Tens of billions of dollars in debt. Cuts to jobless aid that have been called “historic and disturbing.” Unemployment insurance trust funds that are still clawing their way back to solvency.
This is the Great Recession’s legacy for the nation’s unemployment safety net. The sustained downturn and spike in joblessness stressed state programs to an extent not seen in decades, requiring emergency federal aid. Now, unemployment nationwide has fallen to 5.5 percent and the amount of unemployment benefits paid in the states has dropped to pre-recession norms in many cases. Federal jobless aid to extend benefits expired last year.
Yet many state unemployment insurance trust funds still face a deficit. Those that are in the black often have balances below pre-recession peaks. And many states are paying less in benefits. The result is a safety net significantly weaker than it was before the recession.
Six years after the end of the recession, many state officials and labor analysts are concerned about what will happen to jobless benefits once another economic downturn arrives.
“When it comes, the (unemployment) program is going to be weaker and less effective than it was in the last recession,” said Wayne Vroman, a senior fellow in the Center on Labor, Human Services and Population at the Urban Institute. “The consequences are going to be there in the next recession, and it will be obvious.”
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7 comments:
"Six years after the end of the recession, many state officials and labor analysts are concerned about what will happen to jobless benefits once another economic downturn arrives."
That's the biggest lie I've heard in a long time! Does this author want to tell us that we've just had six years of "Prosperity"?
Hilarious. Unemployment is out of funds because everybody was a d still is unemployed. The end of the funds lowers the magic "unemployment rate" because that stupid number reflects the number of people receiving unemployment benefits, not the number of unemployed people. Businesses are closing daily around here ans nobody new is moving in! The busiest workers are the sign painters painting "Available, for sale or lease" signs!
What "Next Recession" are you imagining? The depression we're in now will not lead to a "Recession", you dingbat!
The economy hasn't gotten any better since the great recession started in 2008. States are going broke because there is no longer much of any tax base out there to pay into the unemployment trust fund.
It will be interesting to see how many more public sector workers will be asked to leave or take early retirement? Has the Board of Education been asked to do the same? Can't see how we will will have the tax base to pay for all those high teacher and administrator salaries and perks!
You know, it's amazing how many 'unemployed' people suddenly find a job once their unemployment is cut off.
They fuss and pout for a while, but they FIND A JOB.
One of the biggest problems is government bloat.
If you believe this is "prosperity", ..... You believe everything the govt tells you.
The double dippers are draining the budget.
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