For months now,
we've been following efforts at both the state and national level to
extend unemployment benefits for those still struggling to find work in
this faltering economy. In May, the General Assembly modified state
law so laid-off workers could access a seven-...
For months now, we've been following efforts at both the state and national level to extend unemployment benefits for those still struggling to find work in this faltering economy. In May, the General Assembly modified state law so laid-off workers could access a seven-week extension of unemployment benefits made available under President Obama's economic stimulus package. After the change, which was signed into law by Gov. Pat Quinn in late June, jobless residents became eligible to receive 53 weeks of federal unemployment benefits in addition to 26 weeks of state benefits. But like other states across the country, Illinoisans are finding that benefits are drying up faster than new positions are opening up. The New York Times detailed the problem yesterday:
But unemployment in this recession has proved to be especially tenacious, and a wave of job-seekers is using up even this prolonged aid.
Tens of thousands of workers have already used up their benefits, and the numbers are expected to soar in the months to come, reaching half a million by the end of September and 1.5 million by the end of the year, according to new projections by the National Employment Law Project [NELP], a private research group.
The National Employment Law Project breaks down estimates by state here (PDF). Even though the modernization bill was signed in Illinois, 23,343 workers are expected to lose their benefits by September. In December, that number jumps to 57,624.
Help may be on the way, however. Rep. Jim McDermott (D-WA), chairman of the U.S. House Subcommittee on Income Security and Family Support, told the Times that he would introduce a bill next month to provide another 13 weeks of coverage in states that -- like Illinois -- are experiencing unemployment rates of 9 percent or higher. President Obama's top economic advisers seem on board. Some Republicans, like Sen. Jim DeMint of South Carolina, have also expressed interest in the idea. But the extension will be most valuable if the Congress foots the entire bill. Adding any additional pressure to state unemployment funds could force state governments to borrow more heavily than they already have.
UPDATE (8/26): We've created an open thread for readers to learn about the unemployment insurance process and discuss any questions or advice they have. Follow the link here.
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