News for Unemployment Benefits

Check out this great video - News for Unemployment Benefits-States bear the full cost of paying the first 26 weeks of unemployment benefits to laid-off workers. (The federal unemployment insurance funding provided under the Recovery Act covers additional weeks of benefits for workers whose state-funded benefits run out before they find a job.) Because the economic downturn has been so long — this recession was the longest since the Great Depression, and because a number of states did not amass adequate trust fund reserves before the recession hit, state UI trust funds have been depleted in 34 states. To continue paying unemployment benefits, these states must borrow from the federal unemployment insurance trust fund.To date, these 34 states have borrowed a total of $41 billion. With unemployment remaining near double-digit levels and projected to remain high for a considerable period to come, the Labor Department has projected that 40 states ultimately will have to borrow, with the total amount borrowed reaching $90 billion by 2013. Recognizing the adverse economic effects of raising taxes on employers, federal lawmakers enacted a Moratorium on these interest payments until December 31, 2010 as part of last year's recovery legislation. A Moratorium is a suspension of an ongoing or planned activity. The moratorium now needs to be extended. States obligations to begin repaying the loan principal pose an even more serious problem over time. Under current law, three states will have payments due this ... What are your comments?

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Keywords: economy, economics, economists, recovery, stimulus, work, jobs, job, creation, obama, democrats, election, statistics, stats, growth, money, economic, meltdown, collapse, crisis, credit, crunch, unemployment, price, controls, recession, depression, Lehman

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