An unexpectedly strong U.S. jobs market is helping average Americans keep spending while staying up-to-date on their bills. In Atlanta, averages are of little comfort to people like LaRon Eskew.
Eskew, 28, lost his job at a large bank's data center in February. He's been getting by on gig work — fixing cars and installing security cameras — but the
"I wouldn't say I'm sweating bullets, but I'm up to my neck," said Eskew, whose rent has climbed to $1,600 monthly from $1,200 per month in the past two years.
With the U.S. unemployment rate
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It's also allowing state legislators, who have broad license to set benefit levels for
"We have not increased the benefit amount in years, and there seems to be no appetite to do so," said Anna Eskamani, a Democrat state representative from Florida, where the weekly maximum is $275. Eskamani said when she tried to raise the payment by $100, she was accused of "trying to help lazy people." The $275 maximum — which also applies in Alabama, Louisiana and Tennessee — has the same buying power as about $232 in early 2020, according to the Bureau of Labor Statistic's inflation calculator.
By the numbers, the average American should
But for those Americans who've fallen through the cracks, two years of outsize inflation and the highest interest rates since the early 2000s have upped the stakes of being unemployed. Buying groceries costs 25% more than it did at the beginning of 2020, while used-car prices are up 35% and rents are up roughly 20%, according a recent Bloomberg analysis.
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In Coventry, Rhode Island, Richard Dorgan lost his $57,000-per-year job with a Medicare and Medicaid consultant in June. He's scraped by ever since: The weekly $600 he got for several months from unemployment benefits couldn't keep up with the cost of car insurance, which has soared to more than $2,000 a year for him and his wife, on top of rises in their energy, phone and cable bills.
Dorgan, 64, is looking for a
At the start of the pandemic through July 2020, the federal government buttressed unemployment payments by $600 a week on top of ordinary benefits. The extra federal checks fell to $300 a week for more than a year afterward. Freelancers and the self-employed were eligible too, despite ordinarily missing out of jobless benefits.
The payments were so generous they set off a red state-blue state debate over whether they allowed Americans to sit home,
Nowadays, low unemployment means it's easy for state legislators to push the issue to the back burner, said Michele Evermore, a senior fellow at the Century Foundation, a progressive think tank.
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"States know they can keep up a race to the bottom for regular benefits, because the federal government will probably jump in and save claimants in an emergency period," Evermore said.
Researchers who track unemployment benefits say the U.S. faces a reckoning if the
Heather Hammond, 38, lives in central Michigan with her husband and six kids. Until she was let go from a home warranty company in early October, Hammond was
When she lost her job, she had to withdraw $6,000 from her 401(k) plan to help stay afloat, even with her husband's stable manufacturing salary. She was
"We weren't even sure we were going to survive," said Hammond.