Catherwood LibraryILR School

The extra $600 per week in unemployment benefits that Congress had approved in April, increasing many incomes by 10.8%, is due to expire July 31st, with no sustained recovery yet in place for the economy. This will devastate not only those who work in the hardest hit industries (hospitality), but will drag down consumer spending and increase missed housing payments, further slowing recovery and reducing GDP 2.5% in the second half of the year. The stimulus checks that had been approved by the federal government had also increased spending by low-income households, generally on items such as utilities and groceries, while spending by high-income families remains low. Once the extra unemployment benefits end, the level of benefits will be as they were pre-pandemic, purposely low in order to encourage people to seek work. However, jobs remain scarce as some employers haven't re-opened and may not re-open for a long time, if ever.