ST. LOUIS — An end to federal unemployment benefits — whether permanent or even short-term — could shock the local economy, a professor said.
Congress has so far failed to reach a deal extending $600-a-week benefits, initially passed in March, that expired at the end of July. President Trump last weekend signed an executive order that would provide $300 in enhanced federal unemployment benefits to individuals, and asked states to contribute another $100.
States, however, are not required to participate, and Missouri Gov. Mike Parson offered no details Monday on how or when the state could provide $100-a-week per beneficiary.
At the end of July, more than 200,000 Missourians were on unemployment, including 160,000 on regular unemployment plus another 60,000 on the Pandemic Unemployment Assistance program for self-employed workers who don't qualify for regular unemployment. Missouri typically gives no more than $320 a week for unemployment.
"That's a big number of people who are counting on those funds," said Anne Winkler, chair and professor of economics at the University of Missouri-St. Louis.
She said the extra $600 a month had boosted consumer spending, and was a "big part" of gross domestic product. "It's very important in boosting demand for goods and services," Winkler said. "That leads to employment of people."
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