December 1, 2021
Stimulus Aid, Unemployment and Where Recruiters Can Help
Is “Round 4” in Store?
The push for more stimulus services is upon us.
The IRS has issued more than 169 million payments in the third round of direct stimulus aid to date. That accounts for more than 2 million getting the $1,400 check in July alone, and we are still seeing a push for a fourth round of stimulus aid that would effectively send recurring payments until the pandemic ends.
Continuous Financial Distress
To date, the federal response to COVID-19 has paid up to $3,200 to adults from the American Rescue Plan signed by reigning President Biden in March 2021. Still, Americans across the country are continuing to report financial distress and new variants are surfacing worldwide as well. It’s reported that just short of one quarter of Americans struggled to pay household expenses up to last week even. Polls have reported supporting numbers of just that up to the end of August in the recent Census surveys.
Unemployment Still at a High
Currently, the unemployment rate sits at 5.2% which is still much higher than the 3.5% we saw before the pandemic. Businesses are still scrambling to hire as 5.3 million citizens have not made it back to payroll positions. The Delta variant poses an extreme threat to the rising of that number, and the economic impact will be felt by all should it increase further.
For long-lasting effects, the solution isn’t in the return of more stimulus money. Just under 10 million people lost enhanced unemployment benefits this past Labor Day, as federal benefits expired. That takes the US to a $5 billion decrease of funding in weekly benefits. Those former recipients are reporting new challenges paying for groceries, rent and other essential needs.
For most, the stimulus funds received to date are long gone. More than 2.8 million people have signed the petition (change.org) that calls lawmakers to pass legislation for the $2,000 recurring monthly allowance in aid. So, what does that mean? Is it likely to come?
Most analysts say it’s not something to hold your breath for!
Stimulus Check 4 Unlikely
Biden has announced plans to reshape infrastructures on schools, roads, airports and housing projects, so the “round 4” is not probable, say most. These initiatives can be met only by boosting the corporate tax rate from 21% to 28%.
Other areas of extreme unpredictability factor in too. The Delta variant is spreading and poses real threat to projection accuracy for the economy. This spike could devastate the service industry yet again, as people pull back recent willingness to serve in public positions. Fear of COVID-19 still reigns highest on the reasoning for some not returning back to occupations.
Where Recruiters Can Help
Companies like MRT continue to serve diligently in all industries- both helping employers fill vital positions and candidates find a home for their useful skills and services. A new wave of cross training and flexibility has been introduced to the workforce, making employment agencies like ours very valuable for both sides of the placement. Contact us today for a FREE consultation or check out our online tools, including resume support, on our website.