Unemployment, expiry of benefits and uncertain future

Currently, the unemployment rate stands at 5.2%, which is higher than its pre-pandemic level of 3.5%. While some may point to a hiring boom seen over the summer, it should be noted that around 5.3 million fewer people are still in the workforce than before the pandemic.

Indeed, economists are sounding the alarm as the spread of the Delta variant casts a shadow over the future economic outlook. According to Oxford Economics, forecasts of Global economic growth in 2021 has been reduced from 6.5% to 5.9%

“Uncertainty and hesitation may ultimately lead to a slower recovery from here than our benchmark assumes”, wrote Ben May, director of global macro research at Oxford Economics, in the report.

Simultaneously, there was also the question of 9.1 million people lose their increased unemployment benefits on Labor Day, with the expiration of federal benefits. The importance of this cannot be overstated as around $ 5 billion in weekly benefits that helped the unemployed pay for groceries, rent and other essentials has now been cut.

All in all, the latest round of $ 1,400 checks is now a ditch as other stimulus measures come to an end. Many Americans are now forced to sit back, wait and hope as they continue to struggle with a lack of jobs and a weak labor market. There are actually over 2.8 million people who have signed a Change.org petition. began last year calling on lawmakers to pass legislation for monthly recurring payments of $ 2,000.