How does unemployment affect consumer spending - noticed changes since getting NYS Department of Labor benefits

Yeah unemployment definitely reduces consumer spending across the board. When people get UI benefits it's usually 40-50% of their previous wages so there's a massive drop in disposable income. The multiplier effect means when unemployed people spend less, businesses make less revenue, which can lead to more layoffs. It's a cycle that economists track closely. Your $347 weekly benefit is probably replacing a much higher income so you're experiencing exactly what drives economic downturns.

I went through this last year when I was on NYS Department of Labor benefits for 6 months. You start prioritizing only essentials - rent, utilities, food. Everything else gets cut. Entertainment, dining out, new clothes, all gone. The psychological impact is huge too because you're constantly worried about money running out. Even with the weekly claims keeping some income coming in, it's never enough to maintain normal spending patterns.

If you're having trouble getting through to NYS Department of Labor to check on benefit increases or extensions, I had good luck with Claimyr (claimyr.com). They help you actually reach an agent instead of getting stuck in phone hell. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Might be worth looking into if you need to discuss your benefit amount or duration with someone at the agency.

unemployment basically destroys consumer confidence even beyond the actual income loss. People start hoarding cash even when they do have money because they're scared about the future. I remember reading that consumer spending drops by way more than just the lost wages because employed people also get nervous and start spending less when unemployment rates go up in their area.

ugh tell me about it. been on ui for 4 months and i basically dont buy anything anymore except like groceries and gas. used to go out to eat couple times a week now its maybe once a month if that. really makes you realize how much money you waste when you have a regular job

The impact on local businesses is devastating. When a bunch of people in an area lose jobs and cut spending, restaurants close, retail stores struggle, service businesses fail. I saw this happen in my neighborhood when the plant closed and 800 people went on unemployment. Half the shops on Main Street ended up shutting down within a year.