Research Briefing | Aug 31, 2021

US | Pandemic unemployment benefits ending for millions

More than 11 million individuals will lose access to emergency unemployment benefits at the end of next week creating a headwind for personal income and consumer spending.

This comes as 25 states had already terminated benefits for roughly 3.5 million individuals ahead of the original American Rescue Plan deadline of Sep 6.

While states implementing an early termination argued that benefits were impeding labor supply, we only find a marginal effect. Other research confirms the limited impact of benefits on employment, but with wide uncertainty bands.

As such, it appears the expiry of benefits will weigh more on the personal income ledger of the economy than it does to support employment growth.

Back to Resource Hub

Related Services

Industrial property

Post

US: High debt costs suggest an industrial correction

The scale of the increases in debt costs, coupled with the low-yielding environment makes some repricing highly likely for gateway US industrial markets over the coming quarters.

Find Out More
Office building in London

Post

High debt costs suggest European office price correction

Our analysis suggests a 10% correction is needed on average for the major office markets in Europe to compensate for the higher cost of debt, with prime yields required to soften by 10bps-75bps to generate a low-risk interest coverage ratio at a reasonable LTV.

Find Out More