57°
Cloudy
THU
 66°
 47°
FRI
 60°
 42°
SAT
 64°
 45°
SUN
 66°
 43°
MON
 76°
 44°

1.3 million losing unemployment benefits

  • This Aug. 14, 2013 file photo shows job seekers checking out companies at a job fair in Miami Lakes, Fla. More than 1 million Americans are bracing for a harrowing, post-Christmas jolt as federal unemployment benefits come to a sudden halt this weekend. The development entails potentially significant implications for the recovering U.S. economy and sets up a tense battle when Congress reconvenes in the new year. (AP Photo/Alan Diaz, File)

WASHINGTON — More than 1 million Americans are bracing for a harrowing, post-Christmas jolt as extended federal unemployment benefits come to a sudden halt this weekend, entailing potentially significant implications for the recovering U.S. economy and setting up a tense battle when Congress reconvenes in the new year.

For families dependent on cash assistance, the end of the federal government's "emergency unemployment compensation" will mean some difficult belt-tightening as enrollees lose their average monthly stipend of $1,166.

Jobless rates could drop, but analysts say the economy may suffer with less money for consumers to spend on everything from clothes to cars. Having let the "emergency" program expire as part of a budget deal, it's unclear if Congress has the appetite to start it anew.

An estimated 1.3 million people will be cut off when the federally funded unemployment payments end Saturday.

Some 214,000 Californians will lose their payments, a figure rising to more than a half-million by June, the Labor Department said. In the last 12 months Californians received $4.5 billion in federal jobless benefits, much put back into the local economy.

More than 127,000 New Yorkers also will be cut off this weekend. In New Jersey, 11th among states in population, 90,000 people will immediately lose out.

Started under President George W. Bush, the benefits were designed as a cushion for the millions of U.S. citizens who lost their jobs in a recession and failed to find new ones while receiving state jobless benefits, which in most states expire after six months. Another 1.9 million people across the country are expected to exhaust their state benefits before the end of June.

"When Congress comes back to work, their first order of business should be making this right," President Barack Obama said last week at his year-end news conference.

But Obama has no quick fix. He hailed this month's two-year budget agreement as a breakthrough of bipartisan cooperation while his administration works with Democratic allies in the House and Senate to revive an extension of jobless benefits for those unemployed more than six months.

comments powered by Disqus
© The Press Democrat |  Terms of Service |  Privacy Policy |  Jobs With Us |  RSS |  Advertising |  Sonoma Media Investments |  Place an Ad
Switch to our Mobile View