Unemployment benefits at risk

[Better Believe It]

Unemployment benefits at risk
By Tami Luhby
August 4, 2011

The debt ceiling agreement did little to help the millions of jobless Americans whose federal unemployment benefits are set to run out early next year.

The unemployed had hoped that the debt ceiling deal would include an extension to file for federal unemployment benefits. But in the end, policymakers focused only on cutting federal spending.

As it stands, most people laid off today will not be eligible to collect federal unemployment benefits after their state benefits run out. And those collecting federal benefits could find themselves cut off before receiving the full number of weeks for which they are now eligible.

Early estimates say more than three million jobless Americans could see their benefits disappear in early 2012 unless Congress acts. There are currently 3.8 million people receiving federal benefits, though some will get jobs or run out before year's end.

Read the full article at:

http://money.cnn.com/2011/08/04/news/economy/unemployment_benefits_debt_ceiling/index.htm?hpt=hp_t1

[jannyk]

1. "Recession Seen Looming as Jobless Benefits End" today's CNBC

Surprise!!

"Recession Seen Looming as Jobless Benefits End"

The likely loss of unemployment benefits for 3.71 million Americans in a few months will only add to an economy edging ever closer to recession, according to analysis that puts the chances of another downturn at better than 1 in 3.

"We do not expect them to get extended," BofAML economist Joshua Dennerlein wrote in a note to clients. "This will act as a hit to income, hurting consumption growth in the first half of the year."

"We argue that after a series of sucker punches earlier this year, the economy is only one shock away from falling into recession."