US Sees Unemployment Claims Skyrocket and Large Numbers of Evictions Likely To Start In September

US NEWS - The US Department of Labor reports that 1.1 million workers filed new claims for unemployment insurance last week, continuing the record levels of filings that began in March with the explosion of the COVID-19 pandemic.

An additional 543,000 workers filed claims under the Pandemic Unemployment Assistance (PUA) program that extends benefits to so-called gig workers, self-employed individuals, and independent contractors.

The ending of the federal ban on evictions and the concurrent expiration of state and local eviction moratoriums raise the danger that millions may be soon tossed out onto the streets. Since the federal ban required a 30-day waiting period, large numbers of evictions are likely to start in September.

According to a report by CNBC, up to 40 million could lose their homes as a result of the economic catastrophe triggered by the pandemic. One out of five renters were behind on their payments at the end of July. Some 60 percent of renters in West Virginia were in danger of eviction.

Since mid-July, state eviction bans ended in Maryland, Maine, Michigan, and Indiana. Louisiana reported a threefold increase in evictions over the same period last year.

While the number of US workers receiving unemployment, assistance fell to 14.8 million last week, that is still more than twice the high point of the Great Recession of 2008-2009. Another 11.2 million unemployed gig workers were receiving benefits under the federal PUA program.

Some 57.3 million workers have filed for unemployment assistance in the last 22 weeks, a massive number that is only likely to increase. Prior to the pandemic, the highest weekly number of new unemployment claims was 695,000 in the 1982 recession. Despite the push by the Democrats and Republicans to reopen businesses, the US economy has only regained 9.3 million of the 22 million that were lost since March.

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