A new challenge is coming for American workers and businesses. The CARES Act included a expiration date of December 26 for federal funding of pandemic unemployment assistance and pandemic emergency unemployment compensation. With this funding set to expire before the end of the year, 12 million workers could be left without financial support in the middle of the ongoing pandemic.

It isn't only the federal expiration of unemployment benefits. State benefits are also coming to an end for many workers. Most benefits max out at 26 weeks, a date approaching for workers that have experienced unemployment since the start of the pandemic. According to a recent report from The Century Foundation, 3 million workers already ran out of state jobless benefits in September, and based on these trends, more than 4 million more workers likely ran out by the end of October. As of October, the share of unemployed that have been out of work for more than 26 weeks increased from 19.1% to 32.5%.

The report predicts that 7.3 workers will lose PUA benefits on December 26 and another 945,000 will lose these benefits before December. In addition, another 4.6 million workers PEUC benefits on December 26 in addition to the 3.5 million workers that have lost unemployment benefits earlier. This means that in total, 16 million workers have already lost CARES Act benefits this year and another 12 million more will lose their benefits by the end of the year.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.