Data released by the Labor Department recently has further strengthened the case for a 4th stimulus check. The Bureau of Labor Statistics released figures of unemployment for June. It is expected to influence President Biden, as he decides on the next phase of stimulus to help in an economic revival.
The administration had earlier pointed out that 850,000 were created this month which is more than the 650,000 created in May. But there is also the American unemployment data to reckon with. It went up marginally touching 5.9%
Comparative Figures With The Previous Stimulus Check
The Biden administration aggressively a policy of all-around stimulus support right after they entered office. The $1.9TAmerican Rescue Plan included the $1,400 stimulus check, the CTC payment that was generously expanded, and the unemployment check, which was extended to September 16, 2021.
The unemployment figures were high, reaching 6.3% at the time of the announcement. It has dipped marginally to 5.9% but remains at almost double the figure before the pandemic, in March 2020.
But the third stimulus check and the other stimulus support for various sectors has not had the desired effect. So with the current unemployment rate still high, is there justification behind demands for a fourth, or even a fifth stimulus check?
The Mixed Jobs Report And The Fourth Stimulus Check
There was an outburst in spending in the period following the initial payments under the third stimulus check. People spent more in April and May and there was a sharp upward spike in consumer spending. That marginally contributed to the improvement in the employment figures. But a survey taken during that period had revealed that a third of the beneficiaries had almost run out of the third stimulus money or had enough to last them a month more, at best.
This had fuelled calls for a fourth stimulus check. Even leading economists such as Jason Furman had said that regular stimulus checks were required till there were clear signs of a turnaround.
In a parallel development, the issue of access to the benefits has also been troubling. Many people were unable to get access to unemployment benefits. Studies by Eliza Forsythe, eminent economist, have revealed that only 40% of people out of jobs have reaped the benefits of unemployment aid.