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Two Million Americans Losing Unemployment Benefits, California Most Affected

Kevin Douglas Grant |
December 1, 2010 | 9:46 a.m. PST

Executive Editor

The holiday season will be particularly challenging for two million Americans whose unemployment benefits will lapse this month.

800,000 of them will stop receiving checks in the next few days.

Most of those hitting the wall are part of the federal extended unemployment insurance program, which is available for up to 73 weeks after 26 weeks of state unemployment runs out. 

Long-term unemployed Americans are finding it excruciatingly difficult to reenter the work force.  24/7 Wall St. reports:

"What sets the Great Recession apart from other economic downturns is the huge numbers of unemployed and the length of time they are out of work. Federal Reserve Chairman Ben Bernanke recently commented that 'This is very unusual and very worrisome because people who are out of work for an extended period, their skills tend to erode.' That process of eroding skill along with an abiding hopelessness will only get worse as nearly 4 of 10 out of work Americans have been unemployed for over half a year."

California, with an unemployment rate of 12.4 percent (more than 3 percent above the national average), will suffer more than 400,000 residents losing benefits. It has the third-highest rate in the nation:

"California has more residents at risk of losing unemployment benefits than 36 other states and Washington D.C. combined." 

Congress is deadlocked about how to fund another extension of benefits, despite the fact that "the nonpartisan Congressional Budget Office has called jobless aid one of the best ways of boosting the economy because the payments support consumer spending."  

The same programs are credited with keeping 3.3 million Americans out of poverty last year.

Things may finally be coming around, however, based on information released Wednesday: "U.S. private sector payrolls rose by the biggest amount in three years in November, lifting optimism about the job market ahead of Friday's key employment report, while manufacturing data showed growth was intact."

That will be little comfort for those still outside the work force with the holidays fast approaching.

 

 

 

 

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