1.3 million losing unemployment benefits Saturday [View all]

[Omaha Steve]

Source: AP-Excite

By BRADLEY KLAPPER

WASHINGTON (AP) - More than 1 million Americans are bracing for a harrowing, post-Christmas jolt as extended federal unemployment benefits come to a sudden halt this weekend, with potentially significant implications for the recovering U.S. economy. A tense political battle likely looms when Congress reconvenes in the new, midterm election year.

Nudging Congress along, a vacationing President Barack Obama called two senators proposing an extension to offer his support. From Hawaii, Obama pledged Friday to push Congress to move quickly next year to address the "urgent economic priority," the White House said.

For families dependent on cash assistance, the end of the federal government's "emergency unemployment compensation" will mean some difficult belt-tightening as enrollees lose their average monthly stipend of $1,166.

Jobless rates could drop, but analysts say the economy may suffer with less money for consumers to spend on everything from clothes to cars. Having let the "emergency" program expire as part of a budget deal, it's unclear if Congress has the appetite to start it anew.

FULL story at link.


Read more: http://apnews.excite.com/article/20131227/DAAUVIGO2.html

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This Aug. 14, 2013 file photo shows job seekers checking out companies at a job fair in Miami Lakes, Fla. More than 1 million Americans are bracing for a harrowing, post-Christmas jolt as federal unemployment benefits come to a sudden halt this weekend. The development entails potentially significant implications for the recovering U.S. economy and sets up a tense battle when Congress reconvenes in the new year. (AP Photo/Alan Diaz, File)