podesta_email_04312.txt

podesta-emails 926 words email

D3 D4 V12

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Attached and on CEA’s website (http://www.whitehouse.gov/sites/default/files/docs/uireport-2013-12-4.pdf) is a report released today outlining the economic benefits of extending emergency unemployment compensation. Pasted below is our blog post summarizing the report’s findings. New Report: The Economic Benefits of Extending Unemployment Insurance By: Jason Furman and Betsey Stevenson The United States economy continues to recover from the worst economic crisis since the Great Depression, and while substantial progress has been made, more work remains to boost economic growth and speed job creation. Despite ten consecutive quarters of GDP growth and 7.8 million private sector jobs added since early 2010, the unemployment rate is unacceptably high at 7.3 percent, and far too many families are still struggling to regain the foothold they had prior to the crisis. The Emergency Unemployment Compensation (EUC) program authorized by Congress in 2008 has provided crucial support to the economy and to millions of Americans who lost jobs through no fault of their own. Under current law, EUC will end on December 28, 2013[1]. This report<http://www.whitehouse.gov/sites/default/files/docs/uireport-2013-12-4.pdf> argues that allowing EUC to expire would be harmful to millions of workers and their families, counterproductive to the economic recovery, and unprecedented in the context of previous extensions to earlier unemployment insurance programs. Since their inception in 2008, extended unemployment insurance (UI) benefits have provided critical support to millions of workers and their families: · Nearly 24 million workers have received extended UI benefits · Recipients are a diverse group: roughly half have completed at least some college, including 4.8 million with bachelor’s degrees or higher · Including workers’ families, nearly 69 million people have been supported by extended UI benefits, including almost 17 million children · In 2012 alone, UI benefits lifted an estimated 2.5 million people out of poverty Millions of workers stand to lose access to UI benefits if no action is taken: * Approximately 1.3 million workers currently receiving extended UI benefits are set to lose them at the end of the year * 3.6 million additional people will lose access to UI benefits beyond 26 weeks by the end of 2014 · Allowing UI to expire would be damaging to the macro-economy and the labor force: * Failing to extend UI benefits would put a dent in job-seekers’ incomes, reducing demand and costing 240,000 jobs in 2014. * Estimates from the Congressional Budget Office and JP Morgan suggest that without an extension of EUC GDP will be .2 to .4 percentage points lower. * In 2011, CBO found that aid to the unemployed is among the policies with “the largest effects on output and employment per dollar of budgetary cost” * In over a dozen studies, economists have found that any disincentive to find new work that could result from extended UI benefits is, at most, small * Expiration of extended UI benefits may also lead some long-term unemployed to stop looking for work and leave the labor force, reducing the number who could eventually find jobs as the economy heals Allowing EUC to expire would be unprecedented in the context of previous extensions to earlier unemployment insurance programs: * The unemployment rate (7.3% in October) is currently higher than it was at the expiration of any previous extended UI benefits program * The long-term unemployment rate (2.6% in October) is at least twice as high as it was at the expiration of every previous extended UI benefits program * In this cycle, EUC was first signed into law in June 2008 by President Bush when the unemployment rate was 5.6 percent and the average duration of unemployment was 17.1 weeks. Today, as of October 2013, the unemployment rate is 7.3 percent and the average duration of unemployment is 36.1 weeks. * Consistent with previous programs, the EUC program has been gradually phasing down – the median number of weeks one can receive benefits across states is down from a peak of 53 weeks in 2010 to 28 weeks currently and phasing down to 14 weeks under the proposed extension The effects of allowing EUC benefits to expire would be felt nationwide: Job-seekers who will lose access to EUC benefits can be found in nearly every state. State Unemployed losing access to benefits State Unemployed losing access to benefits Alabama 48,100 Nebraska 16,700 Alaska 23,300 Nevada 60,300 Arizona 67,000 New Hampshire 8,500 Arkansas 40,300 New Jersey 260,100 California 836,100 New Mexico 25,500 Colorado 72,800 New York 383,000 Connecticut 85,100 North Carolina 0 Delaware 13,800 North Dakota 7,900 District of Columbia 18,200 Ohio 128,600 Florida 260,400 Oklahoma 33,000 Georgia 164,700 Oregon 76,100 Hawaii 13,300 Pennsylvania 262,500 Idaho 20,300 Puerto Rico 80,200 Illinois 230,500 Rhode Island 21,700 Indiana 69,300 South Carolina 52,400 Iowa 35,500 South Dakota 1,600 Kansas 35,300 Tennessee 79,000 Kentucky 53,200 Texas 285,200 Louisiana 30,400 Utah 20,200 Maine 18,100 Vermont 5,100 Maryland 82,600 Virgin Islands 3,500 Massachusetts 141,000 Virginia 69,900 Michigan 189,700 Washington 94,100 Minnesota 65,500 West Virginia 24,700 Mississippi 37,600 Wisconsin 99,000 Missouri 84,500 Wyoming 6,700 Montana 14,300 Source: Department of Labor