By the time Congress got around to passing an extension of emergency jobless benefits last week, Clyde Lance no longer needed them.
On Dec. 17, his 52nd birthday, Lance started a full-time job helping train technicians for the International Society of Automation in Research Triangle Park, North Carolina, ending a three-year search for a permanent position.
“I didn’t even realize it was my birthday,” said Lance. “I believe God helped me, gave me this job.”
The dwindling ranks of the long-term unemployed, while testament to the improvement in the labor market, also shows the diminishing returns from what economists such as Mark Zandi say is one of the most effective government programs implemented to spur the recovery: extended unemployment insurance payments. By the time all figures are in, Lance will be among the almost 1.5 million people who stopped getting those checks last year.
“The bang-for-the-buck from the program is among the highest of any fiscal-stimulus program,” said Zandi, chief economist of Moody’s Analytics in West Chester, Pennsylvania, who estimated that every dollar spent in benefits generated 1.55 times as much economic activity. “It is important to have it in place as long as unemployment is high and the recovery is fragile.”
The legislation passed by Congress last week preserved benefits for harder-hit states that provide payments to the jobless for as long as 73 weeks, extending the normal program that typically lasts for the first 26 weeks of unemployment. About $30 billion in long-term benefits will be paid this year, down from about $45.5 billion in 2012, according to government estimates.
Choosen excerpts by Job Market Monitor from
Among the many spending cuts and tax increases legislated to take effect at the turn of the year, few policies have as direct an effect on those most affected by the Great Recession than the expiration of extended unemployment insurance (UI) benefits. In the first week of January, roughly two million individuals will lose extended … Continue reading »
…Between 2008 and 2011, $174 billion in unemployment taxes was collected while $450 billion was paid out in benefits, a gap of $276 billion. Thirty-four states blew through their unemployment insurance trust funds and borrowed from Washington — and 22 of those still owe the feds a total of more than $30 billion, according to … Continue reading »
Unemployment Insurance / Reduces labor force exit among the unemployed rather than changes reemployment rates
A paper by Jesse Rothstein, a professor of public policy and economics from the University of California Berkeley has made making a lot of noice on the Web. Jesse Rothstein who is also former chief economist at the Department of Labor, provides up-to-date estimates of the ‘generousity’ effect of unemployment insurance benefits (in terms of duration, % of wages replaced, or … Continue reading »
In addition to the tax increases and broad federal spending cuts (known as “sequestration”) scheduled to take effect at the end of this year, the emergency unemployment benefits system is also expected to come to an end. It doesn’t get as much attention as the defense cuts or the tax increases, but the end of … Continue reading »
The recent global economic crisis has served as a stark reminder of why unemployment insurance matters. But the reality is that fewer than half of almost 200 countries monitored by the ILO offer such protection. More than 70 per cent of workers worldwide have no statutory access to unemployment insurance or any type of unemployment … Continue reading »
“Unemployment insurance and other types of social insurance subsidize job separations and thereby result in too many layoffs and too few people employed” writes Casey B. Mulligan in Social Insurance and Layoffs on NYTimes.com. “A variety of programs help workers after they leave a job and do not start a new one, depending on the circumstances … Continue reading »
US – Unemployment Insurance – 711 000 Households with Income of $100,000 or more had received benefits
The report Receipt of Unemployment Insurance by Higher-Income Unemployed Workers (“Millionaires”) by Donald Hirasuna from Congressional Research Service provides information relevant to proposals that would restrict the payment of unemployment benefits to individuals with high incomes. (Adapted excerpts by Job Market Monitor) Summary The economic recession that began in December 2007 officially ended in June 2009 when the U.S. economy reached a … Continue reading »
UPDATE – Bridge to Work | Experiments with unemployment insurance keep benefits to recipients in job training
Turning the Unemployment Program into a Reemployment Program – Official Press Release by DOL Two months ago, the President signed the Middle Class Tax Relief and Job Creation Act of 2012. That legislation extended the vital payroll tax cut and federal unemployment insurance programs that have been so crucial for American families and to the continued … Continue reading»
Pennsylvania millionaire Gene Epstein’s Hire Just One project proposes redirecting unemployment checks to employers as a payroll subsidy reports Newsy. via Newsy | Philanthropist Pitches Jobs Plan to Congress | Multisource Video News Analysis.