rssWe Need New Adjectives for the Unemployment Debate
Friday, April 16, 2010 at 1:03 pm
- 14 Comments
Last night, Congress passed — and President Obama signed into law — legislation that provides a short-term benefit extension for the long-term unemployed. The bill is designed to allow lawmakers more time to negotiate a longer-term benefit extension for the long-term unemployed.
Confusing? You bet.
And there seem to be several factors contributing to the puzzlement.
1) The extension of benefits is not quite an extension of benefits. The four tiers of federal help will remain four tiers of federal help. What had expired April 5 — and what Congress just extended until June 2 — was the filing deadline for accessing the next level of benefits if (1) you live in a state that makes you eligible for the next level of benefits, and (2) your most recent benefits expired, or were set to expire, after April 5. But if you’ve exhausted all the benefits for which you’re eligible, this bill doesn’t help you. And neither will the next one.
2) The mingling of state, federal and state-federal programs — combined with the tiered system of federal benefits — is in itself baffling. The rules differ for different states, but generally it works like this:
- State benefits run a standard 26 weeks, after which the federal help kicks in.
- The federal help — dubbed Emergency Unemployment Compensation (EUC) — is temporary, which is why Congress keeps having to step in to extend it. EUC is divided into four tiers. Tier I runs for 20 weeks; Tier II for 14 weeks; Tier III is 13 weeks, but only for states with unemployment rates higher than 6 percent; and Tier IV is 6 weeks, but only for states where jobless rates top 8.5 percent. So altogether, EUC provides a maximum of 53 weeks of benefits on top of the 26 weeks of state help. (Max total combined = 79 weeks).
- States also offer something called the Extended Benefits (EB) program, which is a joint venture combining state and federal funds for a maximum of 20 additional weeks of benefits (though some states offer only 13 weeks). With state budgets in crisis mode from the recession, Congress has stepped in to assume 100 percent of the cost of this program. The bill that passed yesterday extends that enhanced federal funding to ensure that states don’t drop the program altogether. (States usually direct unemployed residents to the EB program only after they’ve exhausted all EUC benefits. EUC, after all, is guaranteed to be paid 100 percent by Washington, whereas states will eventually be responsible for some of the EB costs.)
- So all told, unemployed workers could be eligible for a maximum of 99 weeks of benefits between the three programs (26 + 53 + 20).
The Center on Budget and Policy Priorities, a liberal policy shop, has a nice summary of state-specific benefits here. But the best way to confirm eligibility rules is to contact your state labor department.
3) The terminology being used in this debate — particularly the vague but oft-cited “long-term unemployed” category — is beginning to lose its meaning as the jobs crisis grows longer. Meaning: The Department of Labor defines the long-term unemployed as those who’ve been out of work longer than 27 weeks — a category that now boasts 6.5 million unfortunate members (representing a startling 44 percent of all jobless Americans). Yet this could include those in the earliest stages of their EUC benefits — folks who could have nearly 18 months of benefits remaining (assuming that Congress continues to extend the deadline). And there’s very little data to break down that category further to learn, for example, how many people have exhausted all of their EUC benefits, and now have nowhere to turn for help. Anecdotally, we’re hearing of more and more folks falling into this category (just read the comment threads on this site). Yet no one seems to be counting them to gauge the necessity of, say, a fifth tier of emergency help.
The Department of Labor does break down the long-term unemployed a bit — tallying those who’ve been out of work between 27 and 51 weeks, and those who’ve been unemployed longer than 52 weeks. But those numbers are crunched only on an annual, not a monthly, basis. And, again, they do nothing to reveal how many folks might have exhausted all of their federal benefits.
Still, even those broad categories are enough to indicate a troubling trend. From 2008 to 2009, the percent of the unemployed folks who’d been out of work between 27 and 51 weeks jumped from 9.1 percent to 15.2 percent, DOL reports. For those unemployed longer than 52 weeks (the super long-term unemployed?), the rate jumped from 10.6 percent in 2008 to 16.3 percent last year.
The trend begs a question: Though the Dow has rebounded and Wall Street bankers are back enjoying their bonuses, can we really call it a recovery when millions of willing workers still can’t find a decent job?
14 Comments
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Comment posted April 16, 2010 @ 6:10 pm
For those people who have exhausted all 99 weeks of benefits (i.e. exhausted Tier IV), your voices need to be heard.
Please sign the petition for more weeks (Tier V) at:
http://www.change.org/petitions/view/the_99ers_…
Comment posted April 16, 2010 @ 6:47 pm
Ive Signed how ever if you listen to the news they DO NOT mention that this is just an extension of the filing date They make it sound like a tier 5 has been signed into law
Comment posted April 16, 2010 @ 6:56 pm
FLORIDA Is A Right To Work State And My Right To Work Has Been VIOLATED!!!
Comment posted April 16, 2010 @ 7:43 pm
I have exhausted all of my benefits, and still haven't found even a minimum wage job. I have sent e-mails, signed petitions, made calls…it just seems noone is listening, unless they're in the same situation.
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Comment posted May 28, 2010 @ 1:42 am
If anyone is still reading this, no tier 5 is in the works, nor will be in the next debate right now. The news always makes it sound like benefits are being extended for everyone when most of the time they are just moving the deadlines for the newer folks.
I work for the state unemployment office and I really do feel for those that are in their late 50s and 60s as their job prospects are very low, especially if they've worked in manufacturing all their lives – jobs that moved oversees and aren't coming back.
But for many of the people, they don't want to accept a job that pays less than their current UC and with all the extensions, literally think its just going to keep going on. 3 yrs ago, when I was unemployed for the first time after an 18 yr career ,I got a waitress job after my 26 wks because I was done. No extensions, Now I'm currently making half of what I did 3 yrs ago and bring home $200 less every 2 wks than our highest collectors.
It's very frustrating to hear these people say they're being offered jobs but they refuse to take a pay cut, especially when it pays the same as their EUC. So they keep collecting waiting for the glory days to return. At some point you just have to suck it up and take something that pays less. I mean, after 99 wks of unemployment, what company is going to take you seriously at this point if you haven't even done part time work during the downturn when our state allows working part time while collecting?
Yes, different parts of the country are having more difficult times than others and I realize this. I also realize that you can't live on $12 an hr or less if you don't have dual incomes. But when guys are turning down $20 hr jobs because they used to make $25 an hr you really have to wonder just how much of these long termed unemployed are doing so by choice simply because the extensions never stopped, until 3/27 when the first batch of 2008ers lost their benefits completely.
Comment posted June 3, 2010 @ 2:46 am
I have a question, If I havent exhauseted all fourth tiers, , then i should be having to claim the euc bennifits, i am so confused rite now, I just got laid off for the second time i worked for all sfe industries fr a year got laid off in 2009 started collecting 3 months of my first tier bennifts , but after that i got a job for five months, and just recently got laid off, this year may 28 2010 which would star my 2nd tier rite , is all the bennifts going to expire for the peple that has been on benniftis for a fourt tier or for everyone:
Comment posted July 28, 2010 @ 8:16 am
But for many of the people, they don't want to accept a job that pays less than their current UC and with all the extensions, literally think its just going to keep going on. 3 yrs ago, when I was unemployed for the first time after an 18 yr career ,I got a waitress job after my 26 wks because I was done. No extensions, Now I'm currently making half of what I did 3 yrs ago and bring home $200 less every 2 wks than our highest collectors.
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