#Strong June jobs report could kill new coronavirus stimulus checks

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A barber shop in Chicago shows a help wanted sign.
Nam Y. Huh/AP

A second round of coronavirus relief for Americans impacted by the pandemic will hinge on next week’s jobs report and early signs of an economic recovery, according to a new report.

An unexpectedly large number of jobs were added to the economy last month when the US Department of Labor announced the country gained 2.5 million jobs in May — pushing the unemployment rate down to 13.3 percent from a high of 14.7 percent.

If that recovery continues in next week’s June report then Congress could choose to nix a second wave of stimulus checks and extending increased unemployment benefits which are due to expire at the end of July, according to a report by The Hill.

“They don’t see the market crashing, they see a better-than-expected jobs report last month, and so their focus is very much targeted [around a] back-to-work narrative,” Ben Koltun, a senior research analyst at Washington’s Beacon Policy Advisors, told the publication.

“If there’s a bad jobs report — and when you see more people out of work than last month — then there may be an impetus by more Republicans in the conference to provide broader support and more stimulus spending than they’re talking about right now,” he added.

A staggering 47.2 million people have filed unemployment claims in the US in the past 14 weeks with the COVID-19 pandemic forcing large swaths of the economy to shutter.

Lawmakers moved quickly to pass trillions of dollars worth of economic relief, including federal unemployment benefits of $600 per week and stimulus checks of up to $1,200 amid the financial fallout.

While Democrats have been pushing for another round of aid, Republicans have signaled their opposition to more direct payments. A strong June jobs report is expected to dampen bipartisan enthusiasm for another bill.

However, President Trump this week said he supported a second round of “very generous” financial aid for Americans reeling from the financial fallout of the pandemic.

“We will be doing another stimulus package, it will be very good, very generous,” Trump told Scripps Networks on Monday, revealing the bipartisan measure would probably come “over the next couple of weeks.”