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Unemployment Insurance / The bang-for-the-buck among the highest

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

Bloomberg Business Week

via Stimulus From Jobless Aid Fades as U.S. Hiring Grows: Economy – Businessweek.

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Discussion

6 thoughts on “Unemployment Insurance / The bang-for-the-buck among the highest

  1. It sounds really well but i never heard about this insurance but it can help many peoples specially in middle east and Asia where job are very few and population is very high so it can help them to fought against unemployment and it decrease the ratio of crime too.

    Posted by termslifequotes | March 30, 2013, 12:41 am

Trackbacks/Pingbacks

  1. Pingback: US / Unemployment Insurance: Extended benefits have added more than 125 percent over the past two years « Job Market Monitor - January 16, 2013

  2. Pingback: California / Saving Unemployment Insurance | Job Market Monitor - April 19, 2013

  3. Pingback: Yes, Unemployment Benefits may rise Unemployment But … writes Krugman | Job Market Monitor - June 10, 2013

  4. Pingback: Unemployment Insurance in US / Worse than most other developed countries (video) | Job Market Monitor - December 19, 2013

  5. Pingback: Unemployment Insurance in Germany | Job Market Monitor - June 23, 2014

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