June saw some additional jobs in the US and unemployment fell as of early July, but CNBC advised pausing on any celebration just yet, saying that “The employment crisis is still worse than any time since the Great Depression, the country’s worst economic downturn in its industrial history.”

The unemployment statistics in our country right now are really scary – especially for individuals and families that see a looming deadline of July 31 for the supplemental $600/week provided by the Federal Government through the CARES Act put in place in March. There are discussions on extending these benefits as many families have not been able to replace their incomes or find new employment opportunities, but it doesn’t seem like anything has been finalized there yet. Congress is in the middle of a variety of options:

• Discontinue the additional $600/week but allow those on unemployment to continue to file and receive their state benefits (usually up to 26 weeks or possibly extended up to 39 weeks by The CARES act)
• Send out additional stimulus checks (Congress is currently exploring a $X Trillion stimulus package)
• Extend the additional funding (on top of the weekly amount allotted by state) but cut it from $600 to $200
• It’s also been put on the table in the House of Representatives “The Heroes Act” to extend the additional $600/week until January 2021 ($3 trillion).

There are some additional benefits that are available (different than the funds by the CARES Act), but you may have to reapply for them. So, make sure to check your state’s unemployment pages and your filing status. Some states do not require you to reapply and you can continue on with extended benefits.

According to CNBC, “The additional aid expires after the end of the year. (This is a different program than the one paying an extra $600 a week through July 31.) For some reason, the [Department of Labor] has taken the position that people have to file for the additional PEUC benefits,” said Michele Evermore, a senior policy analyst at the National Employment Law Project.”

No doubt that this can cause additional stress and uncertainty especially when you have questions about your filing and are unable to get through to someone on the phone. With the way that the unemployment cycle is setup, technically July 25 is considered the last date for that cycle (and July 26 for New York), so be sure to check and see what the next steps are for you if you are currently filing.

The rest of the world watched as the United States dramatically reopened “the economy” last month. Now, it seems we’ve changed our minds about that.

The White House has repeatedly said that it will be up to individual states to form their own pandemic response plans moving forward. But letting local governments devise their own solutions has produced large gaps in their preparedness, as well as profound confusion around the best practices for balancing the country’s public and economic health.

California, which represents the largest economy in the US and the fifth largest in the world, was one of the first states to put serious quarantine restrictions in place. The decision to relax those orders only came after anti-lockdown protestors demanded that Governor Gavin Newsom reopen the state’s beaches, businesses and churches. Newsom may now regret this capitulation as California just called for a second round of statewide lockdowns.

Other state legislators are slowly following their lead, as the threat is becoming very dire in some places. Florida, for instance, is now a global hotspot for COVID-19 and Miami is being called “the new Wuhan”. The state is also currently struggling against another wave of unemployment, partly because their economy is heavily dependent on summer tourism (which has persisted despite the spike in cases, but not nearly at pre-pandemic levels).

Florida, California and Texas are altogether responsible for 20 percent of all new COVID-19 cases globally.

Every state is fighting two battles here. Coronavirus relief efforts in the US are still seriously underfunded, and most health organizations here lack the resources to effectively test and treat their communities. But the problems that have emerged for workers and small business owners, like evictions and layoffs, have also been devastating in their own right.

In essence, the United States reopened in an effort to curb the nation’s financial freefall and ballooning unemployment. Economists predicted at the beginning of July that reopening would allow the US to avoid a recession, and all would go smoothly. These projections likely did not account for a spike in cases that would halt this economic rebound.

That’s not to say the circumstances here haven’t improved at all over the past months; currently there is no acute shortage of ventilators, and doctors have had some time to refine their strategies for treating the virus. Overall, the national unemployment rate is slightly declining, while working from home is going so well for companies like Twitter and Facebook that they will be permanently switching much of their staff to remote work.

By comparison, though, New Zealand took the pandemic much more seriously than the US did, and they are objectively in a better position now in all respects. Prime Minister Jacinda Ardern cracked down hard and early, closing the country’s borders completely, and instituting rent freezes nationwide. As a result they have virtually eradicated COVID-19 within their borders. A report from S&P Global also expects New Zealand’s economy to recover quickly compared to the rest of the world.

While this tradeoff seems like a zero sum game – as if we have to pick either our health, or our wealth – it is not. In fact, we could very well end up with neither if our lawmakers don’t proceed with caution.

46 million Americans have filed for unemployment in 2020 as a result of the current pandemic.

In April 2020, the United States saw its highest unemployment rate, at 14.9 percent, since 1933’s Great Depression. 46 million Americans lost their jobs and were forced to file unemployment claims after closures of workplaces were deemed necessary by government officials in response to Covid-19. Since mid-March, 2.7 million, a staggering 13 percent of its population, filed for unemployment in Texas. In hopes of preventing what would have been a devastating economic crisis, federal representatives created a relief package to aid states in taking care of its citizens. Now, states like Texas are demanding that 46,000 unemployment claimants give back any overpaid money they received.

Yes. You read that right.

Texas overpaid its citizens by $32 Million.

I hate to break it to you Texas, but that sounds like a YOU problem. It’s one thing to demand a refund of money given if the unemployment claimant falsified claim information, it’s another thing to request overpaid money from someone who, now dependent on the government, had no idea they were receiving any extra cash. One could however, argue that between the $600 per week given as a result of the Pandemic Emergency Unemployment Compensation passed under the CARES Act, in addition to regular benefits received, many Americans were and still are receiving well over their normal paycheck. This may be true, but for many others, unemployment benefits do not match their normal paycheck. Even so, stay at home mandates and closures of stores, parks, gyms and schools lead to unplanned spending!

A pack of 50 face masks cost $30 on Amazon compared to the normal $8. School closures obligated parents to stock up on school supplies, have food for lunch in the house, buy art, music and outside activity supplies. As many employers have lost the ability to provide health insurance for unemployed workers, a quick trip to the Emergency room will cost you an arm and a leg.

This is not to say that it doesn’t suck for Texas that they overpaid on benefits, but, it’s also not most of those claimants faults. Chances are, any extra money is long gone and to expect people to come up with money they never knew they would owe back…is rude, quite frankly! Doing so also defeats the purpose of unemployment benefits in the first place, which is to help keep afloat those who lost their jobs through no fault of their own.