Falling unemployment rate in October makes fourth check even less likely – Community News
Stimulus Check

Falling unemployment rate in October makes fourth check even less likely

For weeks, the number of new jobless applications has been steadily declining, so economists expected good news from the October jobs report from the US Bureau of Labor Statistics. And that data did not disappoint.

In October, the national unemployment rate fell to 4.6%. That’s down from 4.8% in September, and it also represents a pandemic-era low.

Equally important, job growth exceeded economists’ expectations. In October, 531,000 new jobs were added, far more than 450,000 analysts had expected.

Equally important, long-term unemployment (defined as being unemployed for six months or more) fell by 357,000 in October. And while there were still about 1.2 million more people who were long-term unemployed in October than just before the pandemic, it’s positive to see that number falling.

But while the October jobs report is worth celebrating, there is one potential downside. In light of these improvements, Americans are now even less likely to see a fourth stimulus check appearing in their bank accounts any time soon.

To be clear, even before the October jobs data was released, the general consensus was that there was no fourth stimulus check, at least not in the near term. But now it’s fair to say that Americans could write off the idea for 2021, and probably for the start of 2022 (unless, of course, things take a devastating turn in the coming weeks).

Still, that doesn’t mean Americans aren’t lucky at all. In fact, there are other sources of cash that some people can still get their way.

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Will you get another bonus day in 2021?

While a new stimulus check this year is unlikely, parents can still look forward to two separate windfalls in November and December. Then the last two monthly installments of the increased child discount are paid. In addition, in 2022, parents who have received installment payments will also be eligible to collect the remaining 50% of the increased credit.

Better yet, lawmakers plan to extend the increased child tax credit through 2022. Therefore, parents with children under 6 may be eligible for up to $3,600 of the credit next year, which is $1,600 more than it’s normally worth. Meanwhile, parents with children between the ages of 6 and 17 can queue for a $3,000 payday, which is $1,000 more than the child tax credit normally maxes out at.

Just as importantly, lawmakers are fighting to make the child tax credit fully refundable once it returns to its lower value. That means those who don’t owe taxes are still eligible to receive the value of the credit in full. Before 2021, only part of the Child Rebate could be refunded.

The idea of ​​not getting another stimulus check can be disappointing to many. But it’s important to focus on the big picture – that the economy is slowly improving. And that alone could help many people gain more financial security than any other direct payment.

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Rakesh

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