Pennsylvania Among States Hardest Hit by Cutoffs

A new analysis, entitled Out in the Cold for the Holidays, released by the National Employment Law Project reveals that 1.2 million workers will be cut off of federal jobless benefits by year's end if Congress fails to renew the federal emergency extensions that expire on November 30th.

Any lapse or cuts would strike a major blow to workers and businesses during the height of the holiday and retail season, and further federal cut-offs will quickly mount to millions more early next year-if Congress fails to continue the current programs.

"Over one million workers will be cut off unemployment insurance in just one month, starting November 30th, unless Congress continues the federal emergency extensions for jobless Americans. These are people who have been laid off through no fault of their own and are desperately looking for jobs, but would be snapped from the lifeline of jobless benefits just as the holiday season kicks into high gear. Congress will have to act fast when it reconvenes to avoid a catastrophe. The clock is ticking," said Christine Owens, executive director of the National Employment Law Project.

California, Florida, Illinois, Pennsylvania and New York top the list of states that would face the most premature cut-offs, the report's state-by-state breakdown of potential cut-offs shows.

Of the 1.2 million workers at risk of losing federal benefits, 387,000 are workers who were recently laid-off and are now receiving the six months (26 weeks) of regular state benefits. After exhausting state benefits, these workers would be left to fend for themselves in a job market with just one job opening for every five unemployed workers and an unemployment rate that has exceeded nine percent for 17 months in a row-with no federal unemployment assistance whatsoever.

In addition to the providing state-by-state estimates of the numbers of workers prematurely denied benefits if Congress fails to act by November 30th, the new analysis includes the following key findings:

• Since the unemployment insurance program was created in response to the Great Depression, Congress has never cut federally-funded jobless benefits when unemployment was this high for this long (at over nine percent for 17 consecutive months).
   
• Businesses and the struggling economy-especially the critical retail sector-will take a major blow if Congress fails to continue the federal jobless benefits during the holiday shopping season.
   
• In 2009 alone, the increase in the number of people in poverty would have doubled were it not for unemployment insurance benefits.
   
• With the average unemployment extension check of $290 a week replacing only half of the average family's expenditures on transportation, food, and housing, jobless workers have a major incentive to look for work, notwithstanding the modest assistance their benefits checks provide.
   
• The 51-day lapse of the federal extension program this summer caused substantial hardship for many of the more than 2.5 million unemployed workers cut off from benefits, underscoring the urgency of renewing the current program for another year until there is strong jobs growth.

The looming expiration of the current extensions comes with an extremely narrow window in which Congress can reauthorize them. After the mid-term elections, lawmakers are scheduled to return on November 15th for just four to six days of votes before taking off again for the Thanksgiving holiday.

"Cutting unemployed job seekers off the extended unemployment benefits they need and have counted on receiving is hard any time, but doing so around Thanksgiving and the ensuing holidays is especially harsh-and counterproductive. Cutting off unemployment benefits at the end of November will hit families and businesses hard during the peak holiday season, throwing yet another damper on the recovery. The nation simply cannot afford another round of prolonged and destructive Congressional gridlock that imposes more delays and undermines the economy," said Owens.

The NELP report calls for a continuation of the federal program of jobless benefits through November 2011.

"We hope this report reminds lawmakers and the public of the severity of the jobs crisis, and makes clear why we must continue the federally-funded jobless benefits until the job market shows strong signs of recovery," said Owens.

Full Report: Out in the Cold for the Holidays