At least for a while, it pays better to be unemployed

In many states workers can do better collecting unemployment than being employed.

Please consider the Coronavirus Unemployment Calculator to determine when and where it’s better not to work.

(Article by Mish republished from TheStreet.com)

Under the CARES Act, Americans laid off due to the coronavirus receive an additional $600 a week for the next four months, ending July 31st or upon employment. In addition, the unemployment window has been increased in each state by 13 weeks.

Massachusetts generous unemployment policies combined with the stimulus means all workers making under $73,996 would receive more a week unemployed than they do from working.

Many of these salaries outstrip the state’s median income, meaning the majority of workers would receive more from an unemployment check than a paycheck.

The stimulus package made significant changes to state unemployment. For the next four months, the unemployed will receive an additional $2,400 a month. Similarly, the added 13 weeks provides people longer to find a job in a new hostile job market.

The new package does mean a good chunk of the workforce are now receiving paychecks smaller than they would on unemployment. This includes workers in essential businesses, including hospitals and super markets, who are putting themselves in harm’s way to keep society running.

This is ridiculous of course. The next stimulus measure needs to cap the benefit at some percentage below what people were making.

Instead, the next package aims to increase the amounts and pay illegal immigrants as well.

For discussion, please see House Bill Will Give Direct Payments To Illegal Immigrants.

Read more at: TheStreet.com