Unemployment Benefits: Democratic Governors Call On Congress To Keep Benefits

WASHINGTON -- A coalition of Democratic governors called on lawmakers in a Thursday letter to reauthorize long-term unemployment benefits, a move that's been tangled up in a debate now threatening to shut down the government at the end of the week.

"Now is not the time to turn our backs on hard-working Americans," the governors wrote. "Individuals who are laid off through no fault of their own rely on these funds to support their families."

Republicans want to slash federal benefits by more than half, with some members arguing that the extended compensation in place since 2008 discourages the jobless from seeking out new work. Congressional Democrats have countered with a report, released Thursday, that finds workers who are eligible for benefits search for work more vigorously than workers who are not eligible.

"[S]ince Congress enacted federal unemployment benefits, time spent looking for a job has tripled among the long-term unemployed who are out of work as a result of job loss," the report says (PDF).

Citing data from the Labor Department's American Time Use Survey, Democrats on the Joint Economic Committee estimate that from 2008 to 2010, the amount of time long-term jobless eligible for benefits spend looking for work increased 203 percent compared with previous years. For workers who are likely ineligible for benefits because their unemployment was not caused by job loss, the amount of time spent search for work increased 120 percent.

If members of Congress can't cut a deal on extended jobless benefits, as many as 1.8 million long-term jobless will prematurely lose their benefits in January, according to worker advocacy group the National Employment Law project. Currently, 3.5 million unemployed are receiving federal unemployment compensation, which goes to workers who use up 26 weeks of state benefits.

Federal lawmakers routinely give the unemployed extra weeks of compensations during recessions. The federal programs have a negligible impact on state expenditures, but a big impact on state economies. In their letter, Democratic governors noted that Congress usually keeps the money flowing until the unemployment rate is well on its way down. "Congress has never failed to act on extending federal unemployment insurance benefits when the unemployment rate has exceeded 7.2 percent, and we must not fail our citizens now," the governors wrote.

Comments

[jeffbwillis]

09:21 PM on 12/17/2011

It would be a shame and a stain on this congress if they turned a blind eye on these workers. Contrary to the opinion of a misguided, uninformed few, these are older workers who have been downsized. They have always worked and are vigorously trying to find employment. Companies simply aren't hiring. Why? Good question! That's what the 2012 election will be about. Meanwhile, it's no time to play politics. This is simply "great bang for the buck." Not extending will hurt states' economies. It's just the right thing to do.

[economyparty]

05:59 PM on 12/17/2011

mw21 .491 Fans
Become a fan Unfan .07:19 PM on 12/15/2011 Nobody should have multiple millions and multiple homes and lavish lifestyles while others are starving. Nobody!

Now you can call me names
Response:

And no one should have free housing (section 8) while others have to pay for it.
And no one should get free money (welfare) while others have to pay for it.
And no one should have free food (food stamps)whi­le others have to pay for it.
And on one should get a free paycheck (unemploym­ent) while others have to work for it.
And on one should have to pay almost have of their paycheck to the government­(taxes)whi­le 60% of people pay no taxes at all.
Now you cry and wine all you want. Or you can get an education and better yourself withou always expecting a handout.

[anebt2]

01:21 PM on 12/16/2011

"The President’­s Fiscal Year 2012 budget proposal, released on February 14, includes several provisions affecting UI. The major elements would:"

"Increase the FUTA taxable wage base to $15,000 in 2014, while reducing the net FUTA tax rate to .38%"

Right now it's the first $7000 federal and state. The credit is halved. That means no new employees; keep the ones you have and give them extra hours. Nothing good here.

"States would be required to raise their taxable wage bases to at least $15,000 by 2014"

That's the end of small business new hiring. Keep old employees. Don't hire new ones as that will trigger a new set of payments.

"So remind me who voted down the Presidents budget? Sure as hell wasn't the Dems."

This budget will make sure no small business hires new employees. Haven't you been reading the news? Employees are given more work or longer hours or worked to death for the same salary. New hires are going to be very costly as they trigger a new set of payments for the base rate.

[idiot here]

10:22 PM on 12/15/2011

Free money gives no incentive to work. Why not give the money to a small business employer that you would just hand out to the individual. The stipulation would be that for the employer to get the money he has to hire the unemployed worker and then pay them at least the money that was given to them by the government plus 10% minimum. This would put people back to work making things for small businesses that either cannot afford the extra work or are worried about hiring. This would also put the individual back to work making more money than they could with just their hand out and possibly give them retraining that could be very beneficial. Who knows if the small business was successful then they just might end up hiring the individual. Of course the details would have to be worked out of who gets the money and how much for how long but this would definately kick start something...IMO

[Davwbaird]

10:01 PM on 12/15/2011

Where are republican governors ? Sitting in offices plotting how to give tax breaks to the rich and beating up on the poor? Or perhaps making sure the vote is suppressed? Or both.

[anebt2]

09:24 PM on 12/15/2011

The level of ignorance shows through liberals.

1. All employers pay a percentage, avg about 6%, of UC taxes for the first $7000 of every employee's annual incomes. Some states have higher bases ($8000 or more). If employees are laid off, the rate goes up to a state maximum. There are also federal rates to pay.
.
2. After the taxes are paid for every employee who has been paid the base, there is no more payment made for that employee.

3. There is no incentive to hire new workers as they also will require a new set of UC taxes for *their* base of $7000 or more. Hence it's easier to keep employees you have and give them more hours. Read up on it.

4. All employers, whether Microsofts or mom-and-pops, pay the same UC tax for the base rate.

5. Most business owners who pay UC taxes aren't even close to the 1%.

6. If the states have borrowed money to cover unemployment "benefits," we are sent a bill the next year to pay for the interest on the loan. Florida hasn't even touched the principal.

7. The year's bills given to employers due to these massive extensions are never known. They are separate from the normal pay-go of UC taxes.

And all that makes for an uncertainty small business cannot afford.

[tacevad]

09:07 PM on 12/15/2011

to me the common sense approach to the unemployment problem should be two fold
The length of benefits available should be tied directly to the unemployment rate automatically increasing and decreasing at set levels.
To get lawmakers attention more focused their own pay should also be tied to the unemployment rate the more unemployed the less lawmakers get paid.
again as I stated above it is only common sense to me...but I doubt either solution will ever come about.

[mw21]

07:19 PM on 12/15/2011

Nobody should have multiple millions and multiple homes and lavish lifestyles while others are starving. Nobody!

Now you can call me names.

[BBackSoon]

08:58 PM on 12/15/2011

I got a name for you.

Fellow Socialist. (Meaning you believe in society.)

[mw21]

09:38 PM on 12/15/2011

I'll own up to that one too.

[bigmaddy]

09:24 PM on 12/15/2011

You bet I'll call you names! You, Good Person you! there now I told you!

[mw21]

09:37 PM on 12/15/2011

You will be in the minority but thanks.

[mw21]

07:11 PM on 12/15/2011

And the Republicans in the House replied in unison, "Bah Humbug!"

[Davwbaird]

10:06 PM on 12/15/2011

Evil is as it does. Jonh McCain is not an hot an honorable.man.

[Deborah]

06:13 PM on 12/15/2011

I believe it is time to slash the salaries and benefits of all of our elected officials. This is a movement I will get behind. We need to make then live in the same world we do.

[anebt2]

06:02 PM on 12/15/2011

I have already contacted my Congressman, who happens to be a Tea Partier. I told him I can no longer continue to keep payroll as my unemployment insurance rates have risen in order for me to pay for endless unemployment "benefit" extensions..

I just got the letter today from the Florida Department of Revenue. As a small business owner, I also cannot risk having employees file for unemployment and have my rates raised. Payroll is now so uncertain that in 2012 we will just used temp labor.

[leedan]

08:24 PM on 12/15/2011

Bs

[anebt2]

09:12 PM on 12/15/2011

No, it's not. We have to pay higher rates. Go to the web and read Florida UC rates to rise, etc. Also read about why new employees aren't hired if current employees can work more. Get a clue. Most liberals don't own businesses and it shows.

[tacevad]

09:08 PM on 12/15/2011

Sounds like you are into the Ebeneezer solution to labor

[Mwesley]

04:16 PM on 12/15/2011

I said this the other day on this site but again, there are more than 5 people applying for a job. Last week when I was on Careerbuilder I applied for a receptionist at a hospital there were more than 155 applicants. Careerbuilder shows how many people applied, what their level of education and experience is. Another application showed 700 people applied. 700 !!! It is stunning.

[laser focused]

04:59 PM on 12/15/2011

Careerbuilder? the employer meat market. apply for something else then, there are lot of positions that get no applicants and stay open for months, years.

[BBackSoon]

09:00 PM on 12/15/2011

You mean those Purple Squirrel positions they post so they can hire H1B Contractors?

[CaptainRenault]

05:00 PM on 12/15/2011

This is more often the case than not for any job worth having.

^ ^

[laser focused]

05:19 PM on 12/15/2011

at some point they're going to have to do something. the wheels on the gravytrain are coming off.

[anebt2]

03:52 PM on 12/15/2011

As owner of a small s-corporation, I pay the same amount per employee per year as any corporation with thousands of employees--5.8% of the first $7000 of employee pay. I have already received news that my unemployment compensation will be tripled in 2012.

The problem is that most people here think of a "corporation" like being a Microsoft. No, most corporations don't even have 50 people on the payroll.

What will I do next year? Simple. I have already laid off all employees and will only use uninsured, independent contractors. I cannot afford to pay any more taxes as Workers Comp and payroll taxes are also too high.

Sorry, Dems, but you are the cause of this misery. You just don't get it, do you? Most corporations and employers are not the 1%.

[stormkrow]

04:13 PM on 12/15/2011

Prove it.
Pics or it didn't happen.

[anebt2]

05:55 PM on 12/15/2011

Go read about workers comp on wiki or something. Every employer, including moms-and-pops, pay the same rate on the first $7000 of employee income. Microsoft pays the same for the first $7000.

[dwalpr]

04:24 PM on 12/15/2011

How will your unemployment compensation be tripled in 2012 if you laid off all your employees? And why are the Dems the cause of your misery, they have not increased any of your taxes or changed Workers Comp rules. If you want to blame a party that did NOT cause the recession that brought on hard times, you need to explain yourself better or we will all know why you are having a hard time running a corporation!

[anebt2]

05:54 PM on 12/15/2011

If we don't have employees, my spouse and I are still employees of a corporation, and have to pay UC taxes just the same. Amazing how liberals here haven't got a clue about business.

[LI2USsomemore]

03:15 PM on 12/15/2011

This nation needs to do a means test for those applying for socialist benefits that vote Republican. Instant disqualification. And, no, I don't regret the sentiment. You vote for capitalism, you can live with it.

[bigmaddy]

09:29 PM on 12/15/2011

Fan n fav

[LI2USsomemore]

03:12 PM on 12/15/2011

Roughly one job per five unemployed, and very few of the unemployed are qualified for many of those openings, which makes the gap even greater.

Every single person who's applied for a job at the lower levels knows that they're competing with hundreds of others in the same boat. The employers wring their hands in glee.

[laser focused]

05:03 PM on 12/15/2011

well then its not a shortage of jobs...its there are too many people.

[LI2USsomemore]

05:33 PM on 12/15/2011

That's another discussion altogether.