to individuals. He would provide an additional $100 a week to ensure that the unemployed receive more help for longer.
The unemployment benefit would grow by an additional $100 weekly at first. As it would be added to the $300 a week extra now available until mid-March.
Biden would extend the emergency benefit programs, and the added compensation, through September. 2 key points relating to Unemployment benefits and the new measures being brought to the table by the President.
- Unemployment benefits replaced about 38% of pre-layoff wages on average, in the third quarter of 2020. According to Labor Department data.
- An extra $400 a week would bump that wage replacement rate to 86%.
Biden has also directed the Treasury Department to consider a series of measures to reach an estimated 8 million people. Who may have missed their stimulus because they did not file their taxes as normal.
President-elect Biden has the power to restore aid and implement other proposals to help the unemployed, but he will need congressional help for them. Biden often speaks of a desire for bipartisanship, and some elements of his plan, including the stimulus package, could face a vote in the House or Senate.
Sluggish Economic Recovery
A deflation trap is starting to take hold. Sickening the economy. It is similar to what happens to an organ that cannot absorb the nutrients it needs to function. Sorry for the gross comparison!
As the economy fails to grow, more jobs will be lost and the corresponding rate shoots up. As this happens, it forces down investment levels. This leads to low economic growth. The answer to a stagnant economy is growth.
With the US facing a future of low or negative inflation and joblessness. The Federal Reserve must do whatever it can to keep rates low to help support economic growth. It is holding the mortgage market accountable by keeping rates at current levels.
Conclusion
The economic forecast is hopeful at best. Consumer spending in the US has picked up recently (although minimal) and this bodes well for consumers. Especially in terms of increased job opportunities. Other indicators that the US outlook is bright include industrial production, durable goods orders, and wholesale inventories.
