Tennessee residents have known for weeks that 'federal' unemployment assistance is coming to an end on July 3rd. But a new report explains how that loss can impact ALL Tennesseans.
The report, (here) issued by the Joint Economic Committee in Nashville, found that 64% of those who qualified for unemployment in May, will no longer qualify after July 3rd. Those groups are primarily folks who have exhausted their state benefits, gig workers, and the self-employed.
That's not great news for businesses either. Here's why...
The report also found that every 'dollar' distributed through the unemployment system generates $1.61 in local spending. Based on those numbers, when Tennessee's unemployed lose $300 million in benefits over the next few months, Tennessee businesses will feel a $480 million negative impact. As the report states, "By ending these programs early, states are refusing billions of already appropriated federal dollars that could be spent in local groceries, restaurants, and retail shops.
This will not force the unemployed to go to work.
Another report (here) notes that all indicators suggest this 'cutting off' of unemployment benefits just won't work. The chief economist for the AFL-CIO noted that the share of unemployed workers flowing into employment has gone unchanged since last summer.
Even the best estimates suggest about 25% of the unemployed workers will find jobs.
So what will the other 75% turn to? The options are few, and most will impact the general public in a negative way: alcohol, drugs, and crime almost always follow.
If your family is struggling because you didn't qualify for unemployment, and stimulus checks and child credits are still keeping you behind the eight ball....call us at the law office of T. Verner Smith.
Through financial restructuring, debt resolution, or legal options including but not limited to bankruptcy, there are ways to relieve the pressure and chart a path to a better future. Don't be embarrassed, don't be hesitant, you are not alone, and taking action now is the smart approach.
Call us at (731) 423-1888 and schedule a free consultation.
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Call us at (731) 423-1888