COVID-19 Cases: The Pandemic’s Future Hangs In Suspense

An illustration of coronavirus cases and hospitalizations overlaid on a photograph of a medical professional looking out a window.

COVID-19 cases dropped about 5 percent this week, while testing rose 12 percent as backlogs in reported tests—always a little slower to recover than reported cases—rolled in following disruptive mid-February storms. The number of people hospitalized with COVID-19 dropped almost 16 percent week over week, making this the seventh straight week of sharp declines in hospitalizations. States and territories reported 12,927 deaths this week, including a substantial backlog from the Commonwealth of Virginia.

4 bar charts showing weekly COVID-19 metrics for the US. Cases fell nearly 5% this week while testing was up over 12%. Deaths continued to drop week over week.

The decline in cases has been a point of confusion in the past week, as daily reports briefly jogged up after a large drop following the long Presidents’ Day weekend and disruptive winter storms in mid-February. A look at percentage change in reported cases since November 1 helps illustrate the dips and rises in reported cases seen around Thanksgiving, Christmas, New Year’s Day, and—more recently—the winter storms in mid-February. (On November 8, California did not report data in time to be included in our daily compilation.) Cases may plateau or rise at any point, and a close watch of the numbers is essential as vaccinations roll out alongside the spread of SARS-CoV-2 variants. But we would urge data watchers to be wary of conflating reporting artifacts with real changes in the state of the pandemic.

Bar chart from Nov 1, 2020 - Mar 3, 2021 showing the daily percent change in the 7-day cases average. The 7-day avg rose for a few days a week ago, but this was likely due to storm reporting impacts.

Although it seems unlikely, based on current figures, that a new surge is showing up in the case numbers, it is quite possible that case declines are beginning to slow. With reported tests up 12 percent this week—likely also because of a storm-related dip and rise—it’s impossible to be certain whether the case decline is slowing because of an increase in testing, or because disease prevalence itself is declining, albeit more slowly. We can look to other metrics, however, to help us interpret the past two weeks of case numbers.

One way to confirm that a change in reported cases—especially one preceded by a disruptive event like a holiday or a major storm—reflects reality is to look at new hospital admissions. This metric, which is available in the federal hospitalization data set, has tracked very closely with cases since the hospitalization data set stabilized last fall, but has not shown the same vulnerability to reporting disruptions produced by holidays or severe weather. Charting federal case data against new-admissions data shows that the decline in new admissions continues, though slightly more slowly than the decline in cases.

Two line charts showing federal COVID-19 data: 7-day average cases over time and 7-day average hospital admissions over time. Admissions are dropping in recent days while cases hit a small plateau due to reporting artifacts.

This signal helps confirm that the brief rise in daily reported cases in the past week was very unlikely to signal a new surge in cases—though, again, cases may not be dropping as quickly as they were in late January and early February. It’s nevertheless important to note that cases remain extremely high, and have only this week dipped below the peak of the summer’s case surge. (Though we’re almost certainly detecting a larger percentage of cases now than we were in the summer, as our testing capacity in the U.S. has increased.) The sustained decline in cases and hospitalizations is very encouraging, but with multiple variants of SARS-CoV-2 gaining footholds in U.S. cities, it remains vitally important to further reduce the virus’s spread via masking, social distancing, and avoiding indoor gatherings.

Although it may seem that the decline in hospitalizations is slowing down in recent weeks, the percentage decrease remains robust.

Bar chart showing daily percent change in the total number of patients currently hospitalized with COVID-19 in the US. This figure has been falling by a consistent percentage in recent weeks (around 2.4 percent)

Reported COVID-19 deaths, too, continue to decline. The particularly sharp drop in the week beginning February 11, which included Presidents’ Day and the beginning of the winter storms that affected data reporting in many states, was balanced by a smaller drop in the week of February 18. This week, deaths dropped by an encouraging 11 percent.

2 bar charts one on top of the other - the first showing the percentage change in weekly COVID-19 deaths in the US, the second showing just those weekly deaths. Deaths fell 11% from last week

It’s important to note that many states have recently added large numbers of COVID-19 deaths from previous months to their totals. In Virginia, cases and hospitalizations have been dropping for weeks, but after reporting fewer than 100 deaths a day for the entirety of the pandemic up to this week, the Commonwealth is now reporting hundreds of deaths every day—most of which occurred in December and January.

4 daily bar charts with 7-day lines overlaid showing key COVID-19 metrics for Virginia since the beginning of 2021. Deaths have spiked drastically in recent days - however, these deaths are reconciled from older dates and do not reflect the true state of COVID-19 fatalities in VA at the moment.

The addition of these backlogged deaths—like the 4,000 deaths from previous months recently reported by Ohio—obscures the reality of rapidly declining recent deaths. It also underlines the fact that deaths at the peak of the winter surge were actually much higher than the already-devastating numbers reported in December and January.

For the week ending February 25, COVID-19 deaths in long-term-care facilities have continued to decline as a share of all COVID-19 deaths in the U.S. (As we did in last week’s analysis, we have excluded from this chart all data for four states—Indiana, Missouri, New York, and Ohio—that recently added large numbers of undated deaths from previous months to their totals. The addition of these historical death figures to recent weeks made it impossible to follow recent trends at the national level without this exclusion.)

Bar chart showing the share of weekly COVID-19 deaths occurring in LTC facilities. The percentage is down to 13% in the most recent week after being over 30% for months.

It’s our final week of compiling and interpreting data here at the COVID Tracking Project, and we’ve spent much of the past few weeks explaining how to use data from the federal government in place of our patchwork data set. We’ve packaged up everything we’ve learned about federal case numbers, death numbers, hospitalization data, and testing data, as well as long-term-care-facility data. For more casual data users, we’ve also written a short primer on how to find easy-to-use charts and metrics from the CDC. It’s even possible to replicate three-quarters of our daily four-up top-line chart using data from the CDC, although the data are one day behind the state-reported data we compile.

4 charts showing key COVID-19 metrics over time from the CDC: Cases, Hospitalized, Hospital Admissions, and Deaths. All 4 charts show a declining trend.

In this version, new hospital admissions are included instead of tests—test data are available from the federal government, but are not in a date-of-report arrangement that matches the other top-line metrics. (We’ll be publishing a separate post showing how to produce this visual within the next few days.)

Long-term-care data wrap-up: Tonight marks our final compilation of data at the Long-Term-Care COVID Tracker, and we’ve just published a look at the subset of long-term-care-facility data available in the Centers for Medicare and Medicaid Services Nursing Home data set. This federal data set includes only nursing homes and accounts for about 27 percent of all COVID-19 deaths in the U.S. to date. The long-term-care data set we stitched together from state reports, by contrast, includes assisted-living facilities where states report them, and accounts for at least 35 percent of all U.S. COVID-19 deaths.

Race and ethnicity data wrap-up: For 11 months, we have shown that the COVID-19 race and ethnicity data published by U.S. states are patchy and incomplete—and that they nevertheless have indicated major inequities in the pandemic’s effects. Both of these things are true of the demographic data available from the CDC: Many data are missing, and what data are reported show ongoing disparities. Our introduction to the federal data will be posted later this week, and we’ll be publishing deeper analyses in the coming weeks.

As we wind down our compilation efforts, the United States is at a crucial moment in the pandemic: Decisive action now is our best chance at preventing a fourth surge in cases and outpacing the variants, which may be more transmissible than the original virus according to preliminary (preprint) data. Over the weekend, the FDA issued a third Emergency Use Authorization for a COVID-19 vaccine, this time for Janssen/Johnson & Johnson’s adenovirus vector vaccine, which showed impressive safety and efficacy results in its global clinical trials. The Biden administration announced Tuesday that the U.S. should have enough COVID-19 vaccine doses for every adult by the end of May—a dramatic acceleration from previous timelines.

Meanwhile, concerns over an uptick in variant cases are growing in Florida after researchers noted that 25 percent of analyzed samples from Miami-Dade County’s Jackson Health public hospital were cases of B.1.1.7. Although partnerships between the CDC and other labs have increased the number of specimens sequenced from about 750 a week in January to 7,000–10,000 a week in late February, this still allows for the sequencing of less than 3 percent of all cases in the United States.

Bar chart with genomic sequencing volume from the CDC. Sequenced specimens peaked at 7,000-10,000 per week in February
Genomic sequencing volume chart from the CDC

New York City has promised to quadruple the number of samples it sequences during the month of March, from 2,000 to 8,000 a week, which is more than the entire country’s labs sequenced in the week ending February 27.

Today’s weekly update is our 39th and last. We began writing them back in June 2020 as a way of offering a deeper interpretation of data points that was less jittery than those in the daily tweets. As we puzzled through the data and watched for indications of changing trends, we’ve tried to help people understand what has happened to us as the pandemic has ebbed and surged.

Although our data compilation will come to an end on Sunday, March 7, our work at the COVID Tracking Project will continue in other forms for another few months, as our teams complete their long-term analyses and wrap up documentation and archiving efforts. We’ll continue to post our work on the CTP site and link to it on Twitter until we finally close up shop in late spring.

Throughout the year that we’ve compiled this data, we’ve tried to explain not only what we think the data mean, but how we came to our conclusions—and how we tested and challenged our own analyses. We hope that one result of our doing this work in public is that our readers feel better prepared to do the same for themselves and their communities.

The federal government is now publishing more and better COVID-19 data than ever before. Some gaps remain, but far fewer than at any previous moment in the pandemic. To those of you who have relied on our work this year, thank you for your trust. We’ve tried very hard to deserve it, and we believe that we’re leaving you in good hands.


Mandy Brown, Artis Curiskis, Alice Goldfarb, Erin Kissane, Alexis C. Madrigal, Kara Oehler, Jessica Malaty Rivera, and Peter Walker contributed to this report.

The COVID Tracking Project is a volunteer organization launched from The Atlantic and dedicated to collecting and publishing the data required to understand the COVID-19 outbreak in the United States.

Source: COVID-19 Cases: The Pandemic’s Future Hangs in Suspense – The Atlantic

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U.K. Hit By Worst Economic Contraction On Record Amid Covid-19 Pandemic

Britain’s economy shrank by a record-breaking 9.9% in 2020, new figures by the Office of National Statistics show, highlighting the impact of Covid-19 restrictions, employment uncertainty and reduced demand, with limited growth in the final quarter narrowly avoiding a double-dip recession.  

The Office for National Statistics said Friday that the U.K.’s economic output fell by 9.9% in 2020, the largest annual fall on record.

Though the economy grew 1% in the last quarter when looser restrictions boosted the services industry, overall output was down 7.8% from the last quarter of 2019, the ONS said. 

The slump is twice that of the 2009 financial crisis and is possibly the worst in 300 years, with models from the Bank of England suggesting a decline of 13% during the Great Frost of 1709.

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U.K. finance minister Rishi Sunak said the figures show that the U.K. has suffered a “serious shock” as a result of the Covid-19 pandemic.

“While there are some positive signs of the economy’s resilience over the winter, we know that the current lockdown continues to have a significant impact on many people and businesses,” Sunak said, adding that his focus “remains fixed on doing everything we can to protect jobs, businesses and livelihoods.”

Key Background

The pandemic and associated public health restrictions made for an economically bumpy 2020, especially in economies like the U.K. which are heavily reliant on services. In the U.K., the first and second quarters of 2020 shrunk the economy by 2.9% and 19% respectively, but there was record growth of 16.1% in the third as restrictions were lifted. 

Tangent

In contrast, the U.S. economy shrank by a record 3.5% in 2020, the worst year since the aftermath of World War 2.    

What To Watch For

Strict public health measures and a resurgent wave of Covid-19 infections driven by a dangerous new variant of the virus have the U.K. economy likely falling again in 2021. While the U.K. has the worst coronavirus death rate in the world, it also has one of the best vaccination records, priming the country for an economic comeback. The BBC reported Bank of England Chief Economist Andy Haldane describing the economy as a “coiled spring” ready to release large amounts of “pent-up financial energy”.

 Further Reading

GDP first quarterly estimate, UK: October to December 2020 (ONS)

UK economy suffered record annual slump in 2020 (BBC)

UK economy shrinks by most in 300 years (Financial Times) Follow me on Twitter. Send me a secure tip

Robert Hart

Robert Hart

I am a London-based reporter for Forbes covering breaking news. Previously, I have worked as a reporter for a specialist legal publication covering big data and as a freelance journalist and policy analyst covering science, tech and health. I have a master’s degree in Biological Natural Sciences and a master’s degree in the History and Philosophy of Science from the University of Cambridge. Follow me on Twitter @theroberthart or email me at rhart@forbes.com 

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BBC News

The “economic emergency” caused by Covid-19 has only just begun, according to the UK’s Chancellor Rishi Sunak, as he warned the pandemic would deal lasting damage to growth and jobs. Please subscribe HERE http://bit.ly/1rbfUog​ Official forecasts now predict the biggest economic decline in 300 years. The UK economy is expected to shrink by 11.3% this year and not return to its pre-crisis size until the end of 2022. Government borrowing will rise to its highest outside of wartime to deal with the economic impact.

The government’s independent forecaster, the Office for Budget Responsibility (OBR) expects the number of unemployed people to surge to 2.6 million by the middle of next year. It means the unemployment rate will hit 7.5%, its highest level since the financial crisis in 2009. Newsnight’s Political Editor Nick Watt and Policy Editor Lewis Goodall report. #BBCNews#Newsnight#Coronavirus​ Newsnight is the BBC’s flagship news and current affairs TV programme – with analysis, debate, exclusives, and robust interviews. Website: https://www.bbc.co.uk/newsnight​ Twitter: https://twitter.com/BBCNewsnight​ Facebook: https://www.facebook.com/bbcnewsnight

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10.1 Million Americans Are Still Unemployed As Rate Ticks Down To 6.3%

The United States added just 49,000 jobs in January, according to data released by the Labor Department Friday—less than half the 100,000 added jobs economists were expecting as the pandemic continues to force layoffs in industries such as retail and hospitality despite gains in white-collar jobs.

The unemployment rate ticked down to 6.3% in January, from 6.7% in December; the metric hit a record high of 14.7% in April.

There are now 10.1 million unemployed people in the United States, compared to 10.7 million in December, the government said; job gains in professional and business services and education helped offset losses in industries including retail, healthcare, transportation, warehousing and hospitality.

Despite the decrease in unemployment, the number of permanent job losers increased to about 3.5 million in January, from 3.3 million in December—about three times prepandemic levels.

Another grim sign of a still-reeling job market, 400,000 Americans left the labor force last month, pushing the labor force participation rate slightly down to about 61.4%.

Of the 7 million people in America who want a job but are not actively seeking employment, about 4.7 million were prevented from looking for work due to the pandemic, the Labor Department said.

January’s report continues to show stark differences in unemployment by race, with minority groups such as Black Americans and Hispanics facing above-average unemployment rates of 9.2% and 8.6%, respectively.

Crucial Quote

“After contracting in December, the labor market returned to growth in January, as some economic lockdowns eased, which allowed more businesses to stay open,” James McDonald, the CEO of Los Angeles-based Hercules Investments said Friday. “While it’s encouraging to see the economy added jobs in January, we are still far away from pre-Covid-19 employment levels.” Overall, there are still 10 million less jobs than there were before the pandemic.

Big Number

17.8 million. That’s how many people were still receiving some form of government unemployment benefit last week—shockingly high compared to the 2.1 million total claims filed in the comparable week in 2020, according to weekly data released Thursday. That’s higher than the number of unemployed Americans, due to a startling number of people who’ve dropped out of the labor force because they’re no longer looking for work.

 

Key Background

The Congressional Budget Office said Monday that it does not expect employment will reach prepandemic levels until 2024–echoing similar estimates from economists predicting that the labor market recovery will severely lag the broader economic recovery in the years to come. Dallas Federal Reserve President Robert S. Kaplan said Thursday that the next two to three months will remain challenging for the economy even though widespread vaccination efforts should help curb some of the downside economic risks of increased Covid-19 infections. 

Tangent

After an all-night session, the Senate narrowly approved a budget resolution Friday morning that will allow Democrats to move forward on President Joe Biden’s lofty $1.9 trillion stimulus proposal without any Republican backing. It’s likely the package will need to be trimmed down to satisfy some of the more conservative Democrats, but experts, including Vital Knowledge Media Founder Adam Crisafulli, still estimate the resulting bill could total as much as $1.7 trillion and hit President Biden’s desk before the current enhanced federal unemployment benefits expire on March 14. Biden’s plan extends the enhanced benefits of $400 per week through September.

Further Reading

Senate Approves Budget Resolution Paving The Way For Biden’s $1.9 Trillion Stimulus Plan (Forbes)

Another 779,000 Americans Filed For Unemployment Last Week (Forbes) Follow me on Twitter. Send me a secure tip

Jonathan Ponciano

Jonathan Ponciano

I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com.

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NBC News 5.13M subscribers NBC News’ Steve Patterson shares the stories of Kanisha Mayweather, Stacy Davis and Victor Patterson — three of the millions of unemployed Americans who have faced the pandemic with faith and perseverance since March.» Subscribe to NBC News: http://nbcnews.to/SubscribeToNBC​ » Watch more NBC video: http://bit.ly/MoreNBCNews​ NBC News is a leading source of global news and information. Here you will find clips from NBC Nightly News, Meet The Press, and original digital videos. Subscribe to our channel for news stories, technology, politics, health, entertainment, science, business, and exclusive NBC investigations. Connect with NBC News Online! Visit NBCNews.Com: http://nbcnews.to/ReadNBC​ Find NBC News on Facebook: http://nbcnews.to/LikeNBC​ Follow NBC News on Twitter: http://nbcnews.to/FollowNBC​ Follow NBC News on Instagram: http://nbcnews.to/InstaNBC​ Unemployed Americans Still Struggling During pandemic: ‘I Do A Lot Of Praying’ | NBC Nightly News

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Stimulus Check Qualification Rules Could Change With a Second Payment

Congress is scrambling to piece together another relief package before the end of the year that would, if some legislators have their say, include a second economic stimulus check for individuals and families who meet the requirements.

Sen. Bernie Sanders, an independent, and Sen. Josh Hawley, a Republican, are looking to modify a $908 billion plan with an amendment that would authorize a second check for up to $1,200. The unamended proposal doesn’t include another direct payment. If Sanders and Hawley’s amendment is successful, the new payment would likely follow the same outlines of the first stimulus check for speed and simplicity, but even minor changes could have a significant impact for millions.

Another new proposal, this time from the White House, would provide $600 apiece for each qualifying adult and child, Though it’s less likely we’ll see this proposal become law, if it did it would clearly affect how much money a household could get, by halving the share per qualifying adult and increasing it by $100 per eligible child dependent

Even if no stimulus check is approved in 2020, the discussions happening now could impact the stimulus check conversation in early 2021. There’s clearly enough support for a second round of aid before there are enough available doses of the COVID-19 vaccine to inoculate the US population.

Read on for more information about what may happen to stimulus eligibility now. We update this story often.

How the qualifications could change with a new bill

While many members of Congress agree on the need for more aid, they differ on the specifics, and the two sides continue to discuss who needs assistance and how much to spend. Based on proposals that’ve been on the table this fall, here’s what lawmakers could do (or have already done):

Update the definition of a dependent: The CARES Act capped eligible dependents at kids age 16 and younger. One proposal this summer expanded the definition to any dependent, child or adult, you could claim on federal taxes. That means families with older kids or older adults at home could potentially see $500 more in their check total per individual if that proposal is adopted.

Read more: Nobody can take your stimulus check away, right? Not quite

money-dollars-bills-sock-american-flag
If the definition of a dependent changes, your family could benefit. Angela Lang/CNET

Raise the amount of money per child dependent: One White House proposal from October would’ve kept the definition of a child dependent used in the CARES Act but increased the sum per individual to $1,000 on the final household check. (Based on that, here’s how to estimate your total stimulus money and here’s the IRS’ formula for families.)

The White House’s new Dec. 8 proposal would reportedly raise the sum for each qualifying child to $600, up from $500 in the CARES Act.

Stop seizing overdue child support: The Democrats this summer pushed to let a parent who owed child support receive a payment; the original CARES Act allowed the government to redirect payments to cover overdue support.

Send checks to people who are incarcerated: After months of back and forth, the IRS is sending checks to those who are incarcerated and eligible for a payment. A Republican plan this summer would’ve excluded the payments.

Include noncitizens: The CARES Act made a Social Security number a requirement for a payment. Other proposals would’ve expanded the eligibility to those with an ITIN instead of a Social Security number because they’re classified as a resident or nonresident alien. A Republican plan this summer would’ve excluded those with an ITIN.

Who could qualify for a second stimulus check

Qualifying groupLikely to be covered by the final bill
IndividualsAn AGI of less than $99,000 (Same as CARES)
Head of householdAn AGI of less than $146,500 (Same as CARES)
Couple filing jointlyAn AGI less than $198,000 (Same as CARES)
Dependents of any ageNo limit (HEALS proposal; up to 3 in Heroes)
US citizens living abroadYes, same as CARES
Citizens of US territoriesLikely, with payments handled by each territory’s tax authority (CARES)
SSDI and tax nonfilersLikely, but with an extra step to file (more below)
Uncertain statusCould be set by court ruling or bill
Incarcerated peopleExcluded under CARES through IRS interpretation, judge overturned
Undocumented immigrantsQualifying “alien residents” are currently included under CARES
Disqualified groupUnlikely to be covered by the final bill
Noncitizens who pay taxes (ITIN)Proposed in Heroes, unlikely to pass in Senate
Spouses, kids of ITIN filersExcluded under CARES, more below
People who owe child supportIncluded in Heroes proposal, but excluded under CARES

Would the income limits be similar with another check?

Under the CARES Act, here are the income limits based on your adjusted gross income for the previous year that would qualify you for a stimulus check, assuming you met all the other requirements. (More below for people who don’t normally file taxes.) With the amendment proposed by Sanders and Hawley on Dec. 10, the requirements guidelines would follow those set out in the CARES Act.

  • You’re a single tax filer and earn less than $99,000.
  • You file as the head of a household and earn under $146,500.
  • You file jointly with a spouse and earn less than $198,000 combined.

What role do my taxes play in how much I could get? What if I don’t file taxes? 

For most people, taxes and stimulus checks are tightly connected. For example, the most important factor in setting income limits is adjusted gross income, or AGI, which determines how much of the total amount you could receive, be it $600 or $1,200 for individuals and $1,200 or $2,400 for married couples (excluding children for now).

Our stimulus check calculator can show you how much money you could potentially expect from a second check, based on your most recent tax filing and a $1,200 per person cap. Read below for your eligibility if you don’t typically file taxes.

coins-measuring-spoons
How much stimulus money you could get depends on who you are. Angela Lang/CNET

What should retired and older adults know?

Many older adults, including retirees over age 65, received a first stimulus check under the CARES Act, and would likely be eligible for a second one. For older adults and retired people, factors like your tax filingsyour AGI, your pension, if you’re part of the SSDI program (more below) and whether the IRS considers you a dependent would likely affect your chances of receiving a second payment. 

If I share custody or owe child support, how does that affect eligibility?

Due to a specific rule, if you and the other parent of your child dependent alternate years claiming your child on your tax return, you may both be entitled to receive $500 more in your first stimulus check, and in the second if that rule doesn’t change.If you owe child support, your stimulus money may be garnished for arrears (the amount you owe). https://playlist.megaphone.fm/?e=CBS4695642448&light=true

I haven’t submitted my federal tax return for at least two years. Can I still get money?

People who weren’t required to file a federal income tax return in 2018 or 2019 may still be eligible to receive the first stimulus check under the CARES Act. If that guideline doesn’t change for a second stimulus check, this group would qualify again. Here are reasons you might not have been required to file:

  • You’re over 24, you’re not claimed as a dependent and your income is less than $12,200.
  • You’re married filing jointly and together your income is less than $24,400.
  • You have no income.
  • You receive federal benefits, such as Supplemental Security Income or Social Security Disability Insurance. See below for more on SSDI.

With the first stimulus check, nonfilers needed to provide the IRS with some information before they could receive their payment. (If you still haven’t received a first check even though you were eligible, the IRS said you can claim it on your taxes in 2021.) This fall, the IRS attempted to contact 9 million Americans who may’ve fallen into this category but who haven’t requested their payment. Those in this group can claim their payment on next year’s taxes.

I’m part of the SSI or SSDI program. Am I eligible to get a stimulus check?

Those who are part of the SSI or SSDI program also qualify for a check under the CARES Act. Recipients wouldn’t receive their payments via their Direct Express card, which the government typically uses to distribute federal benefits, but through a non-Direct Express bank account or as a paper check. SSDI recipients can file next year to request a payment for themselves and dependents.

For more, here’s what we know about the major proposals for another stimulus package. We also have information on unemployment insurance, what you can do if you’ve lost your job and what to know about evictions.

Coronavirus updates

First published on June 25, 2020 at 4:15 a.m. PT.BudgetingTaxesPoliticsPersonal Finance How To

By: Clifford Colby, Julie Snyder, Katie Conner

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U.S. Households’ Net Worth Hits Record $123.5 Trillion As Stocks Boom, But Debt Is Also Surging

While unemployment has remained stubbornly above pre-pandemic levels, record highs in the stock market have pushed the net worth of all households in the U.S. to a new high, despite the fast growth in household debt.

The net worth of households in the United States climbed to $123.5 trillion in the third quarter, up 8% from a year ago, the Federal Reserve said in a report Wednesday.

The Fed, which calculates net worths by subtracting overall debt held from the sum of assets like savings and equities, attributed the gains to the surging value of stocks, which jumped $2.8 trillion in the third quarter, as well as real estate, which increased in net value by $400 billion.

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Meanwhile, household debt, which includes mortgages, credit card debt and personal loans, jumped at an annual rate of 5.6% in the third quarter, reaching $16.4 trillion; that’s the fastest growth this decade, beating out a 3.9% increase in 2017.

Business debt fell 0.9% to $17.5 trillion in the third quarter, while federal government debt jumped 9.1% to $26 trillion.

CRUCIAL QUOTE 

“We’ve seen home prices rise, market prices for tradable instruments rise and savings increase… but those gains skew to upper income people,” KPMG Chief Economist Constance Hunter told the Wall Street Journal. “It’s a vicious cycle,” she added of the pandemic’s disparate impact on lower-income Americans. “Not only are lower-income households more impacted, they also are less likely to have the resources to draw upon to support their families.”

KEY BACKGROUND

The S&P 500 jumped 8% in the third quarter, while the tech-heavy Nasdaq Composite soared nearly 12%, and both have reached record highs in the fourth quarter–as has the Dow Jones Industrial Average. But far from everyone benefits from those gains. According to a Gallup poll in March and April, just 22% of Americans making less than $40,000 annually said they owned any stocks, compared to 84% of people making at least $100,000 per year.

TANGENT

There were 10.9 million unemployed people in the country last month, when the U.S. economy added a much lower-than-expected 245,000 jobs, according to data released by the Bureau of Labor Statistics last week. The number of unemployed people in the U.S. remains more than three times higher than it was before the pandemic, during which 22 million Americans have been forced into unemployment.

FURTHER READING

U.S. Household Net Worth Hits Record in Third Quarter (WSJ)

Unemployment Claims Spike Again As Covid-19 Spreads And Americans Wait For Federal Relief (Forbes)

10.9 Million Americans Are Still Unemployed—Rate Ticks Down To 6.7%, But Job Market Could Take Years To Recover (Forbes)Follow me on Twitter. Send me a secure tipJonathan Ponciano

I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com.

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Wall Street Journal

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