by Frank James
Today's labor market report with its alarming numbers, a 7.6 unemployment rate and 598,000 jobs lost in January, is a sign of even more stress to come for state unemployment funds which are being depleted around the country.
Also, unemployed workers in some states are going to find themselves waiting even longer to collect unemployment insurance benefits since numerous states were already having problems dealing with the spiking numbers of applications from prior months which are only going to grow.
The Wall Street Journal reports on states running out out of money to pay the unemployed. An excerpt:
A growing number of states are running out of cash to pay unemployment benefits, a sign of how far social-welfare systems are being stretched by the swelling ranks of the jobless in the deteriorating U.S. economy.
Unemployment filings have soared so high in recent months that seven states have already emptied their unemployment-insurance trust funds, which were supposed to see them through recessionary periods. Another 11 states are in jeopardy of depleting reserves by year's end, according to the National Conference of State Legislatures, which published a January report entitled "The Crisis in State Unemployment Trust Funds." So far, states have borrowed more than $2.3 billion in emergency funds from the federal government, money they are required to pay back.
The Washington Post also reported that unemployment offices around the nation are collapsing under the weight of all the unemployed applying for benefits.
The WaPo story focuses on the Washington, D.C. area but, as it says, the problems are national in scope. Here's a snippet:
Thousands of people in the Washington area and hundreds of thousands more across the country are waiting longer than they should for unemployment benefits at a time when they need the money the most because rising joblessness is overwhelming claims offices, records show.
The problem is compounded by a simultaneous decrease in federal funding, which has reduced staffing at some local government offices. The result is that the District and many states, including Maryland and Virginia, are failing to meet federal guidelines that require timely processing of unemployment claims, appeals and benefit payments, the records show.
It's likely to get worse...
... Carrie Kenworthy of Manassas has experienced the problem. She was laid off from her $80,000-a-year job as a mortgage loan officer in 2007. Then she tried to file for an extension in unemployment benefits in July. The Virginia Employment Commission denied her claim three times. Her appeals took more than two months because of a state backlog in cases.
Her benefit extension was approved last week, but not before she had been evicted from her three-bedroom Gainesville townhouse and sold most of her possessions. Yesterday, she was notified that she is being evicted from her new apartment in Manassas.
"You talk about a nightmare," Kenworthy, 45, said as she flipped through the sheaf of documents she used to prove her eligibility for benefits. "We're not on welfare. We're not looking for handouts. We worked for this, and we have to go through all this hardship just to pay our rent."
Comments
There are state funds left in Michigan and Pennsylvania? Quit joking. We already know they've had their hands out to the federal government for months. You too, California.
Posted by: Jeff | February 6, 2009 12:21 PM
It is shameful that some in the media and Congress, earning cushy salaries, unaffected by the impending crisis, asks what's the rush? But, thank God, there is a new Sherrif in town as President Obama takes his fight to the people. He understands the American people are hurting and needs help NOW, found here due to greed and neglect! This Stimulus will re-boot the stalled economy but also be an Investment for future generations, investments too long denied by Republicans who believe Goverment is a problem -- not a solution. They are negative and not positive and nothing from nothing leaves nothing.
Republicans' new talking points regarding help to the people in the form of a stimulus - is that the polling shows the American people are against this Stimulus (against help)! What planet do they live on. By the day, Blue and White collar workers are losing thier jobs, homes, cars. They are resorting to food and bread lines; unemployment compensation and food stamps (by the way the GOP calls this Welfare). The American people are hurting and the GOP are playing political games -- let's damage the President, instead of putting their time and care on the crisis looming large for the American people. At least for Once!
Not unexepectedly, the GOP cry loudly, that that is not the way for Pres. Obama to win -- taking it to the airwaves, (however, he tried being diplomatic and nice)! They don't want him to fight -- to Expose their phony objections and impediment to this catastrophe. They don't want light but President Obama believes in transparency, and there is no time to lose in this situation. This patient, the U.S. economy, needs emergency care, now. Thank God, a new Sheriff is in town and President Obama is fighting for You. This country has waited long enough for a blood transfusion, and theres no time to lose!
This is not about Pork, as GOP wants you to believe -- this is about the saving of our economy, our way of life. America is crumbling all around us and the GOP wants to play political games, as usual! As custodians of the people, President Obama assumed that due to the direness of the situation, Congress would Act accordingly and pass a stimulus, not try to Revive their policical party, when the country needs to be revived, for once to act selfless and put others before themselves!
We must remember, that when the GOP were in control they held no oversight hearings on anything, they did not increase the minimum wage, their concern was not about our crumbling bridges or dirty air, water, contimanted food and Ponsy Schemes that robbed people of millions.
What the young people know, is that we have to re-boot the economy and also Invest in Future Generations and it takes money -- a stimulus to do. We will know what to do in 2010, get rid of those who want to hang onto the old ways which do not work. Old ways which neglect our infrastructures -- crumbling schools, bridges and sewers, who want to hang onto the old ways of energy, even though it pollutes our air and water. We will know what to do in 2010! We need positive leaders who are able to envision a positive future, not negative ones, with the same old stale ideas, and do nothing for the people, year after year after year!
Posted by: Angellight | February 6, 2009 12:41 PM
yeah, Obamabot, we wouldn't want to take the time to get this stimulus right or anything. After all, passing the last "stimulus" because it was such an emergency worked so well, after all.
"impediment to this catastrophe"
?? Personally, I HOPE that they impede catastrophe.
Posted by: Jeff | February 6, 2009 12:52 PM
I HOPE that they impede catastrophe.
Posted by: Jeff | February 6, 2009 12:52 PM
I couldn't have said it better!!!
Posted by: Rush | February 6, 2009 1:03 PM
If we stopped wasting $150 billion annually in Iraq, maybe Americans wouldn't be hurting so badly.
Posted by: BC | February 6, 2009 8:59 PM