The Day After Christmas, $12 Million Unemployed in the US Face Support Payment Suspension

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] CBS reported on the 18th (local time) that 12 million unemployed people in the United States will lose support the day after Christmas.

This is because two unemployment support programs under the CARES Act will expire on December 26.

The progressive research organization Century Foundation stated in a report released that day that pandemic unemployment support for freelancers and platform workers will affect 7.3 million people, and pandemic emergency unemployment compensation will impact 4.6 million people.

In addition, the Century Foundation added that 4.4 million people who lost their jobs early in the COVID-19 crisis are expected to exhaust the budget limits before the support programs under the CARES Act expire.

Andrew Stettner, a specialist in unemployment at the Century Foundation, said, "Those who were receiving $200 to $300 per week will see their income drop to '0'," adding, "This will have a significant impact on households and the overall economy."

Federal unemployment insurance benefits, which provided an additional $600 per week under the CARES Act, already ended in July, and many other COVID-related supports are also expiring at the end of the year.

Bob Schwartz, senior economist at Oxford Economics, said, "The end of the stimulus package will be a 'real test' for the economy."

He continued, "As COVID-19 infection rates surge nationwide and stricter quarantine measures increase restrictions, the environment will be set for unemployment to rise again," adding, "If Congress does not extend support, these people will lose their income."

This content was produced with the assistance of AI translation services.