How Did COVID-19 Unemployment Insurance Benefits Impact Consumer Spending and Employment? [June 24, 2022] [open pdf - 535KB]
From the Document: "The COVID-19 [coronavirus disease 2019] pandemic dramatically disrupted the economy with mass layoffs and business closures. The economy was shocked with stay-at-home and shutdown orders designed to limit person-to-person contact. These restrictions on the flow of labor and commerce reduced economic demand. They also increased the number of workers unable to work. Additionally, the increased workplace hazards created by the COVID-19 pandemic further limited certain jobseekers' options for employment, creating unusual shifts in the labor market. Congress recognized the potential threat that such massive earnings losses posed to the national and global economy and responded by augmenting the joint federal-state Unemployment Insurance (UI) system to maintain the economy, among many other measures that provided income support. Recent studies have examined the impact of these UI expansions on consumer spending and employment."
CRS In Focus, IF12143
Congressional Research Service: https://crsreports.congress.gov/