Showing posts with label jobless benefits. Show all posts
Showing posts with label jobless benefits. Show all posts

Saturday, December 8, 2012

Older, Eager, and Unemployed: When Even Santa Can’t Get a Job


by Greg Kaufmann
 

In May 2012, Richard Crowe was laid off when the steel mill where he had worked for thirty-four years was shut down. He’d worked there since graduating from high school. New ownership filed for bankruptcy.

“The judge threw the workers’ contract out, the owners walked away with $20 million, and we got nothing,” says Crowe, who is 54, and lives in eastern Ohio.

Seven months later, Crowe is one of 5 million “long-term” unemployed workers in the US who have been looking for work for more than six months. They are disproportionately older (over 50), women, and minorities, and according to Friday’s jobs report, their employment prospects haven’t much improved.

If Congress doesn’t extend the unemployment insurance program by the end of this year, 2 million of these workers will lose their benefits between Christmas and New Years Day; another 1 million by April 2013; and over 5 million people will be without benefits by the end of 2013, according to the National Employment Law Project (NELP). This would occur at a moment when there are still 12 million people unemployed, and there are approximately 3.4 unemployed applicants for every available job opening. (it's more than 12 million unemployed and more than 5 million long-term unemployed but his heart is in the right place--jef)

“The jobs are still not there,” says Edith Harrison, 59, who lives in Colorado Springs and was laid off from her job at a senior assisted living facility in August. “How can you cut unemployment benefits off, and blame someone for not being able to get a job, when they didn’t create the situation?”

“I worked all my life. I paid into unemployment, I paid into Social Security, I paid into everything. I want off this unemployment, I want a job.”

The antipoverty effect of unemployment insurance is significant and undeniable. In 2010, the program lifted 3.2 million people above the poverty line (less than $18,000 for a family of three). In 2011, it lifted 2.3 million people above the line, including 620,000 children. (The program had less of a poverty reducing effect last year in part because a provision in the Recovery Act that paid an additional $25 per week in benefits was allowed to expire.) The average benefit is just $291 per week and it covers approximately 40 percent of a typical family’s food, housing, and transportation costs.

What is most egregious to both Harrison and Crowe is the stereotype—voiced by people who want to cut the program or drug test benefit recipients—that unemployed people are lazy and would rather collect modest benefits than work.

“It’s funny, but it’s pathetic—a lot of people think you’re out here for a handout,” says Crowe. “I worked all my life. I paid into unemployment, I paid into Social Security, I paid into everything. I want off this unemployment, I want a job.”

In fact, Crowe has applied for 157 jobs. He and his wife are willing to relocate—they put their son through college and he is now living independently. Crowe has applied for jobs in Nevada and South Carolina—in the steel industry and in new lines of work.

“In the steel industry, companies are hiring 20 year olds that have never even been in a mill before, and passing on people like me—an experienced operator and maintenance technician,” says Crowe. “Then you go look at other jobs and they say ‘you don’t have no experience.’”

He recalls applying for a job delivering packages for UPS. The interviewer looked over his resume and asked, “Pretty much you worked in the mill all your life?”

“Yeah,” Richard told her.

“Have you ever had any experience delivering packages?”

“I felt like telling her, ‘Yeah, once a year, I play Santa Claus,’” he tells me, laughing. “This is the stuff you go through.”

Harrison says she gets up early every morning—“ just like I’m going to work”—drinks her coffee, and gets on the computer to search for jobs. (this is what nearly all unemployed people do. They want jobs so they treat their job search like a job--jef)

“Retail, restaurants and customer service—most of the jobs out there—they say they want people who are ‘high energy’ for a ‘fast-paced environment’,” she says. “I’m not saying I can’t do it, but I’m 59, and if they have a choice they’re going to take the person who’s younger.”

Crowe also thinks his age is making it difficult for him to land a new opportunity. He has applied for many jobs knowing that he’s overqualified, including warehouse work. Often, he doesn’t even receive a reply, and sees the jobs still being posted months later.

“It’s my age holding me back. I can’t prove that, but I’m getting that feeling after going through all this,” he says. “If they see a 5 or 6 in front of your age—I’m just visualizing when people look at that they just laugh and throw your application off to the side.”

Unemployment benefits are a lifeline for Harrison and Crowe. In 2002, Harrison was laid off from her job as a secretary for the local school district. (She had also previously worked as a secretary in Detroit Public Schools for nineteen years, and as a case manager and skills development specialist for Goodwill Industries.) She ended up homeless, and sleeping on couches in the homes of families and friends. She fears it could happen again.

“I don’t want to go through that again,” she says. “How can you find a job if you don’t have anyplace to stay? When you’re out there, your life is just all up in the air. It takes a long time to come back from that.”

Harrison says her $227 per week benefit helps her “keep the lights on” and pay the rent.

Crowe receives $382 per week and says it covers his utilities and his car payment. He and his wife are also using their retirement savings “just to survive.”

“If they don’t renew these benefits, I won’t have any income,” says Crowe. “I’ll lose my house, I’ll lose everything.”

Judy Conti, federal advocacy coordinator for NELP, says she is “cautiously optimistic” that unemployment insurance will be reauthorized for 2013—either as part of any “grand bargain” or a more limited package of cuts and revenues prior to January 1. She notes that the $30 billion program was included in President Obama’s initial offer to Republicans to avert the fiscal cliff. She also says NELP has had lengthy and productive conversations with Democratic leadership, staff members for most of the Democratic Senate Caucus, and many House members as well.

“All of them really do understand how important and crucial this program is right now,” says Conti.

On the other hand, conservatives continue to demand that any reauthorization of unemployment insurance must be paid for, but Conti says that that shouldn’t be difficult to achieve through any bill that includes significant cuts and savings.

“We’re not really seeing the same kind of pushback we have seen in previous years,” says Conti, “where Representatives have wanted to change the nature of the program, or beat up on the unemployed as lazy.”

It also can’t hurt that Mark Zandi, chief economist of Moody’s, estimates that every $1 in unemployment benefits generates $1.61 in economic activity—since those benefits are spent so quickly. Also, the Congressional Budget Office found that reauthorizing the program for 2013 would create 300,000 jobs.

While she waits to see how this plays out in Congress, Harrison is doing her best to keep her spirits up.

“I used to stay on that computer from the beginning of the day to nighttime looking for work,” she said. “I would have a headache, wouldn’t even eat—had to make myself eat. Now I try to keep balance—get up early in the morning, get on that computer—and after so long and so many resumes, I stop. You don’t want to make yourself sick. I just stay prayerful.”

As for Crowe, he says the ordeal has taken a toll on his family—especially his wife, who he says “worries every day” as they try to cobble together enough money through unemployment benefits, her low-wage work, and their retirement savings.

“I’m doing everything in my power that I can, but I can’t make someone hire me,” he says.

Read more of this post, including relevant numbers and additional resources, here.

Friday, February 17, 2012

CBO: Longest Period of High Unemployment Since Great Depression

Source: US News - February 17, 2012
After three years with (U3) unemployment topping 8 percent, the U.S. has seen the longest period of high unemployment since the Great Depression, the Congressional Budget Office noted in a report issued today.

And, despite some recent good news on the economic front, the CBO is still predicting that (U3) unemployment will remain above 8 percent until 2014. The report also notes that, including those who haven’t sought work in the past four weeks and those who are working part-time but seeking full-time employment, the (U6) unemployment rate would be 15 percent.


The CBO made its comments in a report examining the long-term effects of joblessness, and possible policy options to boost employment, including unemployment insurance reforms and job training programs. The report came at the request of  Michigan  Democratic Rep. Sander Levin, but Republicans quickly jumped on the chance to bash President Obama’s stimulus program, which is also reaching its three-year anniversary today.

Friday, August 13, 2010

New claims for unemployment aid reach 484K

New applications for jobless benefits rise to highest since February as layoffs continue
CHRISTOPHER S. RUGABER
AP News | Aug 12, 2010 09:27 EDT

The employment picture is looking bleaker as applications for jobless benefits rose last week to the highest level in almost six months.

It's a sign that hiring is weak and employers are still cutting their staffs.

First-time claims for jobless benefits edged up by 2,000 to a seasonally adjusted 484,000, the Labor Department said Thursday. Analysts had expected a drop. That's the highest total since February.

Initial claims have now risen in three of the last four weeks and are close to their high point for the year of 490,000, reached in late January. The four-week average, which smooths volatility, soared by 14,250 to 473,500, also the highest since late February.

Analysts said that the unexpected rise in claims suggests hiring in August won't be much better than July. The economy added a net 12,000 jobs last month after excluding the loss of temporary census positions.

The jobless claims report "represents a very adverse turn in the labor market, threatening income growth and consumer spending," Pierre Ellis, an economist at Decision Economics, wrote in a note to clients.

The prospect of more layoffs added to this week's grim outlook for the economy, which began Tuesday when the Federal Reserve lowered its assessment of the recovery.

Investors were bracing for another rocky day on Wall Street. Dow Jones industrial average futures, which were down about 50 points before the report came out, fell further. They were down nearly 90 points before the market opened.

Economists closely watch weekly claims, which are considered a gauge of the pace of layoffs and an indication of employers' willingness to hire.

The government's July jobs report, released Friday, showed that the economy lost a net total of 131,000 jobs last month. Excluding the impact of the elimination of 143,000 temporary census jobs, the economy added a meager 12,000 positions, as layoffs by state and local governments almost canceled out weak hiring by businesses.

Thursday's report on jobless claims indicates that trend may not change soon. Claims fell steadily last year from their peak of 651,000, reached in March 2009. But they have mostly leveled out this year at or above 450,000. In a healthy economy with rapid hiring, claims usually drop below 400,000.

The rise in claims could be a sign private employers are ramping up layoffs, which declined as recently as June, according to a separate government report released Wednesday.

Some economists speculate that many census workers whose jobs are finished are requesting unemployment benefits.

Claims could also be rising because of large job cuts by state and local governments, which are struggling with unprecedented budget gaps. State and local governments cut 48,000 jobs in July.

Another possibility is that small companies, facing tight credit, are still reducing their staffs, even as larger corporations slowly resume hiring.

The total number of people receiving benefits dropped 118,000 to 4.45 million, the department said. But that doesn't include another 5.3 million people receiving extended benefits paid for by the federal government, as of the week ending July 24, the latest data available.

During the recession, Congress added up to 73 extra weeks of unemployment benefits, on top of the 26 usually provided by states. That extended program lapsed in early June but was reinstated by Congress last month.

Some companies are still cutting workers. Medical products manufacturer CareFusion Corp. said Wednesday it plans to eliminate 700 jobs, saving the company up to $120 million a year.

Thursday, June 17, 2010

Jobless aid bill hits deficit wall in Senate

By ANDREW TAYLOR, Associated Press Writer – Wed Jun 16, 2010


WASHINGTON – President Barack Obama's plea for more stimulus spending as insurance against a double-dip recession hit a roadblock in the Senate on Wednesday, the victim of election-year anxiety over huge federal deficits.
A dozen Democrats joined Republicans on a key 52-45 test vote rejecting an Obama-endorsed, $140 billion package of unemployment benefits, aid to states, business and family tax breaks and Medicare payments for doctors because it would swell the federal debt by $80 billion.
The swing toward frugality runs counter to the advice of economists who support the bill's funding for additional jobless benefits and help to states to avoid layoffs of public service jobs. They fear that the economy could slip back into recession just as it's emerging from the biggest economic downturn since the Great Depression.
Federal Reserve Chairman Ben Bernanke warned last week that while lawmakers need to come up with a plan for tackling the nation's long-term deficit crisis, the U.S. recovery is still fragile. It's too early for large, immediate spending cuts, Bernanke said.
"We've got to do more to build on the existing jobs momentum and that's what these targeted measures are about," said White House economist Jared Bernstein.
The Senate earlier passed another version with even bigger deficits. But that was before tea party-backed candidates running on anti-deficit, anti-big government platforms began knocking off more established politicians in spring primaries.
Despite the loss, Democratic leaders predicted serenely that a scaled-back version of the measure — extending unemployment benefits for the long-term jobless and providing $24 billion in aid to the states — could pass, possibly as early as later this week, after relatively minor revisions.
"We need to change a few things," said Majority Leader Harry Reid, D-Nev.
Later Wednesday, Finance Committee Chairman Max Baucus, D-Mont., unveiled a new, slimmer version of the bill that he predicted would "provide a path forward."
But Republicans cautioned that the margin of Wednesday's vote was a bad sign for a bill that, even after revisions, would still likely add more than $50 billion to deficits over the next decade. Democrats would need 60 votes, 15 more than they got Wednesday, to prevent Republicans from blocking the bill.
"All I can tell you is that consensus about borrowing, debt, spending is growing stronger in our caucus and I think it is in the Democrats' as well," said Sen. John Thune, R-S.D.
Obama renewed his push for the measure last weekend, warning that "hundreds of thousands" of state and local government jobs could be lost without $24 billion in Medicaid money to help states balance their budgets and $23 billion more to prevent layoffs at local school districts around the country.
The new version released Wednesday afternoon would roll back last year's $25-a-week increase in unemployment checks and give doctors just a six-month reprieve from scheduled cuts in their Medicare payments instead of relief through 2011.
A new tax on investment fund managers — who presently pay taxes on much of their income at the 15 percent capital gains rate instead of the 35 percent top income tax rate — was pared back for venture capitalists. It would impose regular income taxes on only 50 percent of profits that are the result of sales of assets held for five or more years.
The lost receipts would be replaced with still more revenue from an increase in the per-barrel tax paid into the oil spill liability trust fund. Now limited to 8 cents a barrel, the tax would rise more than six-fold to 49 cents a barrel under the latest version of the bill — instead of 41 cents under the version killed on Wednesday.
But top Democrats were standing strongly behind $24 billion in help to state governments for the Medicaidhealth program for the poor and disabled. Some 30 states have incorporated the money into their budgets for the fiscal year starting July 1 and governors say that without it, they'll have to lay off thousand of workers.
"The effect on the economy of not doing this ... would be disastrous," Pennsylvania Democratic Gov. Ed Rendell said. "If we lose this (Medicaid) money, we will have to lay off 20,000 people."
"If states don't get this aid, they will be cutting payrolls very aggressively and it is a serious threat to the recovery," said Mark Zandi, chief economist at Moody's Analytics.
The renewed stimulus money is part of a catchall measure combining the jobless aid and help for states with the renewal of dozens of popular tax breaks for businesses and individuals, including a property tax deductionfor people who don't itemize, lucrative credits that help businesses finance research and develop new products, and a sales tax deduction that mainly helps people in states without income taxes.
The urgency to pass the measure is palpable since Medicare announced earlier this week that a 21 percent cut in reimbursements to physicians would take effect on Friday. And by the end of the week, more than 900,000 people out of work for more than six months will have been ineligible to apply for continued benefits, according to the latest Labor Department estimates.

"Drug Tests for the Unemployed!" -- Senator Orrin Hatch

By John Byrne
Wednesday, June 16th, 2010

Though the Clinton Administration passed a law years ago allowing states to test welfare recipients for drug abuse, one Republican senator wants to go farther: require drug tests of anyone who applies for government assistance.

Sen. Orrin Hatch (R-UT) offered an amendment Tuesday that would require drug tests for those who seek welfare and unemployment benefits. States have the authority to enact drug testing requirements for their welfare programs under the 1996 Welfare Reform Act, signed into law by President Bill Clinton, but they are not mandated to conduct tests under current law.

"This amendment is a way to help people get off of drugs to become productive and healthy members of society, while ensuring that valuable taxpayer dollars aren't wasted," Hatch said of his proposal. "Too many Americans are locked into a life of a dangerous dependency not only on drugs, but the federal assistance that serves to enable their addiction."

An advocate for the poor lambasted the idea.

"If people who need all kinds of help can't get certain kinds of help, that is just not right," Linda Hilton of the Crossroads Urban Center in Salt Lake City told the Salt Lake Tribune. She added that she "couldn't fathom the idea of denying assistance to a person with an alcohol dependency, and she worries it could punish entire families for the addiction of a parent."

A press release from Hatch's office said that any "money saved as a result of this amendment would be used to reduce the deficit."

But Hilton countered that the amendment would actually cost the government money, because federal officials would have to free up more funding for alcohol and drug treatment programs.

The Hill noted that: "Hatch introduced an amendment to the tax extenders bill that would require those who are applying for some of the benefits in that bill, including unemployment and welfare benefits, to pass a drug test in exchange for the benefits.

"Under the Hatch amendment," the paper continued, "individuals who fail to qualify for benefits because they failed a drug test wouldn't necessarily be jailed, but would be enrolled in a state or federal drug treatment program."

Monday, April 12, 2010

33 states out of money to fund jobless benefits

33 states out of money to fund jobless benefits

By Hibah Yousuf, staff reporter
April 9, 2010

NEW YORK (CNNMoney.com) -- With unemployment still at a severe high, a majority of states have drained their jobless benefit funds, forcing them to borrow billions from the federal government to help out-of-work Americans.

A total of 33 states and the Virgin Islands have depleted their funds and borrowed more than $38.7 billion to provide a safety net, according to a report released Thursday by the National Employment Law Project. Four others are at the brink of insolvency.

Quirky budget cuts

From police horses to fireworks to wrangling stray chickens, these cash-strapped cities are eliminating all kinds of services.

Debt-challenged California has borrowed the most, totaling more than $8.4 billion, followed by Michigan and New York, which have loans worth more than $3 billion. Nine other states have borrowed at least $1 billion from the federal government.

"The nation's financing system for jobless benefits is under unprecedented stress," said Andrew Stettner, deputy director of the New York-based advocacy group for the unemployed. "While the recession has certainly made things worse, this funding crisis has been developing for years."

At the onset of the recession, only 19 states met the recommended funding level, which is one year of reserves equal to the highest amount of unemployment insurance paid out during prior recessions.

Financing experts suggest that states build up their jobless benefit coffers during strong economic times so that they can draw from them during downturns.

Federal and state governments collect money for unemployment benefits by taxing employers on a small portion of their employee wages. While total wages and weekly jobless benefit levels have been rising, governments haven't increased the taxable base wages at the same pace.

Instead, they adopted a "pay as you go" approach, keeping taxes and fund levels low during good times and raising taxes and cutting benefits when strapped for cash. That left many states with insufficient jobless funds to weather the recession.

Jobless claims soar
Of the 13 states that will likely be able to fund jobless benefits without borrowing from the feds, 10 of them followed the recommended financing tactic. That readied them for the recession, the National Employment Law Project concluded in its study.

"The current crisis should compel policy makers to forge a new path to forward financing of the unemployment insurance program," Stettner said. "As the broke funds of 33 states makes clear, unemployment insurance reserves need to be stocked up before recessions hit so that states are prepared."

States out of $$$ for the jobless
Here's how much they’ve borrowed from the federal government.

State Borrowed
California $8.40 billion
Michigan $3.78 billion
New York $3.00 billion
Pennsylvania $2.81 billion
Ohio $2.23 billion
North Carolina $2.14 billion
Illinois $2.06 billion
Texas $2.03 billion
Indiana $1.81 billion
New Jersey $1.55 billion
Florida $1.50 billion
Wisconsin $1.34 billion
South Carolina $851 million
Kentucky $760 million
Missouri $687 million
Minnesota $638 million
Connecticut $422 million
Georgia $337 million
Nevada $331 million
Arkansas $318 million
Virginia $317 million
Massachusetts $279 million
Alabama $268 million
Rhode Island $204 million
Colorado $186 million
Idaho $181 million
Maryland $104 million
Kansas $65 million
New Hampshire $23 million
South Dakota $23 million
Vermont $23 million
Arizona $22 million
Virgin Islands $13 million
Delaware $1 million