When businesses are earning less profits, they cannot afford to pay their employees as much money. Therefore, this often leads to layoffs, hence increases in claims for unemployment benefits. The capacity limits and social distancing restrictions in certain businesses also have documented, adverse impacts on profits.
The correlation between shutdowns and joblessness in America is something conservatives and critics of lockdowns consistently sound the alarm over.
Lowering weekly unemployment claims
In order to lower weekly unemployment claims, Americans will need to be able to get back to work. This means lockdowns and other measures that halt the flow of businesses will have to subside.
Despite reported surges in COVID-19 cases, the data is — and continues to be — consistent. When the government implements shutdowns and restrictions, businesses suffer, as do American workers. By contrast, when government lifts and lessens shutdowns and restrictions, businesses and workers are able to do their jobs; this subsequently drives down the demand for unemployment benefits.
