Soon to be 9-10 Million Unemployed with no Benefits or Job

Unemployment benefits have been cut off for 1.35 million long-term unemployed, due to the willful malfeasance of Obama and Senate Leader Harry Reid around the budget resolution negotiations, when these benefits were given no priority by Democratic leadership.

Total job openings were in the 3.7-3.9 million range over the past several months, while about 11.5 million unemployed looked for those jobs, spiking the claim that cutting of extended benefits will make the unemployed “look harder” for work.

With the elimination of Federally-funded extended benefits this past weekend, about 80% of those 11.5 million officially unemployed are now without any benefits, at the same time food stamps have been and are being further reduced. Only about 2.7 million of those unemployed will continue receiving (state) benefits, which last 26 weeks at most. As the Ways and Means Committee minority staff reported Dec. 30, this means that in the first six months of 2014, an additional 1.9 million Americans will lose their coverage as they exhaust their state benefits, at a rate of about 72,000 every week. The number insured will fall below 2 million out of more than 11 million officially unemployed.

An unnoticed effect is that if even one out of five of those who’ve lost the benefits, either take a minimum-wage job or drop out of the labor force, the official unemployment rate will show another phony “drop” to 6.7-6.8%.

Reid is now saying there will be a cloture vote Monday Jan. 6 on a 3-month extension (sponsored by Sens. Jack Reed [D-RI] and Dean Heller [R-NV]); this may die in the House.

This entry was posted in Austerity & Bank Bailouts, Nerobama, Obamacide and tagged , , , , , . Bookmark the permalink.

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