With no job recovery in clear sight, the hardest-hit states will include California, New York, Florida, Texas, Illinois, and Michigan.
By Daniela Perdomo, AlterNet
Posted on December 8, 2009, Printed on December 9, 2009
http://www.alternet.org/bloggers/www.alternet.org/144441/
Obama announced a $210 billion job creation plan today -- and it's a well-timed announcement what with a new study detailing just how many millions of Americans will be losing their unemployment checks in the first quarter of 2010.
The Center for American Progress (CAP) and the National Employment Law Project (NELP) released a report yesterday that gets down to the very nitty-gritty of our country's unemployment woes. The study estimates that in January, one million Americans will lose their unemployment benefits -- and by the end of March, a total of 3.2 million workers will lose that very essential lifeline.
And what a lifeline it has been for many of those hardest hit by the recession! The American Recovery and Reinvestment Act (ARRA), signed into law in February, extends federal unemployment benefits to laid-off workers by a considerable amount, from the average of 26 weeks to 73 weeks. It also includes a weekly $25 benefit payment and a 65 percent COBRA insurance subsidy.
Experts generally agree that the unemployment rate -- currently at 10 percent -- hasn't hit rock bottom yet, even though there was a bit of a bounce in November. In fact, we may not reach that pinnacle of misfortune until spring or even summer next year. But no matter whether we have already reached that low point or are yet to, we can certainly expect that the unemployment rate will remain in the double-digits throughout 2010.
And remember -- the official unemployment rate only includes people "actively" looking for work, which means the number leaves out everyone who's given up and all those who are underemployed.
So with at least 10 percent of Americans -- that's 30 million people -- unemployed, is Congress going to make a move to keep at least some of these people out of cardboard boxes?
The CAP/NELP report makes the completely sensible suggestion that the Recovery Act be extended once more. In November, Congress authorized the extension of emergency employment compensation by 14 to 20 weeks -- and while certainly a crucal quick-fix, it won't be enough to tide so many millions of Americans over until there are actually jobs to hire them for.
Here's a breakdown of which states will see the most dropped-off beneficiaries in the first three months of 2010: California (588,913), Florida (314,264), New York (238,619), Illinois (192,965), Michigan (183,996), Texas (195,687).
And, of course, it's not just about millions losing their unemployment checks -- by the end of this month, the COBRA subsidies will be over, leaving millions more uninsured -- a particularly devastating caveat in this country. Further, states will have to start dipping into their unemployment trust funds, to foot bills they can't possibly afford in the long- or even short-term.
But there may be good news. Two bills have been introduced to extend ARRA -- one in the House and another in the Senate. They were both introduced mid-last week, and have been read and referred onto special committees.
As is usually the case with Congress, we can now only wait and hope that they legislate with conscience. Let the "welfare state" accusations begin.
Daniela Perdomo is a contributing editor & writer at AlterNet. You can follow her on Twitter @danielaperdomo.
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