August's disappointing jobs report issued on September 3, showing that 54,000 jobs were lost in August, is a stark reminder that job creation and support to the unemployed need to remain at the top of Congress’ priority list, the National Employment Law Project said in a statement released on September 3.

Even with modest private sector job growth, unemployment actually increased to 9.6 percent in August, with a total of 14.9 million experiencing joblessness as the country continues down a road of sluggish – and largely jobless – economic recovery. NELP urged Congress today to continue and expand on programs like the TANF Emergency Fund, which is set to expire this month, to boost job creation.

“Today’s employment report closes a summer of uncertainty that has demonstrated how far away we are from an economic recovery that creates jobs and brings unemployment down. With extraordinarily high long-term unemployment continuing – affecting over 6.2 million people - today’s jobless workers cannot wait any longer for work and income support. We need stronger policies that will help put workers back on payrolls, stimulate the economy with consumer spending and help us move out of this lethargic period of stagnant growth,” said Christine Owens, Executive Director of the National Employment Law Project.

“At a minimum, Congress needs to continue its support for extended unemployment benefits and other sources of support for the unemployed. Moreover, with private payrolls still so anemic, there’s an overwhelming case for direct action by Congress to stimulate hiring and create jobs, with the government as an employer of last resort,” said Owens.

“One of the successful features of the stimulus program, for example, is now on the line. The employment subsidies provided by the TANF Emergency Fund expire on September 30th. Congress should renew the funds to preserve the critical employment opportunities the program provides,” continued Owens.

The Temporary Assistance for Needy Families (TANF) Emergency Fund was created through the American Reinvestment and Recovery Act of 2009 to help states expand services during the downturn. It has also been used by states to directly subsidize employment: over $1 billion from the Emergency Fund has helped create 250,000 year-round adult and summer youth employment opportunities in 35 states, the District of Columbia, and the Virgin Islands to date. While the House has already voted to extend the fund for another year (HR 5893), the Senate has failed to do so.

“The Emergency Fund has tremendously helped states create new employment opportunities. By  reauthorizing it, even more states will have the opportunity to take advantage of millions in jobs subsidies. If Congress fails to reauthorize the Fund, those subsidies will vanish along with the job opportunities they provide. Continuing the TANF Emergency Fund is a concrete step Congress can take to create jobs, along with passage of larger-scale programs like the Local Jobs for America Act,” said Owens.

Illinois is one such state at risk of losing jobs if the TANF funds expire: most of the 27,000 participants in subsidized jobs will become unemployed if the subsidies are not renewed past September 30th. In fact, over half the states with year-round employment programs will either end those programs or drastically reduce their size without the TANF Emergency Fund.

The Center on Budget and Policy Priorities yesterday issued an analysis documenting the state-by-state impact that would result from losing the jobs subsidies from the TANF Emergency Fund.

“Now is not the time to be adding to the ranks of unemployed, or cutting back on much-needed jobs,” oncluded Owens. “It’s imperative that Congress reauthorize the Emergency Fund before it expires at the end f the month.”