Jobless benefits end today, but will people go back to work? – National & International News – Labor Day MON 6Sep2021

Economists: No guarantee of major employment bump, even as benefit boosts end. Brazil: fears that Bolsonaro may be planning a coup.

NATIONAL NEWS

No guarantee of employment bump, even as benefit boosts end

Today, the $300/week federal unemployment boost expires, as do unemployment benefits for self-employed/”gig” workers and those who have been out of work for over 6 months. Many conservative politicians and business leaders will be celebrating this, after arguing for months that the additional benefits have kept people from going back to work.

But, the celebration may be short lived. Last week, a disappointing August jobs report showed a slower uptick in employment than in June and July. That means that millions of people either couldn’t go back to work or chose not to, even knowing these benefits would soon expire.

Additionally, the 25 states that ended the unemployment benefits early in June or July may provide a test case. Those states have seen only modest gains or no gains in employment compared with states that left the benefits in place.

As a matter of fact, some economists are predicting that the end of unemployment benefits could cause further stagnation in the job market. That’s because the roughly 11 million people who will lose benefits today will now just have less money to spend. The resulting loss of fluidity in the markets may hit production, profits and, ultimately, employment in some industries. This could end up canceling out any boost in employment gains once the benefits are gone.

So why are people not going back to work?

We’ve all heard the stories about “lazy” people just staying home and collecting “free money”. Or better yet, gaming the system by applying for jobs and not showing up so they can keep collecting unemployment. And yes, those people do exist, and you can expect them to rejoin the workforce pretty quickly after today if they haven’t already.

But while the “free money” talk makes exciting fodder for outrage porn on FoxNews and CNBC, it’s far from the whole picture.

COVID

President Biden attributed the disappointing August jobs report to the rise in COVID cases due to the delta variant. That is certainly a factor for many folks. About half of people currently working both remotely and in-person favor a vaccine mandate in their workplaces. Only about one quarter oppose such a mandate.

Many people who previously worked in food service are reluctant to return to work in restaurants that require neither vaccines nor masks for employees or patrons. The same is true for many custodial workers who are fearful of contracting COVID. When your job description includes coming into contact with strangers’ snotty hankies and other germ-filled detritus, it’s no wonder.

Parenting

The pandemic also creates a special predicament for parents of school-aged children. For example, rising COVID rates have forced many parents to stay home with children who are in quarantine after a school outbreak or whose school districts have returned to hybrid or remote learning models. Since few jobs guarantee family leave (paid or otherwise) many parents may have little choice but to stay out of the workforce for the duration.

For many parents of younger children, dropping them off with friends, relatives or a local daycare center while you go to work just isn’t an option anymore. On top of that, you have the fear that even a vaccinated parent could potentially pass COVID on to their child who’s still to young to get the jab.

Exploring options

Pre-pandemic, many workers had no choice but to stick with jobs they didn’t love to pay their bills, keep food on the table or maintain their insurance. Once they got cut loose from those jobs, the unemployment benefits gave them time to re-evaluate and explore other options for employment. That could mean taking advantage of online classes to improve their skills; taking early retirement; finding better paying jobs; starting their own businesses; or just finding jobs they liked better. 

Some of these people will return to their old jobs once they’ve exhausted their other options, but some won’t. That’s just a new economic reality to which we’ll have to adjust.

INTERNATIONAL NEWS

Brazil: Fears Bolsonaro could be planning military coup

An international group of former presidents, prime ministers and other public figures have signed an open letter warning that Brazil’s hardline president Jair Bolsonaro could be plotting a coup. Brazil’s presidential elections are still 13 months away, but critics warn that Bolsonaro is already setting the groundwork to undermine the democratic process.

Last month, Bolsonaro lost a bid in Brazil’s courts to do away with computer ballots in favor of paper ballots. He had previously said he “may not accept” the outcome of the election if computer ballots were still in use. After his defeat in court, Bolsonaro addressed a group of evangelical leaders “I have three alternatives for my future: being arrested, killed or victory”.

The letters’ signatories point out that Bolsonaro has assembled a Trumpian coalition of Christian fundamentalists, right-wing militants, and white supremacists. In recent months, Bolsonaro has stepped up his feverish rallies of his most radical supporters in numerous Brazilian cities. Flanked by military police, Bolsonaro leads them through the streets in marches and motorcycle parades. For example, on Aug. 10, Bolsonaro “directed an unprecedented military parade through the capital city of Brasília”.

Bolsonaro has called on his supporters to stage “counter-coup” rallies against Brazil’s Congress and supreme court in major cities tomorrow. The letter warns that the rallies are “modeled on the insurrection at the US Capitol on 6 January 2021”. 

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