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Mounting Jobless Claims Force States To Borrow Funds
CNBC ^ | 6/26/09

Posted on 06/27/2009 10:00:15 AM PDT by FromLori

The government checks keeping Candy Czernicki afloat are fast running out. The reason? U.S. states obligated to pay benefits to the swelling ranks of jobless Americans are piling debt onto strained budgets.

CNBC.com

Fifteen states have depleted their unemployment insurance funds so far, forcing them to borrow from the U.S. Treasury.

A record 30 of the country's 50 states are expected to have to borrow up to $17 billion by next year, said Rick McHugh of the National Employment Law Project, a nonpartisan advocacy group.

"We are setting the stage for big pressures for states to restrict eligibility and benefit levels," McHugh said. "Those type of restrictive actions undercut the (Depression-era program's) economic and social stability purposes."

The state-run unemployment insurance programs are normally financed with payroll taxes paid by employers on each worker. But the funds' tax revenues are falling at the same time as benefit demands are rising.

Nine million Americans are receiving jobless benefits, triple the number who got checks at the beginning of the year. Experts predict the number of recipients will peak sometime this summer as long-term unemployed run out of benefits, which were recently extended and last for 59 weeks in most cases.

"I believe I have two months of benefits left," said Czernicki, 44, who was laid off from her Eau Claire, Wisconsin, newspaper editing job last year.

Unforeseen Impact

"I am living with my sister because, after eight months of unemployment, I couldn't be living on my own any more," she said. "I don't think my sister will throw me out. I know at least that I am not going to be homeless."

Jonathan Cohen was laid off by a New Jersey nonprofit a few months ago and is growing discouraged. Competition for available jobs is fierce and he fears his

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Government
KEYWORDS: bho44; bhoeconomy; economy; jobs; layoffs; second100days

1 posted on 06/27/2009 10:00:16 AM PDT by FromLori
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To: FromLori
Fifteen states have depleted their unemployment insurance funds so far, forcing them to borrow from the U.S. Beijing Treasury.

Lets be honest and realistic here CNBC.

2 posted on 06/27/2009 10:09:37 AM PDT by EGPWS (Trust in God, question everyone else)
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To: FromLori

“We are setting the stage for big pressures for states to restrict eligibility and benefit levels,” McHugh said. “Those type of restrictive actions undercut the (Depression-era program’s) economic and social stability purposes.”

So when the jobless have used the last of their unemployment benefits and there are still no jobs do they turn to welfare? Then when the states run out of welfare money do they sleep in the streets, turn to theft, or starve? Do they wait for the never-to-be-realized green jobs to magically appear? Or, do they take to the streets in protest against an out of control federal government?


3 posted on 06/27/2009 10:20:06 AM PDT by ChoobacKY
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To: FromLori

I’m one of those 9 million and it is not easy to get a new job. I am desperately looking for one.


4 posted on 06/27/2009 10:20:08 AM PDT by Vindibudd
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To: Vindibudd

Very sorry to hear that what area are you in and what do you do normally?


5 posted on 06/27/2009 10:21:38 AM PDT by FromLori (FromLori)
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To: Vindibudd
I’m one of those 9 million and it is not easy to get a new job. I am desperately looking for one.

Move to North Dakota.

6 posted on 06/27/2009 10:23:54 AM PDT by MinorityRepublican
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To: MinorityRepublican

You might find this map interesting:

Job Loss/Gain 2007-2009 by county-

http://www.slate.com/id/2216238/

It shows where the damage is worst. Mostly East, NE, Great Lakes, Fla, & S. Cal.


7 posted on 06/27/2009 10:31:33 AM PDT by Texas Fossil (The last time I looked, this is still Texas where I live.)
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To: FromLori

I live in Orlando and I normally have done call center or graphic design work, but I just recently went back to school for a BA poli sci and finished last year, and there are hundreds of resumes for every basic job out there. I am about to apply to an $8 an hour telemarketing job. That’s not gonna cut it.


8 posted on 06/27/2009 10:40:17 AM PDT by Vindibudd
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To: ChoobacKY

Or, do they take to the streets in protest against an out of control federal government?


More than likely they will take to the streets demanding that Obama bail them out. Sorry folks, the $$ already went down the AIG rathole.


9 posted on 06/27/2009 11:45:41 AM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: FromLori

“I’m hoping that as the (federal) stimulus money gets through the pipelines you’ll start to see more openings.”

Heh, is he in for a rude awakening.


10 posted on 06/27/2009 11:46:30 AM PDT by RWB Patriot ("Need has never produced anything. It has only been an excuse to steal from those with ablity.")
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To: Vindibudd

My last day is on Tuesday.


11 posted on 06/27/2009 12:51:17 PM PDT by Red in Blue PA (If guns cause crime, then all of mine are defective!)
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