The early months of the COVID-19 pandemic saw historic increases in unemployment, which remained elevated throughout 2020. Federal Pandemic Unemployment Compensation (FPUC) provided unemployment insurance beneficiaries an extra $600 a week, a benefit that initially expired in July 2020.
A new study, led by Seth A. Berkowitz, MD, MPH, published today in Health Affairs, examined nationally representative Census Bureau data for changes in unmet health-related social needs and mental health among unemployment insurance beneficiaries before and after the initial expiration of FPUC.
“Given the ongoing debate surrounding unemployment insurance in the US, our study findings have important implications,” said Berkowitz, assistant professor in the division of general medicine and clinical epidemiology. “While the reactivation of FPUC through at least March 2021, as part of HR 133, is welcome news, our findings suggest that the lower supplement level ($300 versus $600) reactivated compensation may be less beneficial than the initial compensation.”
The study showed the loss of the $600 weekly benefit was associated with a 10.79-percentage point increase in risk for self-reported missed housing payments. Adjusted data also showed a 3.88 percentage points greater likelihood for food insufficiency; 6.04 percentage points greater likelihood for depressive symptoms; and 5.82 percentage points more likelihood of anxiety symptoms. Results from 122,133 individuals from the Census Bureau’s Household Pulse Survey Use Files were tabulated, comparing data during the final six weeks of phase 1, when FPUC was active, with the first eight weeks of phase 2, during which FPUC had expired.
The pandemic has created enormous economic disruption. This study found that unemployment insurance benefits may help mitigate this, but the initial expiration of FPUC was associated with increased risk for unmet health-related social needs and worse mental health among unemployment insurance beneficiaries. In future debates about both short-term and longer-term unemployment insurance reform, it will be important to remember that unemployment insurance is a vital form of social insurance that could provide meaningful health benefits.
Sanjay Basu, MD, is the study’s second author. He is the director of research at the Center for Primary Care at Harvard Medical School and vice president of research and population health at Collective Health, in San Francisco, CA.