As the worst recession since the Great Depression continues to take its toll, some 15 million unemployed Americans are competing for 3 million available jobs. The jobless are running out of unemployment insurance benefits at a rate of 50,000 a week; nearly 2 million will have no unemployment income by the end of the year -- unless the federal government moves to extend those benefits.
Congress should act quickly to provide additional payments to the unemployed.
Last month, the House passed a plan that would add 14 weeks of benefits -- but only in states with unemployment rates of 8.5 percent or higher. That unfairly excludes Minnesotans for living in a state with only 7.3 percent of its citizens out of work.
The preferable proposal, introduced by Senate Majority Leader Harry Reid, D-Nev., and other Democrats, would include struggling Minnesotans. Also supported by Minnesota Sens. Amy Klobuchar and Al Franken, the plan boosts unemployment payments by 14 weeks in all states and adds another six weeks for states with higher jobless rates.
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During the past 18 months, Congress has extended the payments three times -- most recently in February. According to the Center on Budget and Policy Priorities, that last extension alone kept 800,000 people out of poverty.
Clearly, with national unemployment nearing 10 percent, that type of help is still needed. What's more, channeling survival funds to the out-of-work puts dollars directly into the still anemic economy.
To finance unemployment insurance, typically employers pay into a state insurance fund and laid-off workers draw benefits for up to 26 weeks.
But during recessions, Congress has often paid for extended coverage. Last year, as the recession deepened, the federal government provided an extra 33 weeks of benefits. Stimulus funds covered an additional 20 weeks in states where unemployment surpassed 8 percent. In Minnesota, the unemployed can draw up to 79 weeks of assistance with a maximum benefit of $585 per week.