Title: Almost 200K Michigan jobs could be lost if unemployment benefits expire ⋆ Michigan Advance
Headings: Almost 200K Michigan jobs could be lost if unemployment benefits expire
Almost 200K Michigan jobs could be lost if unemployment benefits expire
State unemployment rate falls slightly to 21.2% in May
Michigan won’t bounce back from COVID-19 recession until after 2022
State to clear unemployment backlog by July 4

Content: Almost 200K Michigan jobs could be lost if unemployment benefits expire ⋆ Michigan Advance
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Almost 200K Michigan jobs could be lost if unemployment benefits expire
By
C.J. Moore
-
July 14, 2020
Justin Sullivan/Getty Images
The $600 weekly federal unemployment insurance benefits meant to stimulate the national economy during the COVID-19 pandemic expire on July 31. Unless Congress extends those payments, the state could lose a boost in jobs, personal incomes and gross domestic product (GDP) over the next year, according to research from the Washington, D.C.-based Economic Policy Institute (EPI). For Michigan, an extension of Pandemic Unemployment Assistance (PUA) benefits to mid-2021 means 194,520 jobs would be retained. The state’s GDP, or the total value of goods and services provided in one year, would increase by 6.6%. “If these benefits aren’t extended, what you’re going to see is just incredibly depressed demand for goods and services,” said Julia Wolfe, EPI state economic analyst. If more people halt spending because they are not receiving benefits, that can trickle down to create insufficient demand for goods and services. Lesser demand from households, businesses and governments constrains economic growth. If businesses are not turning a profit or making enough money to cover operating expenses, that increases their chances of economic turmoil — which can result in pay cuts, layoffs and closures. State unemployment rate falls slightly to 21.2% in May
State unemployment rate falls slightly to 21.2% in May – Michigan Advance
State unemployment rate falls slightly to 21.2% in May
Michigan’s seasonally adjusted jobless rate fell to 21.2% in May during the COVID-19 pandemic, according to new data released Wednesday by the Michigan Department of Technology, Management and Budget (DTMB). That is down from April’s 24% revised jobless rate.