08/21/2020
July 22, 2020. California Association of Realtors article....
The Economy & Your Finances: Unemployment rises,
stimulus package negotiations begin
The U.S. economy — which began recovering from the first wave of coronavirus
shutdowns in May — is stalling again. Several large employers have announced layoffs,
out-of-work Americans are becoming more pessimistic about getting their jobs back, and
roughly one in five American workers are collecting unemployment benefits. Last
Thursday, the Labor Department reported 1.4 million new applicants filed for
unemployment last week, an increase from 1.3 million in the preceding two weeks.
In California, unemployment claims rose last week to their highest level in three months;
in some cases, those claims were from workers initially laid off in March or April, brought
back in May or June, and then let go again with the most recent surge of cases. In the
past three months, California has seen more unemployment applications than it did
during the entirety of the Great Recession. Members that need to reopen a PUA claim
with EDD can use C.A.R.’s new Step-by-Step Guidance for Reopening a Claim.
Americans receiving unemployment — both traditional and Pandemic Unemployment
Assistance (PUA) — received their final $600 weekly boost from the federal government
for the week ending July 25. While the United States Senate is meeting this week about
another stimulus package, the GOP plan unveiled Monday would replace the $600 per
week with 70 percent of a worker’s previous wages. Those on unemployment would
receive a reduced sum of $200 extra per week until October, when the 70 percent wage
replacement limitation (up to a maximum of $500 per week over the state benefit) would
take effect.
The proposed $1 trillion plan would also send checks of $1,200 and $2,400 to individuals
and couples respectively, using the same qualifications as the checks approved in March.
The plan would also extend the Paycheck Protection Program (PPP) and allow small
businesses with fewer than 300 employees (including independent contractors with no
employees) that have seen revenue fall by more than 50% to apply for a second PPP
loan.
The Democrats’ proposed $3 trillion plan, introduced last May, would extend the $600
weekly unemployment boost through the end of the year. Negotiations on the stimulus
package will continue to play out this week.
