How to compare the $ 300 rise in unemployment versus $ 400
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Congress is on the verge of increasing the weekly wage for the unemployed by $ 300 per week.
The American bailout plan, passed by the Senate on Saturday, calls for an increase in unemployment benefits by $ 300 per week. The addition would take until September 6th.
The House is voting on the Covid Relief Act this week.
But the House had previously passed a version of the aid package that offered a larger weekly surcharge of $ 400. Democrats reached a compromise to cut the supplement to Senator Joe Manchin, DW.V.
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“My top priority during these negotiations has been to ensure the best possible deal for the unemployed who could pass the Senate. With this deal, that will be achieved,” said Ron Wyden, chairman of the Senate Finance Committee, D-Ore., On Friday .
President Joe Biden is expected to sign the $ 1.9 trillion relief effort this week before the temporary unemployment programs expire on March 14.
$ 300 versus $ 400 per week
A weekly increase of $ 300 in weekly unemployment benefit would be in addition to standard government benefits.
According to the latest data from the US Department of Labor, workers received an average of $ 324 per week in government benefits in the third quarter of last year. That aid replaced about 38% of their average early layoff wage, which was $ 843 per week.
According to a CNBC analysis, an additional $ 300 per week would increase that replacement rate to 74%.
A weekly increase of $ 400 would have raised it to 85%.
By comparison, a $ 600 weekly improvement offered by the CARES Act last year replaced 100% of the lost wage of the average unemployed person.
The $ 300 surcharge would go further in some states, especially those that tend to pay meager benefits.
In Mississippi, for example, the average worker received $ 190 per week in January, which is the lowest of any state, according to the Department of Labor. Another $ 300 per week would more than double the current allocation.
Massachusetts, on the other hand, paid the average person $ 521 a week, the largest amount of any state in January. A $ 300 improvement in Massachusetts would provide a higher total payout ($ 851 per week) compared to the Mississippi worker, but would not double the initial aid.
According to the Department of Labor, more than 18 million Americans were receiving unemployment benefits in mid-February.