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As Many as 800,000 New York City Residents Will Lose Unemployment Benefits After Labor Day: Report

(Stock Photo by Tim Gouw from Pexels)

Aug. 27, 2021 By Allie Griffin

As many as 800,000 New York City residents will lose their unemployment benefits after Labor Day, according to a new report.

An estimated 750,000 to 800,000 city residents will stop receiving them after Sept. 6, according to a study released Thursday by The New School’s Center for New York City Affairs.

The abrupt end will hit the city particularly hard, since 10 percent of the estimated 7.5 million workers across the country who will lose all unemployment benefits live in the five boroughs.

New York City residents received a total average of $3.15 billion in unemployment benefits each month from April 2020 through now. That number will plummet to $156 million each month after the Sept. 6 expiration of federal unemployment benefits, the report found.

The loss of benefits also comes at a time when the eviction moratoriums are being lifted.

On Thursday, the Supreme Court knocked down the federal eviction moratorium — which was expected by be in place through Oct. 3. The state moratorium, meanwhile, ends in just fours days.

However, tenants who apply to the state’s Emergency Rental Assistance Program have some protection. Renters who apply will have their eviction case paused until their application is approved or rejected — and if they are approved for the program, they cannot be evicted for a year.

The combination of the loss of unemployment benefits and impending evictions is expected to be a big blow for many New Yorkers still recovering from COVID-19.

For instance, the number of job losses in New York stemming from COVID-19 — on a proportional basis — is more than three-and-a-half times higher than the national average, according to the report. New York City is still 510,000 payroll jobs short of its peak pre-pandemic level.

In addition to the 800,000 who will lose all of their unemployment benefits, about 120,000 residents will see a benefit reduction. These 120,000 residents will still quality for the state unemployment insurance benefits, but will lose a $300 weekly supplement from the federal government.

The loss of benefits will primarily impact lower-paid workers of color, according to the report. People who had worked in leisure and hospitality, local services, retail and in arts and entertainment industries are expected to bare the brunt of the loss.

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