Congress Expected to Pass Unemployment Benefits Extension

Monday, September 21, 2009

Rep. Jim McDermott (D-Wash) has offered a bill that would extend unemployment benefits for an additional 13 weeks; to those nearing exhaustion of benefits who reside in States with unemployment rates above 8.5%, and who are scheduled to exhaust benefits at the end of September.  California is one of those states.

The current Bill is scaled down and comes on the heels of a more ambitious effort that would have extended benefits through 2010.  This current Bill is intended to protect displaced employees through the end of this year (2009), however the National Employment Law Project anticipates that as unemployment rates hover at or above 10% further extensions may be necessary, potentially into 2011.  While the earlier Bill appeared to garner some resistance, the reduced effort is expected to gain broad support and pass through the House easily.

President Obama, speaking earlier today on “The Late Show with David Letterman” hinted that the jobless rate is likely to persist for another year, at minimum, pointing to stimulus efforts that are beginning to catalyze economic recovery that eventually will lead to job recovery.