Underscoring those concerns, the Labor Department reported on Thursday that about 886,000 people filed new claims for unemployment benefits last week, an increase of almost 77,000, or 9.5%, from the previous week. And those benefits are set to expire at the end of 2020.
Other researchers from the University of Chicago and Notre Dame University found that poverty has increased by 6 million over the last three months and continued to grow in September, unlike the Columbia study, which found poverty levels improving last month.
The number of people living in poverty in the USA has increased by 8 million since May, researchers from Columbia University have found, despite the $2 trillion coronavirus relief package passed earlier this year, The New York Times reports.
About 8 million people have slipped into poverty since May, according to a new report from researchers at the Center on Poverty & Social Policy at Columbia University. "They tell us people are having a lot more trouble paying their bills, paying their rent, putting food on the table".
The studies attribute the COVID-19 pandemic and the loss of the Cares Act to the rise in poverty.
Needless to say it is not easy to survive in the USA nowadays with only 2,854 dollars monthly, and this may help explain why we see so many people falling out of the middle class in recent years, the publication said.
The program expanded unemployment benefits and provided stimulus checks for families.
The Democratic House has twice passed multitrillion-dollar packages to provide more help and to stimulate the economy, but members of a divided Republican Senate, questioning the cost and necessity, have proposed smaller plans.
It's no secret that the pandemic left many people infected and new poor people as well. The state paused processing new claims for two weeks so they could sort through a backlog of claims and implement fraud prevention technology. The latest report for the week ending October 10 saw 898,000 new claims for regular state unemployment insurance, up 53,000 from the week before. A report from Moody's Analytics released Thursday shows almost 12 million households said they are unsure if they'll be able to continue their mortgage payments.