1. Expand safety net programs to benefit all in need
Safety net programs can help people weather a variety of economic crises by meeting basic needs and providing stability. Yet the pandemic has exposed just how woefully inadequate America’s safety net structure is.
For example, before the pandemic, state unemployment insurance (UI) did not cover monthly expenses anywhere in the country and excluded millions of others due to their work classification, previous earnings, length of employment, or immigration status.
The Coronavirus Aid, Relief and Economic Security (CARES) Act provided a temporary $600 weekly boost to UI, lifting millions out of poverty before that provision was allowed to expire at the end of July 2020. The American Rescue Plan continued a $300 weekly supplement to UI that started in December 2020, providing an income to millions of long-term unemployed and self-employed workers, independent contractors, gig workers, and others. Unfortunately, this supplement and the other temporary federal UI expansions are set to expire nationally on September 6, 2021. To make matters worse, at least 26 governors have pledged to end some or all of these programs even sooner, cutting benefits for 4.7 million people and severely affecting their ability to recover from the pandemic.
Similarly, programs such as the Supplemental Nutrition Assistance Program (SNAP), intended for those with the lowest incomes, have not done enough to prevent hunger and food insecurity in America. Even before COVID-19 hit, the inadequate benefit amounts forced 45 percent of SNAP recipients to limit the food they ate or skip meals just to make it through the month; and nearly a third of SNAP recipients had to visit a food pantry to keep themselves fed. From December 2019 to December 2020, the demand for charitable food assistance rose by nearly 50 percent. This was especially prevalent for households of color, households with children, and people with disabilities. Fortunately, the American Rescue Plan contained significant expansions in food assistance programs to help mitigate the high levels of hunger seen throughout the crisis. But more must be done. Lawmakers must expand eligibility for SNAP, ensuring that currently excluded groups—including undocumented immigrants and many college students—are able to receive necessary food assistance. Burdensome work requirements that only serve to push people away from assistance, rather than encourage work, should also be eliminated.
Temporary expansions of the safety net are not enough to help the millions of Americans who are still struggling with the economic and health fallout from the pandemic. Congress must continue to invest in and modernize safety net programs, ensuring that benefit levels are expanded and more accessible than they were before the crisis. It should also consider implementing automatic triggers that would expand benefits during future economic shocks, such as recessions, without the need for legislative intervention. Not only would this prevent people from falling into poverty while Congress argues over how much relief is necessary, having a system that automatically triggers expanded benefits would also help soften the blow of future recessions and stimulate the economy by giving money to people who desperately need it in a timely fashion.
2. Create good-paying jobs that meet family needs
Rebuilding the economy in an equitable way requires the creation of millions of new, good-paying jobs in key industries, with significant worker protections to ease the burden on working families. Before the pandemic shut down much of the country, unemployment stood at 3.5 percent, but by April 2020, unemployment had risen to almost 15 percent. A year later, hiring is on an upward trajectory, but unemployment is at 5.8 percent, which is still considerably higher than pre-pandemic numbers.
While the uptick in employment is a good sign, the same people who struggled before the crisis are still being left behind: The unemployment rates for Black and Hispanic individuals stand at 9.1 percent and 7.3 percent, respectively, compared with a 5.1 percent unemployment rate for white people. Similarly, the disability community continues to experience difficulty regaining employment, with 10.2 percent remaining unemployed as of May 2021. It is not the first time these communities have seen large unemployment gaps compared with their white and nondisabled peers, as such gaps were consistently present even in the months leading up to the pandemic, when unemployment was low.
Women have particularly borne the brunt of job loss because they are overrepresented in the hardest-hit service sector jobs. From February 2020 to May 2021, women lost a net of 4.2 million jobs. Furthermore, since April 2020, the labor force participation rate for women has hovered between 54.6 and 56.2 percent—the lowest observed rate since the late 1980s.
Even though pandemic-related stimulus packages have helped bolster the economy, labor market growth is sluggish, as many Americans are still unable to come back to work due to caregiving challenges or are taking more time to find safe and decent jobs that support their basic needs.
Creating the jobs needed to build an equitable U.S. economy requires federal investment. The American Jobs Plan is centered on investing $2.3 trillion to create new jobs by rebuilding roads and bridges, creating a green energy economy, expanding essential jobs in the caregiving sector, supporting domestic manufacturing, and ensuring that these jobs provide decent wages and benefits and are accessible to Americans from all walks of life. If passed, the American Jobs Plan could reform and rebuild the economy by significantly shrinking the gap of 7.6 million jobs lost since February 2020 and by allowing people to build financial security and save for the future.