Federal extension for unemployment – Update 6/19/2010
by Chris – unemployment-tips.com
Another week has gone by and still the senate has not passed another Federal Unemployment Extension according to this blog post at OpenCongress.org
I can’t say that I am surprised. Even the Federal fund from which loans to insolvent state funds are made is itself insolvent.
The Feds have been borrowing money and loaning it to states to keep state funds afloat and have been loaning it to them interest free.
The problem of replenishing funds and paying back the loans will ultimately fall on the shoulders of those who fund the unemployment program .. employers. Typically, funds are replenished when the unemployment rates falls and everyone goes back to work in newly created jobs.
But this is not happening .. we hear the unemployment rate is dropping or at least holding steady .. but without reform of the system, I think higher wage bases and higher unemployment tax rates on the wage base will be the only answer.
This can only hurt any momentum for new job creation.
Although I do not fully understand how unemployment extensions work when you need them .. I fully, understand the concept of not having enough money to pay the bills.
I also understand that extensions can become a deterrent to new job creation just like being on unemployment makes you think twice about what you can live without when it comes time to buy something .. like .. um .. groceries.
My personal opinion is that the non-existent money spent on extensions is being unwisely used.
The jobs that are being created demand a higher skill level. At some point, I believe there should have been a change in what is required of an unemployed person to be able to get an extension .. I’m talking about school.
There is a shortage of people with skills to fill the jobs that are being created .. yet unemployment departments regularly deny or make it nearly impossible to collect unemployment and attend school unless you jump through a series of hoops.
All because you must be able and available and seeking suitable work while on unemployment .. but there are no jobs to be had .. so why deter people from gaining the education and skills so they can grab what’s out there .. or use their education to become an employer or start a business that supports themselves and their family.
Talk to me.
Do you have thoughts or ideas about the problem that has affected ALL Americans?
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