Unemployment rates will take a while to come down: Former Chase economist
Former Chase chief economist Anthony Chan on high unemployment claims and the labor market recovery.
A growing number of jobless Americans are filing lawsuits against their respective states seeking to restore a pandemic relief program that paid out an extra $300 a week in unemployment benefits – and some are winning.
Judges in Maryland and Indiana have ruled the two states must resume paying the extra jobless aid that had been halted earlier this year until the lawsuits are resolved. The rulings mean that roughly 500,000 unemployed workers in those states should see a continuance of their benefits, according to an estimate from the National Employment Law Project (NELP).
Maryland and Indiana are among a group of 26 states, all but one led by Republican governors, prematurely ending one of three federal unemployment programs that provided jobless workers with an extra $300 a week, on top of their regular state benefits, and extended eligibility for contract workers as well as those who had exhausted their regular state benefits.
JOB SEARCHES SPIKED IN STATES PREMATURELY ENDING UNEMPLOYMENT BENEFITS
Unemployed residents in Indiana were the first to take legal action in an attempt to block the state's push to end pandemic unemployment benefit programs; in mid-June, two nonprofit groups sued Gov. Eric Holcomb, arguing that he had "violated the clear mandates of Indiana's unemployment statute — to secure all rights and benefits available for unemployed individuals."
A state judge ruled at the beginning of July that Indiana must continue paying the federal money to roughly 230,000 Hoosiers until the lawsuit is decided, arguing a "preponderance of evidence" suggested the early termination of the program violates state law.
"A loss of housing or medical care and the inability to provide food, shelter and adequate childcare for a family constitute irreparable harm pending resolution of this cause of action and are not adequately compensable by an award of damages," Marion Superior Court Judge John Hanley wrote in his decision.