CHICAGO, Aug. 6, 2009

Many Could Lose Unemployment Benefits

Unless Congress Acts, 1.5 Million Will See Checks Run Out by the End of the Year

  • Play CBS Video Video Unemployment Benefits

    Unless Congress extends unemployment benefits, the checks of roughly a half-million Americans will run out by the end of month -- and more by the end of the year. Cynthia Bowers reports.

  • Joe Thurman, who lost his job in January. His benefits run out in October, and he's afraid his family will lose their house.

    Joe Thurman, who lost his job in January. His benefits run out in October, and he's afraid his family will lose their house.  (CBS)

  • Interactive Eye On The Economy

    In-depth features on U.S. markets, taxes, employment and the Federal Reserve.

(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.


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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.
Reply to this comment
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.
by veteran7796 August 6, 2009 10:28 PM EDT
Well, if the lazy deadbeats would get off their A** and go get a job the money wouldnt be running out. I AM referring of course to the people who LIE every week about looking for or finding a job so they can collect their check while they sit on their a** doing nothing. There ARE many people who cant find jobs...that is of course excusable. However, there is no shortage of the frauds...I know about 4 of my neighbors who do this. They say, "Oh, they never check for real man...I just say Im looking for a job and they keep paying me...Im good for 6 months". LOSERS !!!

The way I see it, if you can find a job...u should work regardless of education, experience or pay. Whatever you make in dollars should be deducted off of your unemployment check and you only receive the difference. That means, if Burger King is hiring and you make $200.00 per week there, and the state maximum pays $352.oo per week...well, you should ONLY get a check for $152.00 per week from the state. Additionally, you should HAVE to take the job at Burger King if they are hiring...PERIOD. Not only does it give you money, but it puts revenue back into our government and keeps businesses going.
Reply to this comment
by drsuz August 6, 2009 11:50 PM EDT
I totally agree with you. Their only fear is that their buddies might come in and see them flippin burgers and start laughing.
by democracy1 August 7, 2009 9:25 AM EDT
"Whatever you make in dollars should be deducted off of your unemployment check and you only receive the difference. That means, if Burger King is hiring and you make $200.00 per week there, and the state maximum pays $352.00 per week...well, you should ONLY get a check for $152.00 per week from the state."
********

I agree. But I believe that most, if not all, states have this policy in effect already.
by debinok1 August 6, 2009 10:12 PM EDT
Clintons fault, Bushs fault, Democrats fault, Republicans fault. Guess what, none of them did ANYTHING to stop it. They have happily watched as US jobs have been shipped overseas and have watched as H1B visas take over jobs here. They can call it what they want, but in the end it is SUICIDE for AMERICA.

Time to RECALL ALL ELECTED OFFICIALS!
http://www.thepetitionsite.com/1/are-we-confident-our-government-is-working-for-us
Reply to this comment
by h1b-r2i August 10, 2009 11:55 AM EDT
The total number of H1Bs never crossed 650k and you are saying thats responsible for all this??? Well, the government is trying all kinds of shady tactics these days to harass and evict H1Bs and their family members, none of which we hear in the media, coz its a big political issue now. H1bs are already down 25% and would probably disappear completely in a few years. All those crying hoarse against H1Bs are the ones who were being overpaid for their lousy skills all these years. The smart ones aren't worried.
by themooniac August 6, 2009 9:59 PM EDT
Out of work thank the eight years of Republican leadership. Or if you live in Texas thank Republican Gov. Rick Perry for turning down the 500 million for extended unemployment benefits that was offered to the state thru the stimulus package. "Good hair" Rick says "let them eat cake!"
Reply to this comment
by drsuz August 6, 2009 11:48 PM EDT
But you failed to mention the "conditons" that came with the $500 million you quoted. Once that $500 million ran out, your State HAD TO CONTINUE the program and fund it all on their own. And that my friends is how the Federal Government is getting involved with the runnings of a Stte Government which by the way is against the Constitutional law which states the Federal Government cannot interfer with the runnings of a State Government. look it up.
by retiredgustav August 7, 2009 1:15 AM EDT
The unemployment fund in Texas is broke. The State has to borrow the money from the Feds to keeep it solvent. Nice going Rick Perry!
by hungry1968-16 August 6, 2009 9:54 PM EDT
by PeaceHasAPrice August 6, 2009 9:43 PM EDT
No it wasn't. I was the democrats mess. George Bush had an unemployment rate of 4.8% (lower than Clinton's average), and a 3% growth in the economy the quarter before The New Party Democrats came in and started their hate the successful people campaign in January 3, 2007.

We've lost close to 20 million jobs since then, that'a FACT! You don't have a recession/depression when people have jobs and that's a FACT!







Q: Why don't you go ahead and tell us all what Bush and Cheney did to stop the moving of half of America's production jobs overseas?



A: Created EVEN MORE free trade agreements to give "American" companies incentive to MOVE those jobs overseas, and then attempted to give instant amnesty to 20 million illegal aliens, so that they could flood the labor market and drive wages into the basement!!




I can't believe how stupid you blind and ignorant neo cons are.
Reply to this comment
by rhs648 August 6, 2009 9:35 PM EDT
My first job at age 14 was working in a grocery store after school and then McDonalds. From that, I graduated to a men's clothing store and as a custodian and worked my way through college followed by a teaching posistion for five years, thirteen years as an insurance agent, and twenty years as a publisher. I have never been unemployed or without health insurance. My kids are grown and successful. Over the years, I've often told my wife that I would work in a grocery store or as a custodian again if that is what I had to do to put food on the table. It is very hard for me to comprehend people who collect unemployment benefits for a year and a half. There are just too many opportunities out there for people who want them. No job has ever been beneath my dignity.
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by veteran7796 August 6, 2009 10:34 PM EDT
AGREED 100%. I feel the large majority of these people have a degree and feel mopping a floor is beneath them...or they are simply lazy. many people simply feel working fast food is embarrassing and ruins their street cred and so on. I do agree..there are SO many jobs out there to bring in SOME money.

Case in point, the owner of a local McDonalds here in town started out doing fries there 20 years ago and stuck with it. He now makes hundreds of thousands a year. GET TO WORK!!!
by drsuz August 6, 2009 11:43 PM EDT
That is the problem with today's society. Everyone wants a job, but they also want the pay they were making when they got laid off. To take a job that paid half of what they use to make even though it would put food on the table or help pay their bills, golly, it is beneath them. There are jobs out there but god forbid they would have to relocate to another city or state. Then there are those who feel they can sit home and get money for doing nothing so why work. Hey, I got kids, I'll go on welfare. Yet when the money runs out or they lose their big fancy vehicle or home or their kids might not get a new wii system or laptop or cell phone or, god forbid, they might have to shop at a second hand store or yard sale for clothes, they whine and sob and cry foul.

But it also amazes me they have the money to have cell phones, get tatoos, fake nails and hair weaves, heck even their cigs, beer and weed.
And how do they pay for their car insurance???
by medwards476 August 7, 2009 3:34 AM EDT
While I do agree that some of the people are milking the system. There are issues with hiring that do exist and hinder some people.

You first have to apply, which is where a "hang-up" might be. Some places only have online applications and there are people who are not tech savvy and haven't mastered it.

But, let's say you get past that....there is the interview, which some never get called to. If you are lucky to get called, then the employer doesn't always have to hire you or offer you the job; so you have to wait for another interview......

In one month I put in 12 applications, got called to 3 interviews and got called to 1 job.

Not good odds, considering that 85% were fast food jobs, an industry I have quite a bit of experience in. That was a 1 in 4 interview chance, and a 1 in 12 chance of landing a job. That was in 1 month.

Some places are afraid to hire "overqualified" people as the employers are afraid to pay out more because of the experience. That has cost me many a job--being too qualified. I have an issue with it, as I would take any job, but the employers have issues with it. This is first hand knowledge.

Also with regard to the money, some people HAVE to make a certain amount to cover their housing, transportation, health and food costs. If those costs are say $1500 a month, then a job that pays $800 a month wouldn't help at all. It would be better to stay on government assistance. Once you start a job you lose all medicaid & unemployment assistance. Meaning you would have to cover 3 months of medical before your insurance kicked in, and you're right back in the poorhouse or never leave it.

The best thing is to quit hiring from other countries, keep jobs in state, and force the management & corporate officers to take a cut in pay so there isn't all this unemployment.

We need to see what industries are laying off and see how we can alleviate that.

Also, if more and more people become unemployed that hurts the fast-food industry as it is cheaper to eat at home....thus meaning the fast-food worker has now lost their job.
by akpals August 7, 2009 10:50 AM EDT
Amen! I actually had a really good job and was happy there, but also got laid off. I decided to go back to school, and then decided to wait tables, bartend etc. to not sit around on unemployment all summer. Thing is, it pays decent even out here in the sticks, and I'm really enjoying not having to think much at work. It's also been a fantastic time with the kids, backyard bbq's and days at the lake instead of those expensive vacations where everyone is exhausted and crabby by the time you get there. Oldest daughter even went out and found herself a job. When she got her first paycheck she said, "Mom, it feels so good to have money of my own instead of having to ask you for it!" Point is, job loss is a really hard thing and everyone feels bad about it, but it's not the end of the American Dream like this guy is saying. Just don't be so rigid, goals can and should change.
by medwards476 August 9, 2009 4:38 AM EDT
I think what he is trying to say, is if he can not find work that pays what he needs to cover his expenses, his family will lose their house (the place they live in and sleep in), and their American Dream of owning a house and being able to pay it off and OWN it, is over.

"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."

At age 51, he is getting too old to try and start over with another house payment (most mortgages go 20-30 years) and not to mention the "youth oriented" job market.

Some employers do not want to hire workers over 50 as the employers are thinking "hey, he/she is not going to be at this job too long as he/she is nearing the retirement age". Wrong as it may be, it happens.

I am working a minimum wage job to bring in a "little" extra money to help my mother....but if she loses her $22 hourly job, we would not survive--plain and simple.

There are no more extras for us to cut out. The only "extras" are food and medicine. We need our car to get back and forth to our jobs and we need car insurance. We would be evicted from our home, lose our car and not be able to afford our medical care/costs.

We do not have a savings. So there is no money for school in order to get another job.....if we did have it, it would have to sustain us for the expenses.

Yeah, that is enough to say "the american dream is dead". For those who are trying, it is a frightening reality. To those milking the system--they will find another "free ride", as they always do.

By the way, it also depends on WHERE you live (how much rent, gas & utilities cost), and HOW much were you making in contrast to the job you lost and the one that replaced it; like losing a $9/hr and replacing it with $7-$8/hr. Not to mention your family size.

Too many variables exist to rush into a "judgment" comparing one person's situation to another's or your own.

If you need to make $22 an hour to cover your expenses, $9 isn't going to pay much towards mortgage/rent (here $1200), vehicle maintenance (car payment/gas $400), medical costs ($200), food ($300), car insurance ($100-$300) and utilites (telephone/electric/gas/water--$315)--total $2515-$2715. You would have to go exempt on your W-4 and not pay federal income tax (and live in a state without "state income tax") and you would still be short roughly $1100-$1300 per month.

And that is saying the employers will hire someone in their 30's-50's and not a "fresh out of high school" or "college" grad.

It is a matter of perspective. What one considers "death of the american dream" is not the same as another persons.

Even my mother who has been doing her job for 18 years has tried to apply for the same position (unit clerk) in different departments/floors in the hospital she works at and is told "she isn't qualified enough".

Yet, her evaluations contradict that. She is 58, perhaps age has something to do with it after all???

Just a thought........
by hungry1968-16 August 6, 2009 9:33 PM EDT
by the_majesty August 6, 2009 8:14 PM EDT
Obama and his gang should take all the money that they are wasting on Clunkers and use it to help these people.







When does Iraq start paying us back the $3 TRILLION we spent over there?
Reply to this comment
by aheadace August 6, 2009 10:59 PM EDT
The people in Iraq did not invite us GEORGE BUSH DID!!!!!!!!!!
by drsuz August 6, 2009 11:32 PM EDT
When does Iraq start paying us back the $3 TRILLION we spent over there?

After they take off all the charges for destruction we did to their buildings and land??
by ivelost August 6, 2009 9:04 PM EDT
This country has lost its way, republican,democrat. democrat,republican makes no difference what you call them. They are out for themselves period! notice I did not capitolize their names. They don't deserve it.
I have lost 95% of my jobs in last 2.5 years. I get no relief in the way of unemployment bennefits. I am a self employed contractor. the government can print anything they want in the way of numbers of unemployed, however it suits them. Most of my work loss has been taken by illegal aliens, or contractors using them. The others due to nafta and jobs being shipped overseas. This is because republicans and democrats have done virtually nothing to protect us, American worker's & tax payers be dammed. Please stop defending both of the totally corrupt political parties. thank you. mt.
Reply to this comment
by drsuz August 6, 2009 11:29 PM EDT
Hey, I am totally with you..Neither past or present administration have done NOTHING to keep companies here. They are closing their doors and reopening them down in Mexico or overseas. We have illegals and YES, THEY know where they are and yet are doing NOTHING..Oops me bad, yes they are. They are coddling them by letting them get their hands into our welfare systems and medical programs and social security. And it wouldn't be so bad, but hey, its MY TAXES that are paying for it.
by johnbrown8888 August 6, 2009 7:35 PM EDT
Yes, the Reaganite "tinkle down" theory sure has done wonders for the American Dream--for Bushit's Billionaires!

Out of work? Thank a Repiglican.
Reply to this comment
by mike18881 August 6, 2009 9:25 PM EDT
I agree it was the republicans, I lost my job under bush, thanks republicans. Believe in you bush failure.
by cbsbanned August 6, 2009 10:15 PM EDT
I am going to go real slow -so put down the ipod and stop drinking the cool aid-Listen

Bush went bye bye. Obama is the president. HEY LIBERAL pay attention. Bush is gone bye bye Bush. Wave bye bye to Bush.


Now Obama is the president. Say hello Obama, say hello Nancy Pelosi. Say hello FREAK LIBERAL democrat majority. Say bye bye Bush.

Any questions ? Good, now drink your cool aid.


Obamanation
by drsuz August 6, 2009 11:22 PM EDT
by mike18881 August 6, 2009 9:25 PM EDT
I agree it was the republicans, I lost my job under bush, thanks republicans. Believe in you bush failure.

Hey Mike..You lost your job under Bush?? Well I am losing my SAVINGS and my IRA is taking a dump under Obama. I think we are even...
by brooke50 August 7, 2009 12:44 AM EDT
cbsbanned - fantastic post - I guess people forget the Obama is President, although with his media wh... it's hard not to know!
by sjc_1 August 7, 2009 2:52 AM EDT
After 8 years of deficit bloating tax cuts for the rich and 6 years of an insanely expensive no bid contract war in Iraq, the economy is in shambles. It will take a while for the President to fix this mess that took years to create by a Republican President and a Republican Congress. Republicans destroy the country and the Democrats fix the mess the Republican make. It has always been that way, but one of these times the Democrats may not be able to fix it.
by hawaiianchica423 August 6, 2009 7:28 PM EDT
The Borgen Project has some good information on the cost of addressing global poverty (borgenproject dot org).
It only takes $30 billion annually to end world hunger!
Yet... we are spending $550 billion annually on the defense budget.
Reply to this comment
by the_majesty August 6, 2009 8:00 PM EDT
It is time for the American people to except the fact that Obama is a failure. Real Democrats and Republicans must work together to save America from Obama and the Obama democrats.
by the_majesty August 6, 2009 8:14 PM EDT
Obama and his gang should take all the money that they are wasting on Clunkers and use it to help these people.
by cbsbanned August 6, 2009 10:11 PM EDT
Thank you democrats for doing this to us. Please continue to mess up the economy more-Oh I forgot come on LIBERALS join me "Bad Bush/Cheney Bad"

Obamanation
by drsuz August 6, 2009 11:18 PM EDT
by the_majesty August 6, 2009 8:14 PM EDT
Obama and his gang should take all the money that they are wasting on Clunkers and use it to help these people.

Did you not know?? By this program they are putting all these people back to work.. Yeah right..
by brooke50 August 7, 2009 12:41 AM EDT
I could have swore Obama stated the recession is ending? If this is true, why are more and more people filing for unemployment and now Congress must get more money to spend our it will run out -

Where are all the jobs - IF RECESSION IS ACTUALLY ENDING. (I forgot, this was another one of those in 2010 promises of his)
by book_of_wally August 7, 2009 8:35 AM EDT
If we ended world hunger, wouldnt the supply of humans then increase to the point where there is hunger again?
by book_of_wally August 7, 2009 8:36 AM EDT
by the_majesty August 6, 2009 8:00 PM EDT
It is time for the American people to except the fact that Obama is a failure. Real Democrats and Republicans must work together to save America from Obama and the Obama democrats.
=======================
I suppose. I have already accepted the fact that you are a failure.
by democracy1 August 7, 2009 1:09 PM EDT
by brooke50 August 7, 2009 12:41 AM EDT
I could have swore Obama stated the recession is ending? If this is true, why are more and more people filing for unemployment and now Congress must get more money to spend our it will run out -

Where are all the jobs - IF RECESSION IS ACTUALLY ENDING. (I forgot, this was another one of those in 2010 promises of his)
**********
ANY economist will tell you that employment ALWAYS lags behind other economic indicators in a recovery. Please attempt to get an education.
by avigil2 August 7, 2009 1:35 PM EDT
by the_majesty - It is time for the American people to except the fact that Obama is a failure.

Uh... I think you mean Bush and the Republicans.
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