The U.S. Congress is moving closer to passing a bill that would extend unemployment benefits in all states by 14 weeks. As of late Wednesday, the bill had paused in the Senate, as members offered various amendments, some of which are designed to limit the allocation. If passed, the bill would then have to be reconciled with a House bill passed a month ago that extends benefits by 13 weeks in high-unemployment states.
The pressure is on Congress to act due to the U.S.'s high 9.8% unemployment rate, and the lack of jobs being created in the economy. Since the recession's start, more than 7.2 million Americans have lost their jobs as of September, with officially 15.1 million Americans out of work, according to U.S. Labor Department data. Further, the number of long-term unemployed -- those out of work for 27 weeks and longer -- totaled 5.4 million.
However, although the official, base national unemployment rate is 9.8%, most investors know that the effective rate is much higher than that: the base unemployment rate does not count as unemployed those individuals who stopped looking for work, even if that break was only for a week. When those citizens are included, as well as those who are working part-time because they can't secure full-time work -- an indicator the Labor Department calls U-6 -- the U.S. unemployment rate increases to a staggering 16.1%.
Fiscal/Economic Analysis: It goes without saying that the view from here argues that Congress should swiftly pass the unemployment benefits extension. Moreover, Congress should brace to allocate even longer benefits. That's because although the U.S. economy is apparently growing again, monthly job losses could continue for months -- well into 2010.
Consider this statistic: During the Bush administration, after the end of the last recession in 2001-2002 and the resumption of GDP growth, the U.S. economy continued to lose jobs for more than a year.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
Reader Comments (Page 1 of 1)
10-28-2009 @ 8:46PM
whaaaaat? said...
yes sir, this will make the 'real numbers' sky rocket. 10%??? you ain't seen nothing yet. recoup all the unemplyeed that are not counted. 25%..... here we come
10-29-2009 @ 1:28AM
Bill said...
Unemployement will be high for some time. If the unemployed are denied a meager income, the econonmy will fall into further collapse. It is not like they want the money to buy a new Bentley.
10-29-2009 @ 5:26AM
bob said...
meanwhile, your "change" admin spends billions on anything BUT creating jobs. And some people keep defending them.
10-29-2009 @ 9:40PM
Brittanicus said...
As I perceive it the hardest place to install E-Verify, 287 G, or even directing ICE to raid employers is Sanctuary Cities and even States? CALIFORNIA seems to be the epitome of Sanctuary States, but it is estimated to be 127 cities and towns that ignore the US government. San Francisco and Los Angeles stands out as being Sanctuary cities where it's mayors Galvin Newsom and Antonio R. Villaraigosa, along with an compliment of police departments who have cultivated over the years a refuge for the impoverished illegal immigrants, illegal criminal of other countries. Very few businesses have enforced E-Verify, because at this time there is no mandatory law, except for federal contractors/subcontractors. Sen. Sessions has at this time been the fortress against illegal immigration through the Bush and now President Obama administrations. He is determined to adjoin E-Verify as a permanent amendment to the Senate Unemployment benefit extension bill H.R.3548 for 14 weeks. In the same amendment Sen. Sessions would require new applicants for unemployment compensation to have their citizenship status verified using E-Verify. The computer software program E-Verify could also be used for identifying applicants for drivers licenses, automotive insurance, all health care benefits, real estate purchases and mortgage and of course ineligible workers. Even the Public option if enacted in health care could be used to verify all positive recipients and over time become a very sophisticated matrix of data bases to reject ineligible applicants for government benefits.
Senate leaders are currently negotiating which amendments will be considered for the bill, and Majority Leader Harry Reid (D-Nev.) is trying to prevent a vote on the amendment altogether. E-Verify is becoming a significant potent weapon against illegal immigration in the ongoing battle. It has come under constant legal bombardment by a long list of open border organizations, including the US chamber of Commerce. E-Verify however remains intact, although other enforcement tools such as 287 G, has been weakened by Homeland Security chief Janet Napolitano. Without millions of dollars being appropriated, E-Verify on a continuous basis can eradicate illegal labor for pennies. No need for mass deportation as E-Verify will streamline removal of foreign nationals, owing to parasite businesses will be in incessant fear of being fined or sentenced to a prison term if apprehended by ICE for using illegal workers. As with 2010 census? Those who entered without--THE PEOPLE'S--permission, have violated our laws, and should not, must not be allowed to be enumerated in the decennial census? Is Washington so sure that they will pass this 2nd Amnesty, when Ted Kennedy previous comprehensive immigration reform turned into fraudulent travesty?
Ordinary American workers have become watchdogs for suspicious activity in the working environment. My blogs, comments and articles are limited in information, but keep this issue under public scrutiny. For more details of malevolent politicians who need to be constantly reminded who they work for? For immigration enforcement grading NUMBERSUSA. To light a fire under nonchalant politicians who are selling American workers futures to highest bidder contact WASHINGTON at 202-224-3121 As easily as you voted for these people, you can vote them OUT? Demand NO--MORE--AMNESTIES. Rebuild a two-tier Southern border fence as originally intended. TELL THEM YOU WANT PERMANENT E-VERIFY FOR EVERY WORKER, WHO’S ON A PAYROLL. STAND WITH SEN. SESSIONS. Study the corruption in every level of government at JUDICIAL WATCH. Read about unstoppable OVERPOPULATION GROWTH at CAPSWEB. Read lists of legislators are trying to push through another path to citizenship--alias AMNESTY at http://tinyurl.com/CIR-letter-to-POTUS. THESE CONGRESSMAN/ WOMEN WANT TO STEAL YOUR JOB AND GIVE IT TO ILLEGAL ALIENS? KEEP THEM EMBOSSED IN YOUR MEMORY AND UNSEAT THEM WHEN THEY COME FORWARD FOR RE-ELECTION.