The Pandemic Unemployment Assistance program (PUA) is part of the federal CARES stimulus act passed in March. The PUA extends unemployment insurance to the self-employed, independent contractors, gig economy workers, and others who typically don't qualify.
It's clearly been a success, with about 14 million workers receiving aid through the PUA.
The chart below (click to enlarge) is from CNBC's Job losses remain ‘enormous’: Coronavirus unemployment claims are worst in history. It shows that PUA claims are about 40% of all the current continuing unemployment claims.
Without the PUA program, many millions of self-employed Americans would much deeper financial trouble than are currently are. And the economy would also be in much worse shape.
The program's success - and its importance to the financial health of so many people - lead to two policy implications.
First, the PUA program should be extended until the economic recovery is further along. Otherwise, many gig workers and self-employed are going to face financial difficulties.
And second, the PUA program is a successful example of a portable benefit that's detached from a traditional job. Going forward, we need to create more portable benefits and make them permanent.
BTW, Harvard Business Review's Gig Workers Are Here to Stay. It’s Time to Give Them Benefits nicely covers portable benefits. See that article for more information on this topic.
