Big Losses for Nontraditional Workers in U.S.

More Than 40% of Nontraditional Workers Had Hours Cut or Lost Jobs Because of COVID-19

New survey finds that more than 10% made withdrawals from retirement accounts in early months of the pandemic

The COVID-19 pandemic and efforts to contain it brought record unemployment to American workers, affecting those in traditional as well as nontraditional jobs, such as online and freelance work and operating a small business. According to the federal Bureau of Labor Statistics, the overall unemployment rate reached 14.7% in April 2020, growing 10.3% from just the previous month—the highest rate and largest month-over-month increase on record, dating back to 1948. Among unincorporated self-employed nontraditional workers, unemployment increased from 3.4% in March to 9.7% in April before declining slightly to 8.1% in June.

The Pew Charitable Trusts conducted a survey of nontraditional workers from June 4 to July 1, 2020, just as COVID-19’s economic impact was peaking, and found that 44.3% of respondents had experienced COVID-19-related reductions to job hours or lost their jobs. In addition, 10.5% had tapped retirement savings—making a withdrawal from a workplace defined contribution plan or IRA—between March and June 2020, which underscores the need for policies that help nontraditional workers, and all workers, shore up their finances with savings that can be used in emergencies.

President Joe Biden will seek $80 billion to fund enhanced Internal Revenue Service enforcement of high-earners to help pay for his American Families Plan, which he is set to unveil later this week, two sources briefed on the proposal told CNN.

The administration believes the enhanced measures to crack down on tax evasion will increase revenue for the government by $700 billion, although some outside experts are skeptical and the Congressional Budget Office -- the accepted scorekeeper -- is unlikely to project that much revenue.

As CNN has reported, this is a component of how Biden plans to finance his proposal, with the tax increases on the individual side for the wealthy making up a more significant and tangible chunk.

Asian Americans recorded the fastest population growth rate among all racial and ethnic groups in the United States between 2000 and 2019. The Asian population in the U.S. grew 81% during that span, from roughly 10.5 million to a record 18.9 million, according to a Pew Research Center analysis of U.S. Census Bureau population estimates, the last before 2020 census figures are released. Furthermore, by 2060, the number of U.S. Asians is projected to rise to 35.8 million, more than triple their 2000 population.

Hispanics saw the second-fastest population growth between 2000 and 2019, followed by Native Hawaiians and Pacific Islanders (NHPI) at 70% and 61%, respectively. The nation’s Black population also grew during this period, albeit at a slower rate of 20%. There was virtually no change in the White population.

It's not just Americans in their 20s, 30s and 40s who are looking for relief from student loan debt. An estimated 8.4 million people in their pre-retirement years are burdened with school debt, too — from their own time in college decades earlier or from loans taken out for children or grandchildren.

Student loan debt held by borrowers in their 50s and 60s is growing rapidly and threatening retirement security, a study says.

Some of that debt could be erased if President Joe Biden uses his executive authority to forgive as much as $50,000 in student loan debt per borrower. He’s facing mounting pressure to take action — and alarming numbers of baby boomers and older Gen Xers are among those hoping he does something soon.

WASHINGTON, D.C. - This week, the U.S. House of Representatives passed seven bipartisan bills introduced by House Financial Services Committee Members.

The House passed the SAFE Banking Act (H.R. 1996), a bipartisan bill by Representative Ed Perlmutter (D-CO), which would help ensure cannabis businesses operating in nearly all states that have legalized its use have access to basic banking products and services, by a vote of 321-101.

The House passed the following measures en bloc by a vote of 355-69:

The Promoting Transparent Standards for Corporate Insiders Act (H.R. 1528), a bill by Representative Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, which would direct the Securities and Exchange Commission to study and report on possible revisions to regulations regarding 10b5-1 trading plans; such plans allow certain employees of publicly traded companies to sell their shares without violating insider trading prohibitions. The SEC must revise regulations consistent with the results of the study.

A group of lawmakers recently urged President Joe Biden to prioritize unemployment insurance reform in the upcoming American Family Plan.

“The COVID-19 pandemic has revealed many cracks in our country’s unemployment insurance (UI) system. The problems go far beyond the administrative and technological challenges states have faced in paying out benefits,” the letter stated. “The system also fails to respond to economic downturns, to reach enough workers, or to provide adequate benefits. Workers of color are disproportionately affected by these failures. We urge you to include substantial and permanent UI reform in your Build Back Better plan so that UI will meet the needs of all workers who lose their jobs through no fault of their own.”

The letter was signed by Senate Finance Committee Chair Sen. Ron Wyden (D-OR) as well as Sens. Michael Bennet (D-CO), Jack Reed (D-RI), Ben Cardin (D-MD), Alex Padilla (D-CA), Sherrod Brown (D-OH), Bernie Sanders (I-VT), Richard Blumenthal (D-CT), Tammy Baldwin (D-WI), Mazie Hirono (D-HI), and Chris Van Hollen (D-MD). It was also endorsed by several House members, including the chair of the Joint Economic Committee Rep. Don Beyer (D-VA).

In testimony before the House Energy and Commerce Subcommittee on Consumer Protection and Commerce, the Federal Trade Commission asked Congress to pass legislation that would revive the FTC’s ability to return money to their constituents who were harmed by law violations and to stop that illegal conduct from reoccurring.

Testifying on behalf of the Commission, Acting FTC Chairwoman Rebecca Kelly Slaughter told the Subcommittee that legislation such as H.R. 2668, introduced last week, is urgently needed in light of an April 22 ruling by the U.S. Supreme Court that eliminated the FTC’s longstanding authority under Section 13(b) of the FTC Act to recover money for harmed consumers, as well as other recent court rulings that have jeopardized the FTC’s ability to enjoin illegal conduct in federal court.

The Consumer Financial Protection Bureau (CFPB) has issued an interim final rule supporting the Centers for Disease Control and Prevention (CDC)’s eviction moratorium.

The agency’s guidance requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium, authorities noted. The CDC established the eviction moratorium to protect the public health and reduce the spread of coronavirus.

Per the CFPB, debt collectors evicting tenants who may have rights under the moratorium without providing notice of the moratorium or misrepresent tenants’ rights under the moratorium can be prosecuted by federal agencies and state attorneys general for violations of the Fair Debt Collection Practices Act (FDCPA). Additionally, officials indicated violators are also subject to private lawsuits by tenants.