August 6, 2009 8:32 PM

Many Could Lose Unemployment Benefits

By
Cynthia Bowers
(CBS)  It's becoming a painful routine for the millions of Americans out of work - lining up first outside job fairs, then asking for help at unemployment offices.

"It's very humbling," said Donald Mayes, now unemployed after a 19-year job. "I've never had to do this."

What's more, unless Congress acts to extend unemployment benefits, an estimated half million people will see their unemployment checks run out by the end of next month - almost a million and a half by the end of the year, reports CBS News correspondent Cynthia Bowers.

More than half a million more workers joined the line for unemployment benefits last week, falling in behind more than 6 million already collecting.

Joe Thurman of Chicago, a married father of two, lost his job in January and is one of 9.3 million Americans getting a check. But his benefits run out in October.

"To me it is doomsday, it really is," Thurman said. "I don't know where we're going to come up with the money to make our bills."

Let alone tuition for daughter Melanie and son Matthew.

A new study finds Illinois is one of 17 states borrowing federal dollars to keep its unemployment checks from bouncing. As the demand for benefits continues, it's estimated another 14 states could need a bailout by next year.

Typically the unemployed could count on just 26 weeks of benefits. Congress approved money for an additional 53 weeks, which now extends benefits to a year and a half - the longest stretch in the program's history.

"This is the biggest test of the unemployment system since it was started 75 years ago," said Andrew Stettner with the National Employment Law Project.

But even extended benefits, which only amount to half his pay, Joe Thurman worries he will not be able to keep his family afloat much longer.

"We'll probably lose the house," Thurman said. "The American dream is dead. It's over."

Now at age 51 he tries to start over, competing with more people for fewer jobs. July's unemployment figures are out Friday, are expected to hit 9.6 percent - a 26 year high.

Copyright 2009 CBS. All rights reserved.
Add a Comment See all 49 Comments
by ddnlj November 30, 2010 6:23 PM EST
I'd agree with putting a few more politicians and their overpaid aides, secretaries and staff out of a job in order to pay more working Americans who actually WORK and deserve a salary.
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by ddnlj November 30, 2010 6:20 PM EST
Oh, sure. Let's give everyone a job at Burger King after they've held living wage jobs for years. Sure, let's give them a job flipping burgers and let them lose their homes and everything they've worked for.

Instead of blaming American working people why don't we point fingers at the corporations and businesses that have kicked us to the curb in favor of foreigner workers? Why don't we get angry at the companies who suddenly are finding themselves making record profits but aren't interested in hiring. Why don't we take issue with corporations by CEO's outrageous salaries and bonuses while still laying workers off?

No, some people would rather find fault with people who have worked hard all their lives and been destroyed by the companies who have done everything possible to find cheap labor either through illegal workers work the thousands of H1B visas they haul in here to take our place.

You never know though, do you? It could be YOUR job next. See ya at Burger King (and let's hope you can keep making those mortgage payments and keep your kids fed. Hell, there's always food stamps.)
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by technoabc August 10, 2009 11:53 AM EDT
Why are all the morons congregating in the Republican Party?

I am baffled how anyone can blame President Obama for this mess. The guy has been office six months, while the Republicans held the White House for eight years. I'm really not sure if its genetics or just morons stick to gather.
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by MurphysLaww August 8, 2009 12:56 AM EDT
It's always amazing to me to see the delusional rants against the current administration. How do you come to the conclusion that a lagging factor like unemployment has anything remotely to do with the Obama administration?

The fact that job losses are decreasing are a factor attributable to increasing employer confidence directly related to economic stimulus, be it tangible or only psychological, depending on the industry. The reason we're in the predicament we're in is directly related to republican administrations that like to let you believe that we can not pay taxes, yet continue to spend.

If republican administrators were as accomplished at actually managing budgets as they are at playing off sound bites, then their rhetoric would make sense, but unfortunately for all of us, they aren't.

I'll refer you to deficit #'s from 1961 to present from the CBO, and you can see what administrations increased our reliance on foreign investment, and those that decreased. I'm sure you'll figure out a way to explain it away, but that's the real story no matter how you spin it.

I can understand the desparation, though, When Obama follows the previous two Democratic administrations and lowers the deficit, eventually, and the economy recovers, I'm not sure the Republican party will be able to recover this time, and figure out a way to explain it away.

http://tinypic.com/view.php?pic=sgh9cn&s=4
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by gosstom August 7, 2009 11:37 PM EDT
What's more, unless Congress acts to extend unemployment benefits, an estimated half million people will see their unemployment checks run out by the end of next month - almost a million and a half by the end of the year, reports CBS News correspondent Cynthia Bowers.

More than half a million more workers joined the line for unemployment benefits last week, falling in behind more than 6 million already collecting.

Great news for the government! The people who run out of unemployment eligibility are no longer included in the official unemployment figures---they just disappear! Way to go, President Umomma.
Reply to this comment
by diggyzazz August 7, 2009 11:30 AM EDT
H-1B SCUM MUST LEAVE U.S. NOW OR FACE VIOLENCE FROM AMERICANS.
Reply to this comment
by Aldymac August 7, 2009 6:46 AM EDT
Has anyone ever noticed that after democrats vote, their hands always automaticly come to the palms up position? Thats for handouts.
Democratic polititions are only geared for hand outs, makes for bigger a voter base, they prey on the poor saying; "we will help you out by raising taxes on the rich and redistributing their wealth to the poor." Isn't that what the poor want to hear? " Yeah, I'll vote democrat, now gimmie my handout."
Taxing the rich more than they already pay is the first thing that is done to creat more unemployment.
There is a 39% tax on industry to work in this country, there is an 11% tax in countrys outside the U S on industry, so where is the incentive to keep industry here at home?
I worked for 50 years for social security, President Johnson, D-Tex., put the social security fund in the general fund, that made it easier for polititions to access the money in that fund. So, will I get unemployment when that fund runs out? I have read that the social security fund has less than two years left in it. Now Obama is letting illegal alieans draw from that fund as well as people from other countrys who have never put a dime into that fund, does that sound like responsible government to any of you who support Obama?
Reply to this comment
by democracy1 August 7, 2009 9:40 AM EDT
"Now Obama is letting illegal alieans draw from that fund as well as people from other countrys who have never put a dime into that fund"
**********
Please supply a credible link to back this up.

As to the 39% tax on businesses, their effective tax rate, after loophole after loophole, is substantially less than that amount. In fact, many businesses pay less than 15% after all deductions, etc.
by bgolds August 7, 2009 12:48 AM EDT
You dope.

Remember when your Republican friends were trying to get Mexican truckers permission to take over the U.S.?

Remember when fuel prices rose to the highest level in history during the Oil Man's rule?

I hope you get your little Republican wish-list good and hard for a long time.

You deserve it.
Reply to this comment
by cattiej August 6, 2009 11:25 PM EDT
Now that we have given billions to illegal alien's and other countries, and have financed the illegal war's in Iraq and Afghanastan, our country only has a little more time to go before we are in another Depression that will make the 1920's & 1930's look like a birthday party..Buy American products only...the job you save may be your own. To all the people reading these comments, if you have a job, how safe are you, you know you aren't..it's just a matter of time before you job may be sent overseas to India, China, Mexico. Our Congress has sold us down the river..maybe we should all get an ark like Noah did and line up 2 by 2...
Reply to this comment
by drsuz August 6, 2009 11:55 PM EDT
Until they send all the trucking overseas and shut down the trucking industry, I don't think my family has to worry.
by dkhorse11 August 6, 2009 10:49 PM EDT
I'm waiting for the rosy media headlines.

"Economy improving! Those collecting unemployment benefits drops by 1.5 million."
Reply to this comment
by drsuz August 6, 2009 11:50 PM EDT
You have a VERY LONG WAIT my friend.
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