Stimulus Update: How Can We Expect Stimulus Checks When Jobless Claims Keep Dropping?

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The latest unemployment data makes stimulus relief unlikely in the near term. 

Inflation has been hammering consumers for well over a year. And at this point, a lot of people are tired of raiding their savings and racking up debt on their credit cards just to do basic things like pay their rent and put food on the table.

Last year, the federal government did not issue any stimulus aid, though some states stepped up to send relief checks to qualifying residents. But if you’re wondering whether a 2023 stimulus check is likely, so far, the answer seems to be “no.” In fact, recent unemployment data makes it even more clear that a stimulus check is something Americans might need to write off in the near term.

Jobless claim are decreasing

In the past, lawmakers have turned to stimulus checks at times when unemployment was rampant, and when the economy clearly needed a boost. Stimulus checks were issued during the Great Recession that lasted from 2007 to 2009, and they were also issued at several points during the pandemic.

The reason stimulus checks did not come into play in 2022 was that the economy had recovered from the pandemic by then. For all of 2022, unemployment levels remained low. And while some economists may have feared that jobless rates would start to tick upward in 2023, so far, we’re not seeing that.

In fact, the Bureau of Labor Statistics just released data for the week ending Jan. 14. That week, weekly jobless claims came in at 190,000, representing a decrease of 15,000 from the previous week. All told, the four-week moving average for jobless claims was 206,000, a decrease from the previous week’s 212,500 jobless claims.

In other words, the unemployment situation has not gotten worse in January. Obviously we’re not done with 2023, and a lot could happen over the next 12 months. The point, however, is that based on the unemployment data we have, consumers should not expect a stimulus check from the federal government anytime soon.

Coping with inflation without a stimulus check

If you’re having a hard time paying your bills due to inflation, you’re not alone. But before you resign yourself to having to deplete your savings or rack up a mountain of debt, look at other ways to make things work financially. That could mean cutting back on a few expenses or taking on a side hustle.

All of this positive job market data tells us that it’s still a good time to go out and pick up work on the side. That extra money could make it easier to cover your bills until inflation drops to a more moderate level and living costs start to decline to a more notable degree.

And to be clear, inflation has been on a decline since peaking in mid-2022. So there’s reason to be hopeful that the cost of living will subside in time.

But we may not get there for a while. And there may not be a stimulus check anytime soon. So the best hope for those who are struggling is to get as creative as possible with their finances while seeking out added opportunities to earn money.

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