Unemployment Update – August 26, 2011: The Debate Over Unemployment Extensions Continues

While major events such as Libya, earthquakes, hurricanes, and the stock market are dominating the news, the discussion of unemployment benefits has received less coverage recently. Nevertheless, unemployment continues to impact the lives of millions of Americans, and deserves attention.

Below are a few important updates regarding unemployement benefits.

Unemployment Compensation for Striking Workers

Workers who walk of the job are typically not eligible for unemployment benefits. Some states have made exceptions to this, however. As such, the new claims for unemployment benefits recently went up, as thousands of striking Verizon workers filed for unemployment benefits.

Congress Continues the Debate Over Unemployment Extensions

The debate in Congress over unemployment benefits retains the theme that has persisted over the last couple of years:

• Democrats want to maintain unemployment extensions, or add additional extensions.
• Republicans want to reduce extensions, or at least find a way to fund the extensions without adding to the national debt.

This debate will likely persist until new legislation is agreed upon.

Tier 5 Benefits?

Millions of “99ers” have exhausted their 99 weeks of unemployment insurance (note: in some states fewer weeks were available). Representatives Barbara Lee and Bobby Scott continue to fight for their proposed Tier 5 bill, H.R. 589 – The Emergency Unemployment Extension Act – which would add up to 14 weeks of additional benefits. They argue that unemployment benefits act as a stimulus to the economy, as Americans who receive benefits generally spend this money, therefore putting it back into the economy.

A New Jobs Program?

President Obama is expected to annouce a new jobs program after Labor Day. The details of this program are unknown, but analysts have suggested that it may entail infrastructure projects or job re-training.

What’s Next?

Congress is out for “recess” through the end of this month, with many politicians on vacation. They return to work in September, at which point debates will resume, and more details should emerge regarding new legislation and programs.

We will continue to keep you updated on these and other unemployment-related items, as information becomes available.