Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

Millions Set to Lose Aid as Federal Programs Expire

This is a syndicated repost courtesy of Statista | Infographics. To view original, click here. Reposted with permission.

With Thanksgiving less than a week away, Americans typically start thinking about the upcoming holiday season, making plans for what is supposed to be a joyous occasion. 2020 being 2020, the holiday preparations will be a lot less joyful for many Americans this year, as millions of people could lose their unemployment benefits by the end of December unless Congress finally agrees on a new stimulus package to follow up on the CARES Act.

Aside from the expired Federal Pandemic Unemployment Compensation program (FPUC), which provided an additional $600 per week to individuals collecting regular jobless benefits, the CARES Act also enabled states to provide Pandemic Unemployment Assistance (PUA) to individuals who are self-employed, or who otherwise would not qualify for regular unemployment compensation and to extend unemployment benefits by up to 13 weeks under the Pandemic Emergency Unemployment Compensation (PEUC) program. Both programs are set to expire at the end of the year, however, leaving millions of Americans in doubt of their safety net as the pandemic rages on.

According to data published by the U.S. Department of Labor on Thursday, more than 20 million Americans still received unemployment benefits in the week ended October 31, illustrating that the jobs crisis, which has fallen out of focus a bit lately, is still far from over. And while the number of people receiving unemployment benefits through regular state programs has fallen to 6.45 million, from a peak of more than 22 million in May, 13 million Americans still rely on aid provided through either of the two aforementioned programs, as many who lost their job during the first wave of the pandemic have exhausted their regular unemployment insurance benefits.

With case numbers currently rising across the nation and new restrictions looming, it seems unlikely that many of those currently relying on federal aid will be able to return to their jobs before the emergency assistance expires. Unless Congress succeeds in passing a follow-up program in the next few weeks, 2021 could start off even worse than 2020 ended for millions of Americans.

This chart shows the number of persons claiming unemployment benefits in the U.S. through all programs in the week ended October 31, 2020.

Number of people claiming unemployment benefits

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.


Skating on Thin Ice, Keep Life Preservers Handy

We may be skating on very thin ice here, but the weight of the evidence still supports a weak bull case for the near to intermediate term. So I’m adding buy picks on the chart pick list and adjusting trailing stops to account for the risk.

Technical Trader subscribers click here to download the report.

Not a subscriber? Follow Lee’s weekly swing trade chart picks with Lee Adler’s Technical Trader, risk free for 90 days!  

These reports are not investment advice. They are for informational purposes, for a broad audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance.