Adding to Recession’s Pain, Thousands to Lose Jobless Benefits This Week

[DeepModem Mom]

Source: New York Times

Just as the recession is throwing people out of work at an alarming rate, the unemployment insurance system in New York and many other states will start cutting off benefits this week for thousands of people who have been unable to find jobs since early last year.

About 50,000 New Yorkers who had been collecting unemployment checks for 11 months — the longest stretch that benefits have been available since the last recession eight years ago — will stop receiving weekly payments this week, according to the State Labor Department.

In normal circumstances, people laid off from full-time jobs can collect benefits for up to 26 weeks, after which they fall off the rolls. But some of the people who will lose benefits this week have been on unemployment for 46 weeks because Congress approved extensions of jobless benefits twice last year.

This will be the first time since the early 1990s that workers are exhausting benefits that have been extended twice because of an economic downturn. The inability of those people to find work after so many months provides a stark reminder of the weakness of the job market, officials and experts say.

For many of those facing the loss of that lifeline, the next step may be welfare, experts say....

Read more: http://www.nytimes.com/2009/01/12/nyregion/12benefits.html?pagewanted=all

[Mrs. Overall]

1. "first time since the early 1990s that workers are exhausting benefits"-- under H.W. Bush

I also wonder if now these unemployed workers will no longer be counted as unemployed. I recall that being done in 2001 and 2002 after the high tech job crash and it made it look like less people were unemployed (to the government's advantage).

[DeepModem Mom]

2. Good question. I think that when new unemployment numbers...

are announced, news reports indicate that the numbers don't include people who have given up looking for work.

[Confusious]

3. I gave up

And have gone back to school, but then again, its been on my mind for at least two years now.

[OhioChick]

4. K&R

:kick:

[Corey_Baker08]

5. Does the unemployment number reflect only those recieving benefits or does it reflect all jobless?

I was always under the impression that it reflected the amount of people filing for claims. My parents were both denied unemployment through the state of Ohio after their layoff and they're now battling the system to recieve the benefits the rightfully deserve.

[DeepModem Mom]

6. Another good question. I hope a DUer with knowledge of these things will weigh in. nt

[Corey_Baker08]

7. I got an Answer on GDP.....

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x8082423

Pretty interesting Scenario...

Hi DeepModem Mom :hi:

[DeepModem Mom]

8. Lots of info! Thanks, Corey!

:hi:

[superconnected]

12. It only reflects who are receiving benefits. It's also good to note that in sept 2003

even though Congress voted it down, bush changed the reporting technique for unemployment to count all jobs as full time even if they were part time. Therefore if you work 1 hour per week you are counted as fully employed.

That change of reporting is why the unemployment rate before 2003 is not an applicable comparison at all to the unemployment rate after.

One more note - in sept 2003, the Department of Labor released the information that 180k jobs were lost the previous month. The bush admin pulled that report, recalculated it by counting parttime jobs as full time and then said 50k jobs were created. That gives you an idea of how skewed the numbers are now as the reporting is still counting part time jobs as full time. This is why during the winter/Christmas season unemployment goes down as stores take on temporary part time labor and in Jan unemployment goes way up as that part time help is let go.

[Blandocyte]

9. This is getting depressing

At least therapists and psychiatrists will stay in business taking care of all the depression and anxiety this situation is bringing on. I shoulda studied psychiatry...

[DeepModem Mom]

10. I'm afraid you're right, Blandocyte. Welcome to DU -- we can all commiserate together...

and maybe that will help!

[Donnachaidh]

11. they won't be much help to people without benefits

But hey, the gubmint will say things are looking up when those thousands fall off the *official* numbers list. :sarcasm:

[eilen]

15. Better to open a liquor store

Therapy is expensive.

[sarcasmo]

13. This is when the shit hits the fan.

[Azlady]

14. I could puke... reading about how bushco changed the

way unemployment is counted... my GOD how many people are REALLY out of jobs across the country?
I need a beer - oh shit, I need a case of beer.. just can't afford it!