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1.3 million losing unemployment benefits

  • FILE - 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.


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