Barb Ashbrook, who lost her part-time job at a food court in downtown Indianapolis in March 2020, was denied unemployment benefits because she was earning more than $121 a week from a second job at a Dollar Tree store. Ray Rand, laid off by an RV rental company in Las Vegas, was rejected after missing a 48-hour deadline to respond to an inquiry while in the hospital. Anthony Barela, an Albuquerque barber, spent months trying to find out why he didn’t get benefits.
They’re three of at least 9 million Americans thrown out of work by the pandemic who didn’t receive any unemployment benefits despite the largest deployment of economic aid in U.S. history, according to a Bloomberg Businessweek estimate based on a review of more than a year’s worth of U.S. Department of Labor data. That’s a hole in the safety net as big as the population of Virginia.
Now, as the U.S. reopens, unemployment assistance has become the focus of a political debate. Critics say the programs enacted during the pandemic may be undermining the recovery by discouraging jobless Americans from looking for work—an argument challenged by many labor economists and top White House advisers.
More than half the states, almost all with Republican governors, have announced they will stop paying a $300-a-week federal supplement before it’s set to expire in September. A majority of those are also ending a program created for workers not previously eligible for unemployment insurance. The controversy has deferred a frank assessment of the system that will remain: an 85-year-old New Deal creation that proved woefully inadequate in an emergency.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers