A different bill extending unemployment benefits was signed into law in 2008
The Legislation:
The Emergency Extended Unemployment Insurance Compensation Act extends federal unemployment insurance by 13 weeks for workers who have exhausted their 26 weeks of regular unemployment benefits. The bill eliminates a requirement that individuals work a minimum number of weeks prior to collecting unemployment benefits. The legislation authorizes an additional 13-week extension in states with unemployment rates of 6.0% or higher for a total of 26 additional weeks of benefits. The temporary extension, which will cost $10 billion over ten years, expires in March of 2009.
The Middle-Class Position:
The Middle Class Supports. The American economy remains at risk of recession and a growing number of middle-class Americans fear being thrown out of work as a result of the downturn. The unemployment rate jumped 0.5% from April to May of 2008, the largest single-month increase since 1986. 8.5 million Americans are out of a job and the percentage of workers who are underemployed – a measure that includes individuals who are working part-time because they cannot find full-time work – is 9.7%. 1.6 million people, or 18% of the unemployed, have been unemployed for 27 weeks or more. Unemployment benefits provide direct assistance to the current and aspiring middle-class Americans likely to be hardest hit during the economic downturn, people who want to work but have lost their means of support through no fault of their own. Moreover, the unemployed are most likely to spend their unemployment benefits immediately, providing an economic jolt that will enhance the stimulus generated by the tax rebates sent out earlier this year. Indeed, extension of unemployment benefits provides $1.64 in stimulus for every dollar spent, making the policy one of the most effective stimulus measures.
From the Experts:
“Regardless of whether the economy is technically in a recession, growth has been so sluggish that job prospects are poor – especially for the long-term unemployed, the group that would benefit from a temporary UI [Unemployment Insurance] extension…Weakness and the prospect of further labor market deterioration are sources of concern not only for the long-term unemployed and their families but for the economy as a whole. Congress can remedy the situation by sending the President a bill that would help the people hardest hit by the sluggish economy and boost the economy at the same time with one of the fastest acting and most effective forms of stimulus available.” – Chad Stone, Chief Economist, Center on Budget and Policy Priorities (6/6/2008)
“Despite the current relatively low unemployment rate, long-term unemployment is already a problem that merits prompt action and it is only expected to get worse as the economic downturn deepens. For individuals seeking work in this economy, the search is likely to be long, putting an enormous strain on the families of the over two million workers projected to be long-term unemployed in the next 15 months. We strongly urge Congress to extend unemployment benefits immediately.” – Heidi Shierholz, Economic, Economic Policy Institute (4/10/2008)
Beyond this Bill:
As the employment picture darkens, Congress must pass legislation that extends unemployment insurance. Indeed, the ranks of the long-term unemployed are growing at the same time that the economy as a whole is losing jobs. The tax rebate package that Congress passed earlier this year should be supplemented by an unemployment benefits extension that will both assist the unemployed who are struggling to make ends meet and benefit the economy as a whole.
Percentage increase in the unemployment rate from April to May of 2008: 0.5
Most recent month in which a similarly large increase in the unemployment rate occurred: 2/1986
Estimated percentage of the unemployed who will be unemployed for longer than six months by the end of 2009, according to the Economic Policy Institute: 20.8
Number of states with an unemployment rate greater than 6.0% as of April 2008, including Washington D.C.: 5
Amount of stimulus produced for every $1 spent on extending emergency federal unemployment insurance benefits, in dollars: 1.64
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