It's time to extend unemployment benefits

When Congress passed the recent economic stimulus package that has the IRS preparing $600 checks for most working Americans, another provision in the bill was struck down, by a single vote. That would have extended unemployment (UI) benefits to hundreds of thousands of long-term unemployed workers.

Congress is stepping up pressure to pass a separate bill that would enact the extension, HR 4934 (text here, or summary here). The bill would also fund summer jobs programs for youth, and investments in infrastructure construction projects that would create new jobs, a concept I've written about a lot on this blog.

Under current law (click here for a history of UI), unemployment benefits run out after 26 weeks (6 months). The National Employment Law Project estimates more than 3 million Americans will exhaust their benefits this year. They will be left with no income, and no government support when that occurs. Congress has enacted UI extensions five times, including one G.H.W. Bush signed into law, so this neither unprecedented nor unfamiliar. Newspapers have editorialized in favor of the extension, and even some Republicans are jumping on the bandwagon. Bush rejected the idea again on Monday.

New York Governor David Paterson wrote to his Congressional representatives last week (full letter here) urging passage of the unemployment benefits extension, saying

As you are aware, an extension of UI benefits during a downturn is a particularly effective economic stimulus because the benefits are both well-targeted — to areas and industries most affected by economic slowdowns — and are temporary. It puts money into the hands of workers and families who need assistance the most and are most likely to spend it immediately on basic essentials. Further, the money invested in extended benefits flows immediately to local businesses, which in turn provides an additional economic boost.

Why this provision was cut from the original stimulus package in the first place is a mystery. Six hundred bucks a person is chump change compared to the scope of the growing recession. Let's push Congress to get it right this time.

Image source: Social Security Administration

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Update Apr 17: Welcome to readers arriving from OpenCongress.org. If this is your first time on the Workforce Developments blog, click over to my page for first-time visitors.

Comments

[Laurie]

Come on lets get some extended benefits going. I am a hard worker and have been laid off from full time work since July 2007. My unemployment benefits ended the first of Jan and all I have been able to find is 12 hours of work a week at $8 an hour and I did not get that until the last week of Feb. I could use some help here!!

[Bronwyn]

Good luck, Laurie. I know you're not alone, and I hope your situation improves soon.

Congress needs to hear from all of us about this, not just those who are out of work.

[ross artese]

ive been unemployed since july 2007.. have recently been evicted from my apartment and am homeless.. thanks to the insensitivity of Congress and our so called leader who really doesnt seem to care,
more homless people are on there way if something doesnt happen soon. We need relief from the vicious circle of unemployment homlessness etc... What was Congress thinking? why was something not done? Why Is Bush Not IMPEACHED YET?Am I Angry ?Bitter?
ABSOLUTLEY..I could still be in my apartment trying to find work
instead of on the street trying to find a place to sleep.Honestly I think MR.Bush Is trying to create Homlessness Not help Eliminate It.
Thank You Mr Bush For all youve done To help. your A winner A TRue
American Politicle leader.For the People By the people I Think Not.
I Call On Congress AND Bush To DO what Is Right And Pass WHat needs to be passed Now .Oh lets NOT forget That half of Congress is Under Investigation as well. HMMMM lets see who goes to Jail.... I will Be holding my Breath and trying to stay Alive.

[Argh]

I've been unemployed since November. And I've been trying to find work for MONTHS!! Even the temp agencies are slow, and when I do work with them, I can't interview for a new position. My unemployment ran out months ago, and the debt collectors are calling at all hours. Where is my $600 going? Bills. Such a silly move on Bush's part. He is so detached...

[Bronwyn]

Thanks for adding your comments and reminding us that behind the unemployment stats are real people. It truly is time to extend unemployment benefits.

I hope all of you land a good job soon.

[Kristie]

Please tell us all the MOST EFFECTIVE way as a group to have our voices heard. There is power in numbers and whatever is done has to have a signifigant amount of support behind it. We can't just "write our congressional members" that is a trickle effect. We need to know will be EFFECTIVE. The job market is scary and unless you've been there done that you have no idea.

[Bronwyn]

You're absolutely right, Kristie. If you haven't been there, you don't really know how tough it is. That's why it's so important for people who are living it right now to speak out.

Believe it or not, writing to your member of Congress is worthwhile. Most people don't, so most Congresspeople never hear from ordinary citizens. If you want to have a bigger impact, get together with a group of friends and you can all write your letters and mail them together. Tell your story, and specifically ask your representative to vote for the bill to extend unemployment benefits.

While you and your friends are writing letters, write one to your local newspaper too. Editors need to know their readers care about this, and other readers need to hear that people in their own community are hurting.

The National Employment Law Office has created a website to advocate for extending unemployment benefits: http://www.unemployedworkers.org . You can join in the discussion on their Worker Forum, and sign up to get updates on other actions you can take. They also list some resources to help job seekers.

If any other readers can suggest other ways Kristie and others can get their voices heard, please let me know.

[Kristie]

Thanks for your answers and help. Unemployment is not my way of life and I'm sure it is not the way of life for 99% of the people who are now jobless. It has been a very humble experience and I have learned that being unemployed has a horrible stigma attached. My benefits ran out two weeks ago. We have a child in college and my benefit check was covering her rent. She is not qualified for ANY grants or FASFA money due to our 2007 tax return (because our combined income was tied into my previous employment)a Home equity loan is out since our home has DECREASED in value and student loans are hard to find plus interest rates are high. We are struggling to pay bills with one income not to mention health care costs. We have done everything right in the past and now I feel like we need just alittle help along with the other thousands who just need to eat. I guess that is hard to understand when you are living in the best public housing (the White House) and receiving free lifetime health care ect...like Geroge Bush is.

[Bronwyn]

You tell your own story well, Kristie, and I know you're not alone. Thanks for sharing it. Good luck with your job hunt, and managing these tough times. The economy will turn around - I hope that happens soon.

[Kristie]

The US Senate and House will take up on the floor the EXTENTION OF UNEMPLOYMENT BENEFITS May 14, 2008. YOU MUST EMAIL your rep. and ask for his/her vote in favor of this. You can find the link to all email addresses on this home page or Google search the name of your rep. I emailed Sunday and again today! PLEASE PLEASE PLEASE help yourself survive and be heard.

[Holly]

Let's all hope that our prayers get answered today.

[Kristie]

Hope everyone has email their US Congress and Senate Rep. If you did not PLEASE DO SO NOW. You are either part of the problem or an active part of the solution, you choose!

[Bronwyn]

Thanks for keeping us posted, Kristie.

[ken fisher]

I RAN OUT OF BENEFITS 4/2006 , IF THEY PASS THE EXTENSION FOR THE 26 WEEKS WILL I BE RECIEVE ANY OF THIS MONEY?

[Bronwyn]

Ken, it depends on how Congress works out the details. One good place to get find who can answer your question is your local Career One-Stop. If you don't know where that is, follow this link to search: http://www.careeronestop.org/findos/default.aspx

You might also want to check out some of the resources listed here at UnemployedWorkers.org: http://www.unemployedworkers.org/resources_for_workers/index.cfm

Good luck.

[Larry]

please pass this I've not been able to find work since July 2007

[Nancy]

I've been contacting members of the House and Senate since I read the Washington Post article that said the jobless benefits would probably be dropped from the war funding bill. I was laid off last spring, called back this January but only for three months.

I hope everybody else does their part to make our elected officials aware of the fact that we are their ultimate boss and, they too, could be unemployed sometime soon!

[Bronwyn]

Excellent point, Nancy.

For readers who haven't seen the most recent update (as of June 6, 2008), click here for more info:

Congress on the verge of dropping unemployment extension
http://workforcedev.typepad.com/workforcedev/2008/06/congress-on-the.html

[Pat Day]

It would be a mistake not to extend unemployment benefits, (1) It will keep monies flowing within the system, which is needed to help people to continue to pay mortgages, buy food, pay bills, etc. (2) It will allow additional time for the government to get the new financial regulations in place which is forth coming in the banking system. (3) If the extension takes effect soon benefit payouts will be added to 2009 income tax gross, which will increase the amount the of tax the IRS will collect for 2009 and also increase income tax revenue to all 50 states, in other words there will be a return that will lower the initial payout cost, (5) Lets not forget that is was the taxpayer that bailed out Bear Sterns an investment firm, not a bank and indirectly JP Morgan, a bank, the reason little to almost no government regulation. (4) This will allow the unemployed to continue to look for work while the government looks at all options to lower fuel prices. (5) It is the right humanitarian thing to do.

[Michael Griffith]

I've been unemployed since the end of December 2007. With a shortage of jobs, and the cost of fuel so high that I have to limit my area of search (both in consideration of a shortage of current funds due to the small amount of the unemployment checks, and the cost of commuting
should I actually find a job) there are even fewer opportunities to choose from. I have only a few more weeks of unemployment left, and we have already exhausted our savings making up the difference to pay the mortgage and utilities. ( I Thank God that my wife still has her job)!
I am training for a new career while looking for work, but the state (California) has refused to extend my benefits to provide time to finish the course. It would be great if Congress would extend benefits to help all of us through these difficult times. In the end though, since I don't need money to vote, I agree with some other posters who say that our Senators and Representatives should look to their own as well, because if they will not help us, THEY need to be looking for work, and I will happily vote against them at the next opportunity.

[kendratwins]

I was let go from my company a week before Thanksgiving (2007) due to a company merge. They told us we would be told ahead of time... 2 days.. that was it and we were gone. This is the worst time to have no job.. the job market is terrible. I have sent resumes to companies who have no jobs posted because I have run out of options. I have read on other sites about people are saying that unemployment is a hand out.. people don't want to work.... people should have prepared and saved money. Well I will say my husband and I have saved .. our savings are so low... I have been looking for a job since day one. I rather make $1050.00 every 2 weeks.. instead of $700.00... I am thankful I had unemployement but I would rather be working. There is no reason why they cannot give extensions.. Americans need it. I have even tried to get a job making $7.15 per hour and they are not even hiring... no one is. I hope this gets better quick... we can't cut back on anything else... what is next.. people are not even buying FOOD...

Jevic one of the biggest trucking companies closed its doors 1 months ago... no warning.. just closed. I applied for one job 3 months ago and the guy at the interview told me that he got over 150 resumes... yeah.. the job market is bad... I didn't get that job.. they decided not to hire anyone at the time because they were slow... 1 of 3 let downs...my spirits are in the dumps. We need a extension NOW!

[Kristie]

Does anyone know what is going on with the extension debate? I know it did pass congress and know it is in the senate... but what is the status and what is the hold up? I assume the sense of urgency is just not there and therefore this is not important?! AND I guess the new unemployment numbers released last week didn't stimulate the need?? Any info anyone may have would be gratefully appreciated. God bless you all!

[Bronwyn]

Kristie, the most recent action took place on June 12, when the House passed it as a standalone measure. It's not clear when the Senate will take up the measure.

For my most recent post on the issue:
http://workforcedev.typepad.com/workforcedev/unemployment/index.html

For a recent New York Times article on the June 12 vote:
http://www.nytimes.com/2008/06/13/washington/13jobless.html?scp=1&sq=unemployment+benefits&st=nyt

[kristie]

Bronwyn, does that mean it will be debated alone and NOT part of the war funding bill that is scheduled for vote Thu 6/19? Will it be debated and voted on before they recess for July 4th vacation? Give me a break it's been 9 weeks!

[Bronwyn]

My understanding is that the unemployment provision was removed from the war funding bill, in order to keep that bill moving forward. It's not clear when the Senate will take up the stand-alone unemployment extension measure the House passed last week.

It seems you may be right that the "sense of urgency" Congress had earlier, has waned.

If any readers have more up-to-date info than this, please pass it along.