Jobless Benefits to Expire for 1.3 Million

Welfare, Food Stamps May Be Next for Those That Can't Find Work by End of Year

(AP)  Jobless since January, Donald Money has already moved in with his elderly parents, stopped going to the movies and started using less of his prescription medication so it will last longer.

This month, something else will fall by the wayside: Money's unemployment check. The 43-year-old former printing press operator is among the more than 1.3 million Americans whose unemployment insurance benefits will run out by the end of the year, placing extra strain on an economy that is just starting to recover from the worst downturn in a generation.

These are the most unfortunate of America's 14.5 million jobless: the ones whose benefits are drying up — in some cases after a record 18 months of government support.

With savings depleted and job opportunities scarce, people who've run out of benefits are living with relatives and borrowing cash from friends. They are even skipping meals. Through it all, they are trying to stay positive through exercise and prayer.

The government said Thursday that 570,000 laid-off workers filed new claims for unemployment benefits last week, while the number of people receiving benefits has risen to 6.23 million.

The Labor Department is expected to report Friday that the August unemployment rate rose to 9.5 percent, up from 9.4 percent in July.

Many are scrambling to find work before they have to reach for the next layer of government aid — food stamps or even welfare.

On a recent day in Jacksonville, Money attended a church-run job fair in a half-vacant shopping mall. Most of the vendors were vocational schools trolling for students, or recruiters for the military and fast food joints.

Money, who was laid off from a printing business, said he'll do anything for a paycheck.

"I'm tired of not working," he sighed. "I just can't sit at home anymore."

People who lost white-collar jobs seem most surprised by the dire circumstances they are finding themselves in as unemployment benefits dry up. Before the recession and financial crisis, it had always been easy for them to find work.

Clifford Sheffield, 43, of Fernandina Beach, Fla., used to earn $2,000 a week as an analyst for Merrill Lynch's Jacksonville office.

Today, Sheffield lives off of a $1,300 monthly check from the government — and is burning through his savings to keep up with rent. The unemployment benefits run out later this month.

At a recent job fair, he perused applications for Valu Pawn and Taco Bell, but did not fill them out.

"I have family I could fall back on, but it's not very appealing," Sheffield said.

"People are just barely getting by," said Sue Berkowitz, the director of the South Carolina Appleseed Legal Justice Center, an advocacy group that helps the poor with legal issues surrounding rent and mortgage contracts. "When I go down to our food bank, I see a lot of people who never, ever thought that's where they would be."

In the past year, nearly 5.5 million people exhausted their 26 weeks of standard benefits without finding work. The government says the "exhaustion rate" is the highest on records dating from 1972.

Some 3.4 million people now depend upon extended benefits approved by Congress lasting anywhere from 20 weeks to a year — the longest period of extensions ever added.

The length of these extensions vary by state, depending on the unemployment rate. More than half of all states have unemployment rates that triggered 53 weeks of extended benefits.

The government does not track how many jobless Americans have exhausted both their standard and extended benefits, but experts estimate the figure to be nearly 100,000 — and rising.

According to the National Employment Law Project, more than 402,000 Americans will exhaust their unemployment benefits by the end of September. That figure will more than triple by the end of December unless Congress — or individual states — authorizes another extension.

Legislation has been introduced to provide an additional 13 weeks of unemployment benefits in states with high jobless rates; the bill, introduced by Rep. Jim McDermott, D-Wash., has 23 co-sponsors, including two Republicans.

Unemployment benefits play an important part in stabilizing the economy because recipients tend to spend their weekly checks, rather than saving the money or paying down debt.

"It's definitely a valuable component of economic stimulus," said Alan Auerbach, a professor of economics at the University of California, Berkeley.

Rudolf Augustine, a 39-year-old former construction worker from Miami, is one of about 16,000 Floridians who have exhausted all their benefits. Out of work for the past two years, Augustine's last unemployment check came in August.

He's doing handyman-type jobs, living with his brother to save money, and had to borrow just to visit his oldest daughter in New York to see her graduate from high school.

Augustine's self-esteem is bruised from the lack of cash.

"I used to drive a Saab turbo," he said. "Now I drive a clunker a friend gave me for free."

Still, he says he has something to look forward to: a business degree, which he should receive in about a year. He spends time with his youngest child in the park for fun and occasionally visits Burger King for a treat.

Trying to maintain a good attitude is key, said Mike Allen of Riverside County, Calif., who received about 13 weeks of unemployment benefits earlier in the year. He wasn't eligible for more because he owned his own business and didn't pay enough into the state's unemployment fund to qualify him for more assistance.

Allen, who is 41, moved his wife and 15-year-old daughter into his parents' home in early August.

"They've got a small house," Allen said. "But it's a roof. We'll help out with food."

After their mortgage company refused to work with them on a loan refinancing, the family walked away from their home, which is several hundred thousand dollars underwater. Allen, formerly the owner of a trucking company, owes about $500,000 in business loans. He's traded in his newer cars for a used Jeep that needs $2,400 of repairs. The family sold most of their furniture.

His one bright spot: Allen has launched two employment-related Web sites in hopes of generating money through online advertising.

"We don't dwell on the past," said Allen, who added that his Christian faith is seeing them through. "We can't change it. We can only change our future."

Sheffield, the former Merrill Lynch analyst, said he has some job leads and is beginning a retraining program to become a radiographer. He's done some odd jobs around his neighborhood for cash, and has cut back on most of his expenses — even his $25 a week comic book hobby.

"I don't drink or smoke, and I can't go to lunch or anything like I used to with my friends," said Sheffield, who runs on the beach to relieve stress. "I eat less. I've lost 20 pounds."

[pw08-2009]

The ones who should be cut off first are the illegal immigrants who use welfare and government assistance as a way of life. American citizens who pay taxes or want to work, but can't need that assistance first.

[payasyougo]

Jobless Benefits to Expire for 1.3 Million
---------
The current administration and their friends in the media can market the resultant drop in unemployment claims as a sign of "improvement" in the economy. Biden can claim the "See, the stimulus is working".

How to turn bad behavior in four real estate markets into a multi-year national recession. The greatest fleecing of the endless taxpayer piggybank continues. Bailouts (under both administrations) extended what would have been about 4 months of absolute chaos into something congress could manage (and milk).

Government is not in a recession.
Goldman Sachs is not feeling the recession.

[whatdableep]

I am sure the the Republicans will lead the way in with full support in extending benefits to them!

[hermitdave]

Just what would you expect after 8 years of corruption where only a select group of top companies worked hand in hand with the Cheney crime family to steal as much money as possible. Two illegal but very expensive wars where the military industrial media complex made billions. The republicans allowed the foundation of America to crumble as the super rich got richer and the middle class joined the poor class. Every problem the country now has can be traced to the planners of the election fraud of 1999 and the events of 9/11/01. Just what this secret group of evil doers master plan is, is anyone's guess. For sure it is going to be a rough few years for most Americans. Comfortable years for the planners and their rich friends. It is possible that the republican businessman's dream will come true and America will return to child and slave labor.

[fariborzzak]

this is GOD revenge

[fariborzzak]

this is GOD revenge,when 1- USA sending 1 million USD daily to Israel to kill Palestine people 2-killing women and kids inIraq and Afghanistan,we had to wait for GOD revenge.

[maiingan]

Countless numbers of Americans run out of unemployment compensation EVERY WEEK. If this story is worth running, it's worth running every week. Most of us never get this kind of press. This country is infected with Social Darwinism: most people think every job loss or non-hire is defensible with respect to the person targeted. Since when did employers become infallible? Myself, I ran out of unemployment compensation years ago; have never been allowed to begin my career, despite a great university education and no crime/drug/mental problems record. It's peremptory job discrimination by unqualified morons. The job I've been doing since spring doesn't pay enough to make ends meet and will end a month from now, and I doubt it will even qualify me for unemployment compensation. And I'm still getting a full ride on Food Stamps. I should be paying lots in income taxes, instead of needing any transfer payments. This country needs a new WPA to END LONG-TERM UNEMPLOYMENT NOW! I've been imploring government representatives all the way up to Prez B.O. to do this, to no avail. If an econometrician could be enlisted to run a model, I'm sure it would show we'd all be better off if long-term unemployment were ended, even if the official unemployment rate remained the same. Consider: if unemployment were distributed equitably, everyone who wanted to be in the workforce would be unemployed for only the percent of each year equal to the official unemployment rate. For example: if the unemployment rate were 10%, everyone would be unemployed for 10% of each year, which would be 5.2 weeks. The first week is unpaid and the rest is covered by unemployment compensation. We could handle this financially. If the media wanted to be part of the solution instead of just exploiting the misery of others, they'd be asking the pols why they're not giving priority to just ending long-term unemployment, before trying to increase the total number of jobs.

[srbelken]

This is the most just and productive solution I have come across. Please continue to implore. I have not been able to get but two responses in all of my job search. Not enough to land a job. I have used my maximum benefits and will run out in two weeks.

I have a solid resume, with a stable work history. Only two employers in 15 years. I have a record of continuously increased responsibilities with a constant salary increase over a 15 year period. I held responsibilities only given to competent individuals with a proven record of high ethics. I made continuous improvements properly listed with real estimates of money I saved my employer. Why aren't I getting interviews? This is not special enough to earn a meeting? Aren't these admirable traits for an employee to have? How is it possible that my resume has been discarded entirely. Why do I not receive the courtesy of a response to my application ever? This cannot be that I have worked so hard to have a good work history, only to find It does not matter. I am very interested to hear more from people who do not get responses from high quality resume.

[ubrew12]

As they lose their unemployment, the resulting civil unrest (robberies, rapes, murders, rioting) should finally wake the American people up. This is what Republicans have wanted for 30 years: its why they bankrupted the Federal gov't and put $10 trillion on the Federal debt. So, I guess this is what they are going to get. Good luck, America. You're going to need it.

[maiingan]

Most robberies, rapes, and murders are not committed by people who've run out of unemployment compensation. Would that we could engage in some kind of "civil unrest" to wake the pols up. We should be marching in the streets. We should march on Washington. But most of us can barely afford to gather in our own Congressional Districts. We can't afford lobbyists or campaing donations either. Do any of us believe anything we discuss here will be taken seriously even by the webmasters who run this Comment board? We're just spitting into the wind.

[STBY21]

by ubrew12 September 4, 2009 12:50 AM EDT
As they lose their unemployment, the resulting civil unrest (robberies, rapes, murders, rioting) should finally wake the American people up. This is what Republicans have wanted for 30 years: its why they bankrupted the Federal gov't and put $10 trillion on the Federal debt. So, I guess this is what they are going to get. Good luck, America. You're going to need it.



You must be an accountant because you sure are creative with numbers. Did you by chance work at Enron?

Obama's own numbers show that the money he is spending now will have a higher deficit every year for 10 consecutive years (meaning his term and 3/4ths of the next President's terms) than Bush's highest year.

Every year he will add more to the debt than Bush did in his highest year and those numbers are predicated on some type of recovery in 2010.

The more I read about the recovery, the more it seems to be a hiccup that will bottom out again. I think we will drop back down a little and then finally start climbing out.

This cycle will continue though, because you will not be able to spend your way out of debt and it will either need to be controlled or we will inflate the economy and devalue the dollar until it is worth less than the paper it is made out of.

That's why a penny is now worth less than it costs to make.

[inketolstoy]

30 years for those underachieveing repiglicans to bury us in 10 trillion in debt. Obama and his democratic congress will surpass that in just four years. Once the unrest begins we will be begging them to send in the troops and instal martial law. WHo needs luck when you've got politics.

[rhs648]

correction

Bush is gone. Obama is in charge. For all of the unemployment, there are many people earning a lot of money. At any time in history, there are people making money. Julius Caesar's father-in-law had a home that spanned several acres. Even then, there were wealthy people. Instead of moaning about how bad things are, go out and work for your fortunes. You will never get rich living on unemployment. The year I graduated college, there were three college graduates for every job available. Some of my classmates decided to go to graduate school because the job market was so poor. Many of them became successful doctors, lawyers, engineers, and scientists. Who do you think had the last laugh?

[rhs648]

Bush is gone. Obama is in charge. For all of the unemployment, there are maany people earning a lot of money. At any time in history, there are people making money. Julius Caesar's father-in-law had a home that spanned several acres. Even then, there were wealthy people. Instead of moaning about how bad things are, go out and work for your fortunes. You will never get rich living on unemployment. The year I graduated college, there were three college graduates for every job available. Some of my classmates decided to go to graduate school because the job market was so poor. Many of them became successful doctors, lawyers, engineers, and scientists. Who do you think had the last laugh?

[curse914]

You are implying that Julius Caesar's father-in-law worked for that "several acres" residence. Your argument crumbles, if your inference is incorrect. 70 percent of jobs are acquired via acquaintance or family. Given those statistics, it would be interesting to do a study on the qualifications of those working within that 70 percent.

[underdogus09]

WASHINGTON (Reuters) - More than 35 million Americans received food stamps.................................35 million!!!The numbers you see today are going to increase. Why? Because jobs, good jobs are almost impossible to find. What these food stamp lines are saying is, the government has to shell out money they do not have to keep supporting all these people...

[rightbehind]

It is true about good jobs disappearing. republican ideology has sent most of those overseas so stockholders can take advantage of desperation in third world countries. As for the food stamp estimate highly doubtful it's that high unless you are talking about states that are mostly republican. This nation has an estimate of 300 million for its population. By your number of 35 million it would indicate that 1 out of every 10 people would be on food stamps. I can't say I know anyone right now that is on food stamps.

[underdogus09]

America got what it deserved - the seeds of its own destruction..

[rightbehind]

Are you talking about when republicans gain control?

[ROBACA]

And where are you? No, America has not gotten what it deserves. Government sticks its nose into everything and still nothing is better. Where are all the jobs the stimulus promised? I have not heard of one single one. People are going to become more desparate and then the chaos will really begin.

[Acontradiction]

no jobs because no one is buying..no one is buying because they dont have money..they dont have money because obama gave it to the wrong people..

soon enough the people who voted for obama would be the same to lynch him..

change we can believe in

[rightbehind]

Highly doubtful. This President is doing all he can to put people back to work. What you see are the results of reaganomics the race to the bottom. It always happens in this order, cause and effect. republicans either don't understand or refuse to understand but it works like this. You turn the light switch off the room goes dark. You want to undo the republican damage you vote the democrats in. Simple stuff really.

[rightbehind]

They need to help the unemployed. I would broadcast it loud and clear to those republican states that refused help. They would rather protect a failed ideology than to help their constituents. Could be an uprising in the south but not like republicans expect. 18 more republican senate seats on the ballot in 2010. Just 14 months away!

[TheVarsityClub]

I think it was Ike that said, "Don't put to much faith in your elected officials." I've always liked that quote, for within it is the answer.

Rumor around the water cooler is, there are bank notes on a boat load of commercial property that are going to start coming due within the year. This could dramatically effect the current unemployment rate in a negative way. But what do I know, I try to stay positive, do something nice everyday for someone that holds no place in my heart and try to believe smarter minds will calm the waters.

[LCCLYDE]

Obama has had 8 months to Bushes 8 years I cant see the logic in blaming Obama.Bush had a lot to do with the problem along with the Republican ideology.Personally I did the best I ever have in my life while Clinton was in office .Now I am on welfare.

[PrepareToBeHired]

These reports mean even more pressure to the person out of work, many who are already feeling down. It's up to the individual to be a better job seeker and spend some time learning how to stand out among everyone else competing for the same job.

Prepare to be Hired is a new site dedicated to providing video learning classes to give job seekers the knowledge they need to search for jobs, present their skills, and interview successfully in today's technology driven hiring environment.

[puzzler125]

Keep track of the AVERAGE number of hours you work per week. Beware of employers who vary work hours from week to week. For example, I worked at a national company which shall be nameless and my AVERAGE number of work hours kept me from getting unemployment even though I had worked 39.5 hours through the Christmas season!

[misha256]

by YCantWeAllGetAlong September 4, 2009 7:05 AM EDT

Not a single item you have stated denies the possibility that a employer could game the system to avoid paying unemployment compensation.

Quoting a single state law ans applying it nationally another means of producing a deceptive (fabricated) answer.

https://www.dllr.state.md.us/appeals/decisions/8-801.shtml
https://www.dllr.state.md.us/appeals/decisions/cases.shtml

https://www.dllr.state.md.us/appeals/decisions/8-801.shtml

[vietnamwar]

Jobless Benefits to Expire for 1.3 Million

That mean Economy are getting better.....Thank you Biden, Thank you Obama for 3 millions jobs that u promise...

[rightbehind]

This president has inherited a mess.

[STBY21]

by rightbehind September 3, 2009 10:58 PM EDT
This president has inherited a mess.



And made it worse.

[start99]

No one is keeping count of hiring...I wonder why...its all about unemployed!!