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New State Unemployment Claims Rose Again Last Week

The job market remains challenging, with the government reporting Thursday that initial claims for state unemployment benefits rose last week.

A total of 741,000 workers filed first-time claims for state jobless benefits last week, an increase of 18,000, the Labor Department said. It was the second consecutive weekly increase after new claims hit a pandemic low.

At the same time, 152,000 new claims were filed for Pandemic Unemployment Assistance, a federal program covering freelancers, part-timers and others who do not routinely qualify for state benefits. That was a decline of 85,000.

Neither figure is seasonally adjusted.

“It’s surprising and disappointing,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said of the increase in state filings. “But our expectation remains that as large sections of the economy come back online, recovery in the labor market will be ongoing.”

$1,400 stimulus payments for most individuals, which should bolster consumer spending.

Although the rise in regular claims was a setback, the drop in Pandemic Unemployment Assistance claims was encouraging, according to AnnElizabeth Konkel, an economist at Indeed Hiring Lab. “It’s still movement in the right direction,” she said.

Diane Swonk, chief economist at the accounting firm Grant Thornton, said the decline in Pandemic Unemployment Assistance claims could be a sign that the most vulnerable workers were finally benefiting from the uptick in hiring.

“They’ve been living on fumes, but it suggests that some of these gig workers don’t need the unemployment insurance as much as they did before,” she said.

employers added 916,000 jobs in March, twice the gain in February and the most since August. The unemployment rate dipped to 6 percent, the lowest since the pandemic began, with nearly 350,000 people rejoining the labor force.

Still, there is plenty of ground to make up.

Even after the job gains in March, the economy is 8.4 million jobs short of where it was in February 2020. Entire sectors, like travel and leisure, as well as restaurants and bars, are only beginning to recover from the millions of job losses that followed the pandemic’s arrival.

“The claims numbers are a reminder that the labor market recovery, while we still expect it to happen, has a ways to go,” said Nancy Vanden Houten, lead economist at Oxford Economics. “Things are opening up, but not uniformly, and many people are still out of work.”

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Restaurant Workers Are in a Race to Get Vaccines

Over the course of the pandemic, some of the most dangerous activities were those many Americans dearly missed: scarfing up nachos, canoodling with a date or yelling sports scores at a group of friends at a crowded, sticky bar inside a restaurant.

Now, as more states loosen restrictions on indoor dining and expand access to vaccines, restaurant employees — who have morphed from cheerful facilitators of everyone’s fun to embattled frontline workers — are scrambling to protect themselves against the new slosh of business.

“It’s been really stressful,” said Julia Piscioniere, a server at Butcher & Bee in Charleston. “People are OK with masks, but it is not like it was before. I think people take restaurants and their workers for granted. It’s taken a toll.”

The return to economic vitality in the United States is led by places to eat and drink, which also suffered among the highest losses in the last year. Balancing the financial benefits of a return to regular hours with worker safety, particularly in states where theoretical vaccine access outstrips actual supply, is the industry’s latest hurdle.

priority groups this spring. Immigrants, who make up a large segment of the restaurant work force, are often fearful of signing up, worrying that the process will legally entangle them.

Some states have dropped mask mandates and capacity limits inside establishments — which the Centers for Disease Control and Prevention still deem a potentially risky setting — further endangering employees.

“It is critical for food and beverage workers to have access to the vaccine, especially as patrons who come have no guarantee that they will be vaccinated and obviously will not be masked when eating or drinking,” said Dr. Alex Jahangir, the chairman of a coronavirus task force in Nashville. “This has been a major concern for me as we balance the competing interests of vaccinating everyone as soon as possible before more and more restrictions are lifted.”

Servers in Texas are dealing with all of the above. The state strictly limited early eligibility for shots, but last week opened access to all residents 16 and over, creating an overwhelming demand for slots. The governor recently dropped the state’s loosely enforced mask mandate, and allowed restaurants to go forth and serve all comers, with zero limitations.

require their workers be vaccinated in the future.

Many business sectors were battered by the coronavirus pandemic, but there is broad agreement that hospitality was hardest hit and that low wage workers sustained some of the biggest blows. In February 2020, for instance, restaurant worker hours were up 2 percent over a previously strong period the year before; two months later those hours were cut by more than half.

While hours and wages have recovered somewhat, the industry remains hobbled by rules that most other businesses — including airlines and retail stores — have not had to face. The reasons point to a sadly unfortunate reality that never changed: indoor dining, by nature of its actual existence, helped spread the virus.

report by the C.D.C. found that after mask and other restrictions were lifted, on-premise restaurants led to daily increase in cases and death rates between 40 and 100 days later. Although other settings have turned into super-spreading events — funerals, wedding and large indoor events — many community outbreaks have found their roots in restaurants and bars.

“Masks would normally help to protect people in indoor settings but because people remove masks when dining,” said Christine K. Johnson, professor of epidemiology and ecosystem health at the University of California, Davis, “there are no barriers to prevent transmission.”

Not all governments have viewed restaurant workers as “essential,” even as restaurants have been a very active part of the American food chains — from half-open sites to takeout operations to cooking for those in need — during the entire pandemic. The National Restaurant Association helped push the C.D.C. to recommend that food service workers be included in priority groups of workers to get vaccines although not all states followed the guidelines.

Almost every state in the nation has accelerated its vaccination program, targeting nearly all adult populations.

“Most people in our government have considered restaurants nonessential luxuries,” said Rick Bayless, the well-known Chicago restaurateur, whose staff scoured all vaccines sites for weeks to get workers shots. “I think that’s shortsighted. The human race is at its core social and when we deny that aspect of our nature, we do harm to ourselves. Restaurants provide that very essential service. It can be done safely, but to minimize the risk for our staff, we should be prioritized for vaccination.”

Texas did not designate as early vaccine recipients any workers beyond those in the health care and education sectors, but is now open to all.

the Breadfruit and Rum Bar, declined unemployment insurance, and have shied from signing up for a shot. “Before you can even make an appointment you have to put in your name and date of birth and email,” Ms. Leoni said. “Those are questions that are deterrents for people trying to keep a low profile.”

In Charleston, Mr. Shemtov was inspired by accounts of the immunization program in Israel, which was considered successful in part because the government took vaccines to job sites. “If people can’t get appointments, let’s bring them to them.”

Other restaurants are devoting hours to making sure workers know how to sign up, locating leftover shots and networking with their peers. Some offer time off for a shot and the recovery period for side effects.

Katie Button, the owner of Curate and La Bodega in Asheville, N.C.

Still, some owners are not taking chances. “If we go out of business because we are one of the few restaurants in Arizona that won’t reopen, so be it,” Ms. Leoni said. “Nothing is more important than someone else’s health or safety.”

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Unemployment Claims Up a Bit; Manufacturing Gains

A year after they first rocketed upward, jobless claims may finally be returning to earth.

More than 714,000 people filed for state unemployment benefits last week, the Labor Department said Thursday. That was up slightly from the week before, but still among the lowest weekly totals since the pandemic began.

In addition, 237,000 people filed for Pandemic Unemployment Assistance, a federal program that covers people who don’t qualify for state benefits programs. That number, too, has been falling.

Jobless claims remain high by historical standards, and are far above the norm before the pandemic, when around 200,000 people a week were filing for benefits. Applications have improved only gradually — even after the recent declines, the weekly figure is modestly below where it was last fall. Some 18 million people in total are receiving jobless assistance, many of them through programs that extend benefits beyond the 26 weeks that are offered in most states.

But economists are optimistic that further improvement is ahead as the vaccine rollout accelerates and more states lift restrictions on business activity. Fewer companies are laying off workers, and hiring has picked up, meaning that people who lose their jobs are more likely to find new ones quickly.

manufacturing index, a closely watched measure of the industrial economy, hit its highest level since 1983 in March. The report’s employment index also rose strongly, a sign that manufacturers are likely to step up hiring to meet rising demand.

Economists will get a more complete, albeit less timely, picture of the job market on Friday, when the Labor Department releases data on hiring and unemployment in March. Forecasters surveyed by FactSet expect the report to show that U.S. employers added more than 600,000 jobs last month, the most since October.

Even better numbers probably lie ahead. The March data was collected early in the month, before most states broadened vaccine access and before most Americans began receiving $1,400 checks from the federal government as part of the newly passed relief package. Those forces should lead to even faster job growth in April, said Jay Bryson, chief economist for Wells Fargo.

“If you don’t get a barnburner in March, I think you’re probably going to get one in April,” he said.

Virus cases are rising again in much of the country as states have begun easing restrictions. If that upward trend turns into a full-blown new wave of infections, it could force some states to reverse course, which could act as a brake on the recovery, Mr. Bryson warned.

But few economists expect a repeat of last winter, when a jump in Covid-19 cases pushed the recovery into reverse. More than a quarter of U.S. adults have received at least one dose of a coronavirus vaccine, and more than two million people a day are being inoculated. That should allow economic activity to continue to rebound.

Still, Ms. Pollak cautioned that the job market would not return to normal overnight. Even as many companies resume normal operations, others are discovering that the pandemic has permanently disrupted their business model.

“There are still a lot of business closures and a lot of layoffs that have yet to happen,” she said. “The repercussions of this pandemic are still rippling through this economy.”

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I.R.S. will begin issuing tax refunds in May for unemployment tax break.

Taxpayers who received unemployment benefits last year — but who filed their federal tax returns before a new tax break became available — could receive an automatic refund as early as May, the Internal Revenue Service said on Wednesday.

The latest coronavirus relief legislation — signed into law on March 11, in the thick of tax season — made the first $10,200 of unemployment benefits tax-free in 2020 for people with modified adjusted incomes of less than $150,000. (Married taxpayers filing jointly can exclude up to $20,400.)

But some Americans had already filed their tax returns by March and have been waiting for official agency guidance. Millions of U.S. workers filed for unemployment last year, but the I.R.S. said it was still determining how many workers affected by the tax change had already filed their tax returns.

On Wednesday, the I.R.S. confirmed that it would automatically recalculate the correct amount of benefits subject to taxation — and any overpayment will be refunded or applied to any other outstanding taxes owed. The first refunds are expected to be issued in May and will continue into the summer.

an updated worksheet and additional guidance in March for taxpayers that prefer paper.

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Unemployment Claims Are Lowest Since Pandemic Began

The Fed changed its policy framework last year to focus on “shortfalls” from full employment, rather than “deviations.” In practice, that means it does not plan to raise interest rates just because the labor market heats up — for instance, if unemployment drops below historically normal levels — so long as inflation is under control.

“The more vibrant the labor market is, the more likely it is to be an inclusive, vibrant labor market,” Charles Evans, president of the Federal Reserve Bank of Chicago, said on a call with reporters Thursday. “We’re not going to prematurely cut off a vibrant labor market.”

Frequently Asked Questions About the New Stimulus Package

The stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more.

Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read more

This credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.

There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.

The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.

There have been false starts before, namely a burst of growth that faded as the virus worsened in the fall, but last week’s drop in claims was still notable for its size. In February, the economy remained more than nine million jobs short of where it was before the pandemic.

Unemployment claims have been at historically high levels for the past year, partly because some workers have been laid off more than once. Still, the bottom line is that the data recently has been favorable, said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

“Weekly numbers have been choppy but we’ve been on a downward trend since mid-January,” he said. “As more business owners see a reopening will come, they are more willing to hang on to staff.”

Between the state and federal programs, the number of new jobless claims last week was just under 900,000 after being stuck for months above one million a week.

There were 242,000 new claims for Pandemic Unemployment Assistance, a federal program covering freelancers, part-timers and others who do not routinely qualify for state benefits, a decrease of 43,000.

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Unemployment claims drop to a pandemic low as reopenings offer hope.

While vaccination efforts have gathered speed and restrictions on activities have receded in many states, the job market is showing signs of life.

Initial claims for state unemployment benefits fell last week to 657,000, a decrease of 100,000 from the previous week, the Labor Department reported Thursday. It was the lowest weekly level of initial state claims since the pandemic upended the economy a year ago.

On a seasonally adjusted basis, new state claims totaled 684,000.

In addition, there were 242,000 new claims for Pandemic Unemployment Assistance, a federal program covering freelancers, part-timers and others who do not routinely qualify for state benefits, a decrease of 43,000.

Unemployment claims have been at historically high levels for the past year, partly because some workers have been laid off more than once. Much of the drop last week was accounted for by a decline in new claims in Ohio and Illinois, but economists said the overall trend was encouraging.

$1.9 trillion relief package this month, has lifted economists’ expectations for growth, the labor market has lagged behind other measures of recovery.

Still, the easing of restrictions on indoor dining areas, health clubs, movie theaters and other gathering places offers hope for the millions of workers who were let go in the last 12 months. And the $1,400 checks going to most Americans as part of the relief bill should help spending perk up in the weeks ahead.

Diane Swonk, chief economist at the accounting firm Grant Thornton, said she hoped for consistent employment gains but her optimism was tempered by concern about the longer-term displacement of workers by the pandemic.

“The numbers are encouraging, but no one is jumping the gun and hiring up for what looks to be a boom this spring and summer,” she said. “There is a reluctance to get ahead of activity.”

“We’ve passed the point where you can just flip a switch and the lights come back on,” she added. “We need to see a sustained increase in hiring, which I think we will see, but the concern is that it won’t be so robust. It takes longer to ramp up than it does to shut down.”

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Powell and Yellen Tell Senators Economic Support Is Still Needed

America’s top two economic officials told senators on Wednesday that the economy is healing but still in a deep hole and that continued government support is providing a critical lifeline to families and businesses.

The remarks by Jerome H. Powell, the Federal Reserve chair, and Janet L. Yellen, the Treasury Secretary and Mr. Powell’s immediate predecessor at the Fed, before the Senate Banking Committee echoed their testimony before House lawmakers on Tuesday.

Mr. Powell said in his remarks that the government averted the worst possible outcomes in the pandemic economic recession with its aggressive spending response and super-low Fed interest rates.

“But the recovery is far from complete. So at the Fed, we will continue to provide the economy the support that it needs for as long as it takes,” he said.

the recently passed $1.9 trillion relief package, said responding to a crisis with a needed surge of temporary spending without paying for it was “appropriate.”

“Longer-run, we do have to raise revenue to support permanent spending that we want to do,” she said.

She said expanded unemployment insurance, part of the recent relief package, does not seem to be discouraging work and is needed at a time when the labor market is not at full strength.

“While unemployment remains high, it’s important to provide the supplementary relief,” Ms. Yellen said, noting that the aid lasts until the fall. She said the aid should be phased out as the economy recovers.

The Biden administration is also making plans for a $3 trillion infrastructure package, and Republicans on the committee expressed concern about the mounting deficits facing United States.

 stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more.

Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read more

This credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.

There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.

The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.

“I do worry that the Fed may be behind the curve when inflation inevitably picks up,” Senator Patrick J. Toomey, Republican of Pennsylvania, said during his opening remarks.

But Mr. Powell has consistently pushed back on warnings about runaway inflation and did so again on Wednesday.

stuck in the Suez Canal, but also in general as the economy reopens — he struck a similarly unconcerned tone.

“A bottleneck, by definition, is temporary,” he said.

He also batted back concerns about a recent increase in market-based interest rates. The yield on 10-year Treasury notes, a closely watched government bond, has moved up since the start of the year.

“Rates have responded to news about vaccination, and ultimately, about growth,” Mr. Powell said. “That has been an orderly process. I would be concerned if it were not an orderly process, or if conditions were to tighten to a point where they might threaten our recovery.”

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The Week in Business: Go Ahead, Put Off Your Taxes

Good morning and happy spring. Here’s hoping you can enjoy another Sunday spent ignoring your tax returns (or, if you’ve already done them, feeling smug about it). But first, here’s what you need to know in business and tech news for the week ahead. — Charlotte Cowles

Credit…Giacomo Bagnara

Good news for procrastinators like me, or anyone whose taxes were complicated by the pandemic: The Internal Revenue Service has extended the deadline to file taxes by one month, to May 17. The extra time will help people navigate new tax rules that took effect with the passage of the American Rescue Plan. The law made the first $10,200 of unemployment benefits tax-free for people who earned less than $150,000 last year, a significant benefit for many people whose jobs were disrupted. But if you’ve already filed, don’t worry — the I.R.S. said it would automatically send those refunds to people who qualify.

Relations between China and the Biden administration got off to a rocky start last week at the first face-to-face meeting between diplomats. The United States set a confrontational tone on the eve of the talks by imposing sanctions on 24 Chinese officials for undermining democracy in Hong Kong. In turn, China’s top diplomat accused his American counterparts of being “condescending,” among other claims. The purpose of the three-day meeting, according to President Biden’s team, was to find common ground on climate change and on controlling the pandemic, and to address U.S. concerns about Chinese trade and military encroachments. The tension does not bode well for making headway in future negotiations.

suing the Walt Disney Company for what they call “rampant gender pay discrimination” have added another accusation to their list: that Disney “maintains a strict policy of pay secrecy.” A new section of the lawsuit refers to an episode in which one female Disney employee was “disciplined for disclosing her pay to co-workers.” Pay transparency is considered an important part of closing racial and gender wage gaps, and retaliation for discussing your own salary violates California law as well as the National Labor Relations Act. Disney has denied the claims and vowed to defend itself.

Credit…Giacomo Bagnara

Walmart is jumping on the vaccine passport bandwagon, saying it will provide standardized digital vaccination credentials to anyone who gets vaccinated at one of its stores or at Sam’s Club. The retailer will develop a health passport app that people can use to verify their status at airports, schools, sports arenas and other potentially crowded places. Walmart joins an existing push by major health centers and tech companies, including Microsoft, Oracle, Salesforce and the Mayo Clinic, as well as a proposal from the European Union, which would require vaccine verification for travel in certain areas.

How Has the Pandemic Changed Your Taxes?

Nope. The so-called economic impact payments are not treated as income. In fact, they’re technically an advance on a tax credit, known as the Recovery Rebate Credit. The payments could indirectly affect what you pay in state income taxes in a handful of states, where federal tax is deductible against state taxable income, as our colleague Ann Carrns wrote. Read more.

Mostly.  Unemployment insurance is generally subject to federal as well as state income tax, though there are exceptions (Nine states don’t impose their own income taxes, and another six exempt unemployment payments from taxation, according to the Tax Foundation). But you won’t owe so-called payroll taxes, which pay for Social Security and Medicare. The new relief bill will make the first $10,200 of benefits tax-free if your income is less than $150,000. This applies to 2020 only. (If you’ve already filed your taxes, watch for I.R.S. guidance.) Unlike paychecks from an employer, taxes for unemployment aren’t automatically withheld. Recipients must opt in — and even when they do, federal taxes are withheld only at a flat rate of 10 percent of benefits. While the new tax break will provide a cushion, some people could still owe the I.R.S. or certain states money. Read more.

Probably not, unless you’re self-employed, an independent contractor or a gig worker. The tax law overhaul of late 2019 eliminated the home office deduction for employees from 2018 through 2025. “Employees who receive a paycheck or a W-2 exclusively from an employer are not eligible for the deduction, even if they are currently working from home,” the I.R.S. said. Read more.

Self-employed people can take paid caregiving leave if their child’s school is closed or their usual child care provider is unavailable because of the outbreak. This works similarly to the smaller sick leave credit — 67 percent of average daily earnings (for either 2020 or 2019), up to $200 a day. But the caregiving leave can be taken for 50 days. Read more.

Yes. This year, you can deduct up to $300 for charitable contributions, even if you use the standard deduction. Previously, only people who itemized could claim these deductions. Donations must be made in cash (for these purposes, this includes check, credit card or debit card), and can’t include securities, household items or other property. For 2021, the deduction limit will double to $600 for joint filers. Rules for itemizers became more generous as well. The limit on charitable donations has been suspended, so individuals can contribute up to 100 percent of their adjusted gross income, up from 60 percent. But these donations must be made to public charities in cash; the old rules apply to contributions made to donor-advised funds, for example. Both provisions are available through 2021. Read more.

Chief executives from Facebook, Google and Twitter will be grilled in Congress this Thursday, this time over their failure to crack down on the spread of misinformation. Tech executives were last summoned by lawmakers in November 2020, when Mark Zuckerberg of Facebook and Jack Dorsey of Twitter faced a firestorm of questioning about content moderation, mostly regarding their attempts to prevent a wave of falsehoods about the presidential election. This time, they will be asked about coronavirus vaccine misinformation and about the election fraud conspiracy theories that continue to spread on their platforms.

The two biggest names in economic policy — the Federal Reserve chair, Jerome Powell, and Treasury Secretary Janet Yellen — will make their first joint appearance this week when they testify before the House Financial Services Committee on the progress of pandemic relief efforts. The hearing comes one week after the Fed revised its economic outlook to project stronger growth and offered more reassurances that it would keep interest rates near zero for the coming years.

jettisoned a Trump-era policy that limited debt relief for students who were defrauded by for-profit educational institutions. The newly hired Teen Vogue editor, Alexi McCammond, resigned over racist and homophobic tweets that she posted a decade ago. And retail sales dropped 3 percent in February as consumers grappled with declining stimulus effects and devastating winter storms.

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Bank of Japan Will Relax Its Market Stimulus: Live Updates

also lowered bank capital requirements, which drew criticism.

As a result, the debate over whether to extend the exemptions had been a heated one.

Bank lobbyists and some market analysts have argued that the Fed needed to keep the exemption in place to prevent banks from pulling back from both lending and their role as key bond buyers and sellers. But lawmakers and researchers who favor stricter bank oversight argued that the exemption chipped away at the protective cash buffer that banks had built up in the wake of the financial crisis, leaving them less prepared to handle shocks.

The decision the Fed made took a middle road: It both ended the exemption and opened the door to future changes to how the leverage ratio, which banks have long opposed, is calibrated. The goal is to keep capital levels stable, but also to make sure that growth in government securities and reserves on bank balance sheets — a natural side effect of government spending and the Fed’s own policies — does not prod them to pull back.

“Because of recent growth in the supply of central bank reserves and the issuance of Treasury securities, the Board may need to address the current design and calibration of the SLR over time,” the Fed said in its release, adding that the goal would be “to prevent strains from developing that could both constrain economic growth and undermine financial stability.”

The Fed said that it would “shortly seek comment” on measures to adjust the leverage ratio. And it said that it would make sure that any changes “do not erode the overall strength of bank capital requirements.”

Charles Rettig, the Internal Revenue Service commissioner, last year. He said the I.R.S. was planning to automatically issue refunds to taxpayers that were eligible for new tax breaks.
Credit…Anna Moneymaker for The New York Times

Taxpayers who already filed their 2020 returns should not amend them to take advantage of tax breaks that were created by the new $1.9 trillion pandemic relief legislation, the Internal Revenue Service commissioner, Charles Rettig, told lawmakers on Thursday, saying that the I.R.S. would automatically send refunds to those who qualify.

Mr. Rettig, speaking at a congressional hearing, was referring to a provision in the law that provides a tax exemption on the first $10,200 of jobless benefits collected in 2020 by unemployed workers whose households earned less than $150,000.

“We believe that we will be able to automatically issue refunds associated with the $10,200,” Mr. Rettig said.

According to The Century Foundation, about 40 million Americans received unemployment insurance last year.

The tax changes included in the most recent stimulus bill passed earlier this month, along with tax changes in the December aid package and the rush to disburse economic impact payments, have put severe pressure on the I.R.S. The agency said on Wednesday that Tax Day would be pushed back by a month, from April 15 to May 17, to give itself and taxpayers more time to handle returns and refunds.

The Treasury Department and the I.R.S. are also racing to develop new regulations and update systems to reflect other aspects of the March relief law.

Treasury officials said at a briefing on Thursday that they are working with the I.R.S. to develop a new online portal to disburse advance payments for the expanded Child Tax Credit, which will provide up to $3,600 per child under age 6 and $3,000 for children ages 6 to 17, regardless of whether a family earns enough to pay income taxes.

The portal will allow taxpayers to upload relevant data for midyear payment adjustments, such as the birth of a child, the officials said.

Treasury officials also said the department is working on additional guidance on how states can use money included in the relief law. That will include clarity about how states must repay relief funds if they decide to cut taxes after receiving aid.

Government workers have been particularly hit hard by the pandemic. Nearly 1.4 million of the 9.5 million jobs that have disappeared over the past year came from state and local work forces.

State and local government positions account for about 13 percent of the nation’s jobs, and the sector has historically been more welcoming for women and African-Americans, offering an entryway into the middle class.

But a report from GovernmentJobs.com, a recruiting site for public sector jobs, suggests that even in this corner of the economy, applicants who are not white males can be at a disadvantage.

The study, which analyzed more than 16 million applicants by race, ethnicity and gender in 2018 and 2019, found that among candidates deemed qualified for a job in city, county or state government, Black women are 58 percent less likely to be hired than white men. Over all, qualified women were 27 percent less likely to be hired than qualified men.

The disparity was surprising. In a survey of 2,700 applicants, nearly a third said they thought they were more likely to be discriminated against in the private sector than in the public. Black Americans, who make up 13 percent of the population, rely disproportionately on state and local government jobs, making up 28 percent of the applicants for positions.

There are steps that could mitigate bias. The study found that many more Black women were called in for interviews when all personally identifying information was withheld during the application screening process — so recruiters did not know a candidate’s name, race and gender. Using a standardized rubric with specific guidelines for each score also sizably increased the number of Black women called in.

Penisha Richardson, who is 35 and lives in Newport News, Va., is a specialist in technical support at a company making printers and copiers. She remembers that when she was looking for jobs — in the public and private sectors — she got many more responses when she listed her name as Penny instead of Penisha.

“I had one person tell me I should go by Penny because it’s easier to pronounce,” Ms. Richardson said.

Amazon will show Thursday night games on its Amazon Prime Video service.
Credit…Jennifer Stewart/Associated Press

The N.F.L. signed new media rights agreements with CBS, NBC, Fox, ESPN and Amazon collectively worth about $110 billion over 11 years, nearly doubling the value of its previous contracts, Ken Belson and Kevin Draper report for The New York Times.

CBS, Fox and NBC will pay more than $2 billion each to hold onto their slots, with NBC paying slightly less than CBS and Fox, according to four people familiar with the agreements who requested anonymity because they were not authorized by the N.F.L. to speak publicly about the deals. ESPN will pay about $2.7 billion a year to continue airing Monday Night Football, but also to be added into the rotation to broadcast the Super Bowl beginning in 2026. The agreement with ESPN starts one year earlier, in 2022, because its current contract expires one year earlier than the others.

Each of the broadcasters’ deals include agreements for their respective streaming platforms, while Amazon will show Thursday night games on its Amazon Prime Video service.

“Over the last five years, we started the migration to streaming. Our fans want this option, and the league understands that streaming is the future,” said Robert K. Kraft, owner of the New England Patriots and chairman of the N.F.L.’s media committee.

The N.F.L. has not yet announced who will broadcast Sunday Ticket, a subscription service that lets fans watch out-of-market weekend games that are not broadcast nationally. DirecTV has the rights to that service through 2022.

The contracts also set the stage for the league’s owners to make good on plans to expand the regular season to include a 17th game. It will be the first major expansion to the N.F.L. season in more than four decades, when teams began playing 16 games, up from 14, in 1978.

Prices for used cars have soared during the pandemic. Some investors fear that the prospect of excessive inflation in the overall economy will cause Federal Reserve officials to ease up on stimulus efforts.
Credit…Justin Sullivan/Getty Images

European and Asian stocks fell on Friday, following a sharp drop in stocks on Wall Street the previous day.

The Stoxx Europe 600 index fell 0.4 percent, led lower by financial and consumer stocks. The CAC 40 in France dropped 0.6 percent after the government announced Paris and several other regions in France would go into another lockdown beginning at midnight, set to last for a month, to address surging numbers of virus cases filling some French hospitals.

The S&P 500 was set to open little changed on Friday after tumbling 1.7 percent the previous day. The falloff came as government bond yields climbed, raising concerns that faster economic growth would lead to higher inflation and the withdrawal of monetary stimulus by the central bank. Officials at the Federal Reserve have repeatedly said they wouldn’t remove any stimulus without giving markets plenty of warning.

Yields on 10-year Treasury notes fell back below 1.70 percent on Friday. On Thursday, they had reached as high as 1.75 percent.

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