United Airlines, Federal Government, James Gamboa discussed on Morning Edition
I'm simply been ashore in for David Brancaccio. So that's 1.31 million people who filed for unemployment last week. That is about 100,000 less than the week before, And that is good news, though the July 4th holiday may have held numbers down. 32 million Americans are receiving both federal and state unemployed employment benefits Now under the federal Cares Act. Many folks we're getting an extra $600 added every week from the federal government that makes the average unemployment check about equal. To the median pay for working Americans nationwide. That extra payment runs out at the end of July unless Congress renews it. That potential loss of support is what Richmond Federal Reserve Bank President Thomas Parken is called an air pocket in the recovery marketplaces. Mitchell Hartmann has more Advocates for maintaining the payments say they're a crucial financial lifeline for out of work. Americans at a time when new jobs are scarce and going to work could be dangerous due to covert 19. Opponents argue the payments are so high they discourage people from looking for work. Dave Harris of Hoboken, New Jersey, has been on unemployment since March. I didn't really see much of a pay cut it all with that expanded unemployment. He's a car mechanic and still hasn't been called back to his job. I was actually able to use that extra $600 a week to pay down my So my credit cards if the federal payments and he says he'll look for work or go back to school, Miami bartender James Gamboa has been furloughed since March and says the federal monies allowed him to pay his bills. If it runs out, you know, get back in the swing of things. I mean, you hope we can get a handle on the pandemic, A CZ well, he was about to start a new restaurant job. But Florida's recent Koven 19 surge shut the place down. My mental Hartmann for marketplace. United Airlines is preparing to send notices of potential furloughs to almost half of its U. S workforce. That's 36,000 employees and United Workforce is not alone. Marketplaces. Nova Sappho is here with more Hey, Nova, So airlines took money from the U. S government to avoid job cuts. What happened? Well, time ran out. The federal government set aside $25 billion in grants for airlines that helped avoid layoffs so far because the airlines were prohibited from laying off employees until October. The hope was that Corona virus infections will be under better control by summer when vacation travel season heats up. And airlines would recover. Well, that's not happened. Not enough anyway. And so now it's getting closer to October. So United is warning its employees that as many as 45% could get furlough notices. The final number may not be that high, but they have to warn everyone who could be affected under federal labor rules. We know United is not alone, hear what's happening in the rest of the industry. Yeah, Not only is it not alone. But the flight attendants union said that after the furlough announcement that the airline has so far given the most honest assessment on the state of the industry, that's a quote, but other airlines have signaled cuts to come, Delta said potential furlough notices to 2500 pilots, Americans said last week. It has about 20,000 more employees than it needs. So the airline industry basically isn't expecting to recover from this pandemic for several years, and they've been encouraging employees to take voluntary buyouts or early retirement before furloughs kick in. All right. Thanks. Noah, You welcome Take a look at the numbers. This morning s and P futures are up 1/10 of a percent. NASDAQ futures up 6/10 of a percent. Dow futures down less than 1/10 of a percent, just 20 points. The 10 year Treasury yield is at 100.656%. Elon Musk. By the way, says Tesla, a is really close to developing a fully self driving car. He says. There aren't any fundamental challenges left and he thinks we'll have basic functionality. By the end of this year, Tesla stock is up 1.8% in pre market trading. Marketplace Morning report is supported by Fidelity.