Without Extension, Millions Will Be Cut Off Jobless Benefits by End of July 4th Recess

At the close of business on July 1, the Senate failed, again, to renew the federal jobless benefits that expired at the beginning of June, which will leave more than one million unemployed workers and their families cut-off from the vital jobless safety net by the end of the week.

As Congress packs up to leave town for the July 4th holiday, the misery it leaves in its wake will multiply rapidly: the Department of Labor estimates that 1.72 million will be cut-off benefits by the end of this week, 2.14 million by the end of the recess, and 3.23 million by the end of July if extensions are not approved.

"Congress has failed the unemployed again, and in the process has shown an inexcusable disdain for the real suffering of millions of families relying on the jobless safety net, and indifference to the real harm this inaction will cause the economy. For the Senate to go on recess - again - without responding to the benefit cut-off crisis is irresponsible and immoral," said Christine Owens, Executive Director of the National Employment Law Project.

Following the expiration of federal unemployment insurance extensions at the end of May, individuals who exhausted the 26 weeks of regular state benefits or completed any tier of the federal Emergency Unemployment Compensation (EUC) program became unable to collect further federal benefits. Additionally, thousands collecting unemployment checks under the 13-20 week Extended Benefits program are being cut off in the middle of their claims, unable to finish out their current tier of benefits.

The National Employment Law Project and Center for American Progress released a report this week documenting the impact of federal unemployment provisions adopted in the Recovery Act - as well as the harm to millions of jobless workers and the economy that has resulted from Congress' failure to reauthorize these provisions.

Although the standalone unemployment insurance extension has majority support in the Senate, including that of two Republicans, Senators Collins and Snowe, who crossed the aisle to vote for last night's measure, sixty votes are required to end debate and move the measure to a final vote.

Democratic Senator Nelson of Nebraska and all other Republicans who voted opposed the measure, causing it to fail by a single vote. The House is still considering HR5618 today, a similar standalone measure to extend jobless benefits through the end of November, but with the recess approaching and the Senate's failed vote last night, legislation is unlikely to reach the President before the July 4th weekend.

"We commend all those Senators, including Senators Snowe and Collins, who stood up for unemployed workers at this moment of real crisis. We urge all Senators to put aside partisanship, and join in this demonstration of compassion, humanity and sound judgment about what the economy and America's workers and their families need now," said Owens.

Congress returns from recess on July 12th, which means nearly two weeks will pass, at a minimum, before it reconsiders extension legislation.

"It is a tragedy that Congress has left millions of Americans to spend the 4th of July holiday in despair because their elected leaders couldn't pass a single bill - over the course of several months - to help people who are unemployed through no fault of their own and are falling farther and farther behind in the worst downturn since the Great Depression," said Owens.

As of May 2010, 15 million workers were unemployed, and during the week ending May 29, there were over 9.4 million collecting some form of unemployment insurance, including 5.2 million recipients of the federal extensions. With one job opening for every five people seeking work, the average duration of unemployment is 34.4 weeks (8 months).

In a national poll of registered voters conducted by Hart Research Associates last month, 74% of respondents agreed that "With unemployment close to ten percent and millions still out of work, it is too early to start cutting back benefits and health coverage for workers who lost their jobs," while only 21% agreed that "With the federal deficit over one trillion dollars, it is time for the government to start reducing spending on health care subsidies and unemployment benefits for the unemployed."

Today’s Unemployment Crisis by the Numbers [PDF]
NELP Survey [PDF]