fbpx

Recovery from historic unemployment claims will take time

On Thursday, the U.S. Department of Labor released another set of weekly data on unemployment insurance claims that boggles the mind — more than five million Americans filed for unemployment insurance during the week of April 11.

Since March 16 in North Carolina, more than 580,000 workers have filed for unemployment insurance.

Policies like unemployment insurance are necessary now to provide much needed wage replacement so as to minimize the ripple effect of these job losses throughout the economy.

COVID-19 job losses are different than losses from other downturns in the sense that some people could be rehired to the same work when social distancing measures are lifted, but the loss of income now can ripple through a household budget in dangerous ways that put food, utilities, and housing at risk.

As policymakers do the urgent work of making sure our state unemployment insurance system can serve the workers of this state, they should also be oriented toward the long-term effects of job loss on people and communities.

The research is quite clear that job loss can have a lasting effect on people’s well-being and financial security.

Addressing this “economic scarring,” as economists describe these long-term impacts, should be as central to the response to COVID-19 as the urgent, near-term measures.

This is why a fourth package from the federal government that provides additional stabilization dollars for state and local governments and that provides direct stimulus and income supports to individuals is critically needed, and it is something we can afford to do given the long-run benefits.

This is why our state legislative leaders should be oriented toward legislative proposals dealing with issues not only in the near term but also establishing the policies and systems that will support recovery from this economic crisis over the long term.

Load More Related Articles
Load More By Alexandra Sirota
Load More In Commentary

Top Stories from NCPW

  • News
  • Commentary

Transgender people born in North Carolina can now change the gender marker on their birth certificates… [...]

WASHINGTON — President Joe Biden on Wednesday called on Congress and state legislatures to provide a… [...]

Former President Donald Trump was directly involved in efforts to pressure state officials in Georgia, Arizona… [...]

WASHINGTON — Maryland and Virginia politicians vying for the prize of a new FBI headquarters have… [...]

Whatever the National Rifle Association is paying for the votes in the U.S. Senate, it’s not… [...]

It’s a familiar childhood scene – perhaps even from your own. A group of cool, older… [...]

The post NC0RR Hurricane Matthew recovery at a snail’s pace appeared first on NC Policy Watch. [...]

Amazon and its lobbyists are claiming that passing Sen. Amy Klobuchar’s Big Tech bill would lead… [...]