- The benefits extension legislation currently on the table would allow unemployed individuals access to the current programs available to them now and allow states to receive federal funding to continue offering these programs.
Millions of Americans have been relying on unemployment benefits to get by in this down-economy. Although the massive amounts of layoffs have since slowed down, the consequences are affecting the country and millions of Americans are still out of work.
In this new era when job security is both elusive and unheard of, and hundreds of people clamor for the same job, procuring any kind of employment may seem like a far away dream. In December 2010, the federal government extended unemployment benefits for an additional 13 months on top of the regular 6 months, to give unemployed individuals more time to look for work. But many individuals remain out of work and the extended unemployment benefits are set to expire on January 1, 2012 if Congress does not approve another extension.
A rejection of the extension would leave many unemployed Americans in serious financial straits. Read Unemployment Benefits Explained.
When an individual becomes unemployed, he/she may be eligible for financial benefits from the government. Each state has its own set of rules for qualifying and applying for these benefits. The typical length of time for receiving government benefits is up to 6 or 7 months, or 24 or 26 weeks, and includes a percentage of earnings from the last held job before becoming unemployed. Other benefits may include job search assistance, resume writing or health insurance. Extended government funded benefits are offered in times of high state- or country-wide unemployment for unemployed individuals who have used up all of their regular benefits.
Of the roughly 13.1 million Americans who are unemployed as of October 2011, 43.8 percent of them have been unemployed for longer than 27 weeks. Meanwhile, the cost of living has jumped up 3.5 percent from October 2010 to October 2011. So while 13.1 million Americans are now earning a small percentage of what they had earned in the past from being employed, these same Americans are faced with consumer products that cost them more to purchase than in previous years. Should the unemployed benefits extension expire on January 1, 2012, 5.7 million Americans may not even have the small percentage of what they used to make to pay for consumer products that have increased in value over the last year. Couple that with the difficulty of trying to figure out how to get off of unemployment as many of these individulas are.
46.2 million Americans are deemed to be living at or below poverty level. Thanks to government funded benefits for the unemployed, 3.2 million Americans were kept out of this poverty in 2010. Once those benefits have run out and if those Americans are unable to secure employment, another 3.2 million people may be added to the 46.2 million who are already living in poverty. Extending benefits may mean millions less Americans struggling with poverty but it also means the government must overextend itself to provide the relief for these individuals, with a price tag of $56.5 billion dollars each time they extend the benefits.
Experts say that cutting off unemployment benefits will force individuals to look for work, arguing that perhaps those receiving benefits are not even looking for a job. Other individuals wonder how long the government can bail out the American people without going under itself. And others ponder the points of poverty and what the country is coming to or what it may become. Experts have also concluded that the extended benefits have and do stimulate the economy and add to its growth. Congress’ Joint Economic Committee discovered that ending extended benefits actually costs the economy $80 billion, much less than the $56.5 billion it cost to keep it going.
With good, solid arguments on both sides of the coin, Congress has been meeting to determine whether or not to lengthen the extension that is already in place into 2012. With a decision still waiting in the wings, Congress broke for the Thanksgiving holiday and when they return, will continue their debate. January 1, 2012 is when the unemployed benefits extension is set to expire and millions of Americans could potentially be without any income. The benefits extension legislation currently on the table would allow unemployed individuals access to the current programs available to them now and allow states to receive federal funding to continue offering these programs.
http://www.bls.gov/news.release/empsit.t12.htm
http://www.bls.gov/news.release/cpi.t01.htm
http://www.huffingtonpost.com/2011/09/13/us-poverty-rate-2011_n_959936.html
http://money.cnn.com/2011/08/16/news/economy/obama_payroll_tax_unemployment_benefits/index.htm