On Monday, University of Illinois economist J. Fred Giertz predicted that Illinois will experience a "painfully slow" recovery period as it fights its way out of the national recession. If the new national jobs report is any indication, other states are going to experience similar difficulties.

In July, the United States lost 131,000 jobs. Private companies hired just 71,000 workers overall. State and local governments shed 48,000 jobs. And 6.6 million Americans now consider themselves among the long-term jobless. "With the end of the inventory cycle, a huge wave of state and local cutbacks, and further declines in house prices on the way," writes economist Dean Baker, "the situation looks bleak for the second half of 2010."

After months of dithering, some lawmakers in Congress have started to take notice of the employment crisis. Facing a constant stream of Republican filibusters, Democrats were finally able to pass an extension of the filing deadline for emergency unemployment benefits in late July. This measure will provide a crucial emergency safety net for laid off workers, at least through November. The majority party is also poised to squeak through a state assistance bill that will help protect against education layoffs and Medicaid cuts.

Still, these cumulative achievements inadequately address the deep problems afflicting the job market. To date, Congress has all but ignored Americans who have been out of work longer than 99 weeks, which is the maximum length of insurance support available. The Illinois Department of Employment Security says there are currently 36,000 "99ers" in the Land of Lincoln and 1.4 million across the country, a figure that has jumped sixfold in just three years. On Thursday, U.S. Sen. Debbie Stabenow (D-MI) formally introduced a bill (co-sponsored by Illinois' own U.S. Sen. Dick Durbin) that would create an additional tier of benefits for this pool of workers, but few on Capitol Hill think it has the legs to pass. After all, the Senate can't even find the monies needed to continue funding through FY 2011 for a successful stimulus program that gives private employers subsidies to hire (for $10-per-hour) Illinoisans eligible for the Temporary Assistance for Needy Families (TANF) program.

Some Illinoisans -- including unemployed workers, community organizations, service providers, and members of the state's largest labor unions -- took to the streets today to demand more action. This morning, more than 200 people converged on LaSalle Street in Chicago's financial district to urge for an extension of the TANF program. The Chicago Jobs with Justice Coalition also held a press conference during which they demanded immediate action on job creation and called on legislators to hold Wall Street accountable for the economic downturn. Here's a slideshow from the event, courtesy of Heather Stone:

The value of the TANF program is that it simultaneously spurs consumer demand while offering an alternative to unemployment insurance for low-income individuals. In that sense, it saves Illinois from having to borrow additional funds to fill its now-bankrupt unemployment benefit fund. Already, the state has borrowed roughly $2.2 billion from the federal government to capitalize the account. Next year, it will have to pay 4 percent interest payments on those loans, as well. (The interest requirement was waived last year as part of the stimulus bill and has not been extended.)

Previously, we've gathered some ideas from economists about how Congress, state governments, and employers can work together to begin paying down this accumulated debt. On Wednesday, Stateline's Joey Peters did the same. The piece highlights Washington State, where businesses and lawmakers agreed on a set of taxes that kept the unemployment trust fund well-funded throughout the current recession. It's a topic lawmakers in Springfield should start to think about when they head back into session this winter.