With CARES Act ending, what happens now?

Unemployment benefit expires July 31, even as claims continue

According to the Arizona Department of Economic Security, Arizona still has a long path to recovery – at least in terms of employment numbers.

Last week, there were 30,011 first-time unemployment claims filed, and another 253,092 continuing claims filed in the state, Capitol Media Services reports, noting that more than 631,000 people in Arizona have sought unemployment compensation since the middle of March.

And, an additional 189,000 filed for Pandemic Unemployment Assistance, which is a special program for people who aren’t normally eligible for regular unemployment, like those who are self-employed or are contract workers.

That unemployment has likely been a lifeline for people. While Arizona’s weekly unemployment payment is one of the lowest in the nation – the highest amount a filer can receive is $240 a week – the federal CARES Act added an extra $600 a week to that number, for a possible total of $840 a week.

However, on July 31 – right around the corner – that $600 a week bump from the CARES Act ends.

And at the moment, there is no replacement plan in place.

The U.S. House of Representatives passed the Heroes Act, which would extend that benefit into 2021, but the Senate doesn’t appear interested in passing it.

In fact, several legislators have said they feel that $600 bump is encouraging people to stay on unemployment instead of finding work.

And let’s look for a moment at the dollars side of this.

For those working minimum wage jobs - $12 an hour in Arizona – a pre-tax check would amount to around $480 a week.

With unemployment and the CARES Act boost, one could potentially get $840 a week – a significant increase over $480.

And let’s break that down a little further. $840 a week is the equivalent of making $21 an hour.

There isn’t much of an incentive, on the surface, to actively seek a lower-paying job.

However, the clock is ticking on the CARES Act, and that $600 a month is about to disappear.

The question is, what should replace it, readers? There is talk in D.C. of extending the payment through 2021, or extending the timeframe but reducing the amount that’s paid. Or, legislators could take a completely different approach, moving away from that model entirely.

As it stands currently, on the surface, there isn’t much incentive to actively seek work, especially when one looks at the difference between the maximum unemployment dollars vs. a minimum wage job.

But at the same time, businesses aren’t booming – at least, not yet. People are a little reticent to get back out there, and as a result, there might not be as many jobs to find right now.

There’s no easy answer here. But what action do you think Congress should take next, readers?

Let us know. Share your thoughts online at www. YumaSun.com, or send in a Letter to the Editor at letters@yumasun.com.

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