“There’s a lot of turmoil in the labor market, a lot of churn,” said Joel Prakken, chief U.S. economist at the consulting and research firm IHS Markit. While economists have debated whether the recovery will take the form of a V or a Nike swoosh, Mr. Prakken said the recent uptick in coronavirus cases could create a W-shaped rebound. “The upturn in cases is worrisome,” he added.
So far, the recovery has been uneven, according to data analyzed by IHS. After being down 100 percent in April, the number of seated diners at restaurants is now off by 40 percent, a considerable improvement. Demand for gasoline is halfway back to where it was before the virus. But spending on air travel and moviegoing remains depressed.
The shaky economic outlook has both experts and workers worried about the looming expiration of the Federal Pandemic Unemployment Compensation program, which provides a supplement of $600 a week to those collecting state jobless benefits.
“It’s made all the difference, because basic unemployment isn’t enough,” said Richard Brenin, who was laid off in March from his position doing postproduction work for television shows and movies in Los Angeles.
Without the $600 federal payment, Mr. Brenin would collect $450 a week. “It barely covers the rent, with nothing left over for the car payment, basic expenses or food,” he said, and he and his husband “don’t have much saved up.”
Labor Secretary Eugene Scalia is opposed to extending the supplement, and many Republicans on Capitol Hill share his outlook as Congress considers new emergency relief.
“I don’t think the $600 benefit is the answer going forward,” Mr. Scalia said in an interview with CNBC on Wednesday.
Article source: https://www.nytimes.com/2020/06/25/business/economy/coronavirus-unemployment-claims.html
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