FILE PHOTO: This June 1, 2017 illustration photo shows a US five dollar bill. REUTERS / Thomas White / Illustration
July 6, 2021
By Jonnelle Marte
(Reuters) – Federal aid distributed under the CARES bill increased the ability of U.S. households to pay their bills after they became unemployed.
The average household would have had its spending on after losing work income with the help of improved unemployment benefits and direct cash payments under the March 2020 Relief Act, which was passed in March 2020 to support the economy through the COVID-19 pandemic can maintain another 15 weeks. 19 pandemic.
Low-income households were able to sustain their spending 43 weeks longer after losing their job than without the assistance, the study found. For households with higher incomes, benefits added a median of seven spending weeks.
Improved unemployment benefits had the biggest impact on what researchers called “household resilience,” or people’s ability to keep paying their bills after losing income from work. The allowance, which pegged $ 600 per week to state unemployment benefits from mid-April to July 2020, accounted for 85% of the change for lower-income households.
Black and Hispanic households got 19 weeks of resilience from unemployment benefits and got a bigger boost than white and Asian households.
Households in the South and Midwest were less financially prepared for job losses than the Northeast and West, but the CARES Act reduced some of these disparities.
The analysis focused on a sample of 10,613 head of households and their spouses using data from the Census Bureau. The benefits granted after the entry into force of the CARES Act, which included more direct cash payments and an extension of the extended unemployment benefit, were not taken into account.
(Reporting by Jonnelle Marte; Editing by Kevin Liffey)
This article originally appeared on www.oann.com