Saturday, December 21, 2013

24 Million Rec'd Extended Jobless Benefits, but No More

December 2013: In their case to extend jobless benefits next year, the White House just reported that almost 24 million long-term unemployed Americans were out of work at least 6 months and received extended unemployment benefits over the past 6 years --- but the Bureau of Labor Statistics currently reports that a little more than 4 million are long-term unemployed. During that same time, less than 7 million Americans retired or went on disability, while only a little more than 8 million jobs were created. So what happened to the other 9 million long-term unemployed? What was the death-rate during this period of time?

Economic despair has been spreading across America
"Hi, I'm from Tent City U.S.A."

The emergency unemployment compensation program was enacted in 2008 and extended unemployment up to 73 weeks after 26 weeks of regular State jobless benefits were exhausted for a total of 99 weeks --- hence the moniker, the 99ers.

UI - Regular State unemployment benefits up to 26 weeks (20 in some States)
EUC - Emergency federal benefits up to 53 weeks (when State benefits are exhausted)
EB - Extended State benefits up to 20 weeks (when federal benefits are exhausted)

From the Economic Populist:

"Among the official unemployed there are over four million who have been so 27 weeks or longer. If one counts the disenfranchised [the uncounted "discouraged workers"], the estimate is much higher. Worse than that, due to employer discrimination, only about 10% of the official long-term unemployed find a job per month."

* NOTE: Actually, according a new paper by Rand Ghayad from the research department of the Federal Reserve Bank of Boston, now only about 10.25% of those who still have jobs can get a job interview. So for the unemployed (especially for the long-term unemployed), we can imagine much worse odds for someone actually being hired for a job.

Now imagine this: One normally needs to be out of work for 6 months to exhaust their 26 weeks of regular State benefits before applying for federal extended unemployment benefits. According to the new White House paper (from January 2008 through September 2013) 23.9 million long-term unemployed Americans received emergency unemployment compensation. At one time, some up to 99 weeks in the highest unemployed States (but it's less now, as indicated in the map below.)

Was 99 weeks, then 73 weeks, now only 26 weeks.

Remember: We had 23.9 million long-term unemployed Americans.

Now keep this in mind, over that same period of time:

Now reconcile these numbers with 23.9 million long-term unemployed Americans who were out of work at least 6 months and received extended unemployment benefits (and only 1/3 qualified), when the Bureau of Labor Statistics currently reports that only 4.1 million are long-term unemployed.

Where did everyone else go? They couldn't have all retired, went on disability or found jobs (or died). Did they all leave the country? Or are they all sitting on their ass like Homer Simpson and refusing to find a job?

How many Americans (between the ages 18 to 62 and who would normally be in the labor force) are there REALLY unemployed, but who would also like a job? 20, 30, 40, or 50 million? It's a lot more than the 15 million jobless during the Great Depression --- so it's a hellava lot more that the 10.9 million that the government currently reports.

But after Christmas, there will no longer be any more unemployment benefits for the long-term unemployed. Starting next year in 2014, if you lose your job, after 26 weeks you are SOL. Or, as the Republicans like to say, "Ho, ho, ho! It's out into the street you go!"

According to a HuffPo poll, 56 percent of Republicans believe that people out of work could find a job if they wanted to. This tells me that, among Republicans, there is a 44% unemployment rate.

My Related Posts:

Discouraged Workers, not Disabled, Shrinking the Labor Force

Long-Term Unemployed Now Desperate

Millions are Middle-Aged and Unemployed -- and Screwed

For High School Grads, the Labor Market is Brutal

Falsely Blaming Baby Boomers for Smaller Labor Force

Finally! A GOP Jobs Plan will Soon be Launched!

Jobs Report: Lipstick on an Economic Pig

3.8 million Unemployed keep another 9.7 million Jobless

High School Drop-Out Debunks Economics Professor

Fed Expects Further Decline in Labor Force


  1. I forgot to add --- even assuming the most unlikely scenario --- and that 9 million long-term unemployed Americans lost their jobs early in 2008, collected up to 99 weeks of extended benefits, and were laid off again, then worked long enough to re-qualify for an additional 73 weeks of extended benefits --- it still wouldn't account for 15 million new people that we'd expect to enter into the labor force after they graduated from high school.


    George W.Bush signed the first federal extended UI program in July 2008.

    On June 30, 2008 Obama signed the Supplemental Appropriations Act of 2008.

    The authorization for the additional $25 weekly benefit expired on May 29, 2010.

    The American Taxpayer Relief Act of 2012 authorized benefits in all states until December 28, 2013.

    Say good-bye to the last of the 99ers.


  3. TO DATE: Nevada and Rhode Island had the highest unemployment rates (U-3) among the states in November at 9.0 percent each. North Dakota continued to have the lowest jobless rate at 2.6 percent (fracking jobs?)


  4. Countering earlier arguments of why the LFPR [Labor Force Participation Rate] has been declining (e.g. an aging population, retirees or those going on Social Security disability), researchers found:

    "The decline in LFPR among prime-age workers [ages 25–54] is a major contributor to the overall decline in LFPR. Prime-age workers fell from 81.6 to 81.0 with similar declines for both men and women. Given that prime-age workers make up more than half of the population, it is not surprising that the drop in the LFPR for these age groups accounts for a substantial fraction of the overall decline."

  5. Unemployed & Poor in the Richest Country on Earth


    (Link below) Exactly 2 years and 2 months ago the White House released a report saying:

    "As of October 2011, 17.9 million job seekers had received EUC/EB benefits."

    As of December 2013 we had 23.9 million long-term unemployed Americans who received EUC/EB benefits --- for a net gain of 6 million over the last 2 years and 2 months.