Jobs Report: Unemployment Drops to 7.8%; As Economy Improves, Maintaining Income Support & Reemployment Assistance for Long-term Unemployed is Critical

National Employment Law ProjectThe economy added 114,000 jobs in September, and the unemployment rate dropped to 7.8 percent, according to the monthly jobs report released today by the Bureau of Labor Statistics.

“Today’s report is good news for the economy and good news for America’s workers,” said Christine Owens, executive director of the National Employment Law Project. “Major indicators improved, but we cannot afford to ignore the long-term unemployed - the 40 percent of the unemployed who’ve been out of work six months or longer. They’re about to reach the edge of a real and enormous financial cliff at the end of December, when the federal extended unemployment program is slated to expire. Failure of Congress to renew the program will immediately pull the rug out from under two million unemployed Americans, an unconscionable result we cannot and should not tolerate. Unless Congress acts before the year ends to reauthorize the unemployment program, those still suffering the most in this economy will not have the support they need to get back on their feet and get back to work. It’s good economics and the right thing to do.”

An abrupt expiration of the federal Emergency Unemployment Compensation program would leave the unemployed with no further jobless aid beyond the 26 weeks provided by most states, even though the average unemployed worker is out of work for almost 40 weeks, and there are more than three unemployed workers for every job opening.

While accelerating the creation of good jobs and preserving the unemployment insurance safety net are paramount priorities, a new report from NELP focuses on the key role that high-quality public reemployment services also could play in helping the unemployed get back to work. Spending more on these reemployment services more than pays for itself, as there are significant cost savings from paying out less in unemployment insurance, and increased revenues from workers returning to jobs more quickly.

The report, Getting Real: Time to Re-Invest in the Public Reemployment Service, calls for rebuilding and reinvesting in a public labor exchange function that achieves the following:

  • Provides unemployed workers with expert guidance on conducting an effective job search;
  • Efficiently supplies employers with referrals of workers who have the skills and experience to succeed;
  • Prioritizes services to workers who run the highest risk of becoming long-term unemployed; and
  • Helps workers who need retraining to make informed choices to maximize their prospects for finding good jobs.

“If there’s real consensus among our leaders that helping unemployed workers get back to work is a top national priority, then our nation’s policymakers must commit the resources necessary to make that a reality,” said Owens. “In the long run, we must have more good, sustainable jobs. But in the meantime, what we need now are reinvigorated public reemployment services. Modest investment in these programs will pay big dividends in matching workers who need jobs with employers who need workers, cutting unemployment costs, and generating new tax dollars in an economy operating more efficiently.”


The National Employment Law Project is a non-partisan, not-for-profit organization that conducts research, education and advocacy on issues affecting low-wage and unemployed workers. For more about NELP, visit www.nelp.org

 

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