The unemployment benefits of the CARES Act : Expanding the definition of unemployed

If you’ve visited this blog before, you may have come across the official definition of unemployed: One needs to be currently looking for work, ready to work, and willing to work.
There are also requirements for receiving unemployment insurance benefits (e.g., previous work, waiting periods, eligibility periods, and asset tests) that vary across time periods and states. Plus, specific circumstances may affect benefits: How did you lose your job? Did you work sufficiently long before unemployment? Did you wait long enough before making your claim? Has your eligibility expired?
Given all these criteria and the time it takes to process a claim, there should be more unemployed persons overall than persons currently receiving unemployment insurance benefits. But the FRED graph above shows that the impossible has happened: More people are receiving benefits than are unemployed. What gives?
The specifics of the CARES Act allow people to receive benefits so that they do not

Federal Reserve Source

Author: RealEstate