As many as 122,780 Washington residents who now collect federal unemployment benefits could stop receiving them in early September.
Four major federally-funded unemployment programs expire on the week ending Sept. 4. The Century Foundation estimates that more than 7.5 million people nationwide will see their payments stop. The maximum benefit is currently $929.
Also ending is a federal program that provided an additional $300 to each week’s unemployment benefits.
Washington’s Employment Security Department paid a total of 229,878 claims in the week ending July 31. Many involved regular insurance claimants collecting state benefits paid to people who worked for employers who paid an unemployment insurance tax.
The federal programs were created over the past year and a half as the COVID-19 pandemic crushed the economy and triggered unusually high unemployment.
Not everyone receiving federally-funded benefits may face a sudden cutoff, said Washington Employment Security Department spokesman Nick Demerice.
“It is possible, if someone worked a minimum of 680 hours in the past year, that they may qualify for a new regular unemployment insurance claim. We have been working with claimants the past several months to get them moved over to these claims if they qualify,” said Demerice.
The department expects to have an update on the cutoff’s impact later this week.
The most widely used of the benefits has been the Pandemic Unemployment Assistance program, which provides help to people not usually eligible for regular unemployment benefits. Pandemic Unemployment Assistance recipients can include independent contractors, small business owners, gig workers and others.
The Century Foundation, a progressive research group, estimates 71,803 Washington state residents could lose Pandemic Unemployment Assistance benefits next month.
Another 50,977 people in Washington could lose payments they receive from the Pandemic Emergency Unemployment Compensation program, which also provides extension payments to people who have exhausted their regular benefits.
The Century Foundation report stressed that the job market will not suddenly be able to accommodate all these people.
“Millions of workers remain out of work, and despite progress, the labor market is nowhere near its pre-COVID levels,” said Andrew Stettner, foundation senior fellow.
There’s been little talk of extending any of the federal benefits. The view of Sen. Ted Cruz, R-Texas, was common among congressional Republicans.
“The existing employment programs remain. It’s simply the plus-up that for many people was paying them not to work than they made working. It tragically contributed to unemployment across the county,” said Cruz, a member of Congress’ Joint Economic Committee.
Committee Chairman Donald Beyer, D-Virginia, said when asked about the benefits’ future, “We need to strengthen our unemployment system to better meet the needs of our 21st century workforce and to ensure income support is adequate and tied to economic conditions on the ground to automatically extend and sustain benefits during future economic downturns.”
The Washington Employment Security Department is encouraging people to seek help in WorkSource Washington. It’s a partnership of state, local and nonprofit agencies that provides a wide variety of job and training services to both Washington job seekers and employers.
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