Print this Page The Jobs Search
Federal Unemployment Benefits, Supersized
The Current “Temporary” Federal Benefits Program Has Already Served up 881 Million Weeks of Checks (and Counting)
But that’s pretty much where the similarities end.
The current EUC program already has served up about 10 times as many weeks of Federal extended benefits as the most recent program that operated in the wake of the 2001 recession and terror attacks, and nearly six times as many weeks as the program that ran from 1991 through 1994. That’s just through July 2013, with tens of millions more weeks of checks to be added before the EUC program’s expiration in December 2013. EUC’s $252 billion in spending through July also dwarfs any prior program – already spending $200 billion more than any recent program, in inflation-adjusted dollars.
And despite Democrat claims that such spending on UI benefits is the “best stimulus,” all this record-setting benefit spending has bought is the slowest recovery on record. Perhaps not surprisingly, a new study identifies the EUC program as the cause of the painfully slow labor market recovery – as employers have withheld new job offers until after the Federal extended benefits program ends. Another study reinforces that such programs have been behind recent jobless recoveries.
This program -- which has already added too much to the deficit, and helped keep unemployment too high for too long – should be allowed to finally come to an end.
Comparing the Last Four Federal Temporary Unemployment Benefit Programs
*Through July 2013
Sources: Department of Labor Emergency Unemployment Compensation 2008 (EUC08) and Federal-State Extended Benefit (EB) Summary data for State Programs and ET Financial Data Handbook 394