“Endless Weeks of False Hope and Promises,” As Jobless Workers Grow Desperate Without Unemployment Benefits

June 18, 2014

A fellow District of Columbia resident writes, “Where to start … the abrupt termination of emergency benefits, or the endless weeks of false hope and promises.

“I have no money to get to interviews…. I also have no money for phone, no money to even keep up my personal hygiene. For over 11 years, I was steadily employed at $40K-$55K, and now I’m soon to be homeless.”

This is one of well over 2,000 stories that struggling jobless workers have shared with the Center for Effective Government.

They speak of selling belongings, including a wedding ring. They speak of living without hot water, having electricity, phone service and/or internet connections cut off — of actually becoming homeless.

And they speak of ongoing, frustrating efforts to find employment — any job at all, some say, though like my fellow District resident, many used to earn a comfortable living.

Meanwhile, House Speaker John Boehner has run the clock out on the stop-gap bill to renew Emergency Unemployment Compensation that the Senate passed in early April.

The bill covered five months of EUC benefits, back-dated to when they expired at the end of last year. So the benefits it provided would have ended more than three weeks ago.

Supporters had hoped that the bill would buy time for negotiations on a further extension. Surely justified. Notwithstanding newsworthy job growth, there are still nearly 3.4 million people who’ve been job-seeking for more than 27 weeks.

Only two state unemployment insurance programs provide benefits for this long — and none for much longer.

So at this point, more than 3 million have lost their unemployment benefits since EUC expired, as the counter House Ways and Means Democrats have posted. Look at the numbers roll — about one more worker cut off every 8 seconds, 72,000 or so a week.

Well, I don’t suppose I need to convince you of the mounting crisis — not only for jobless workers themselves, but for their families.

The question is, what will convince Speaker Boehner to let the House vote on an EUC bill? Not apparently some bipartisan job-creating measures to go with it, since he shrugged off the Secretary of Labor’s invitation to discuss what those might be.

The campaign I wrote about earlier hasn’t let up. We’ve been tweeting House Republicans weekly, urging them to tell their leader it’s time — past time actually — for a vote.

Not only the Center for Effective Government, but House Ways and Means Democrats have been collecting stories — many begging Congress for help.

Last Wednesday marked a new phase in the campaign — the first of what will be seven weekly events on the grassy triangle in front of the House side of the Capitol.

Witness Wednesdays they’re called because they center on readings of stories collected — all participants bearing witness to the suffering of our fellow Americans, who, as one of them says, are “swimming as hard as … [they] can, yet … still drowning.”

I joined the crowd for the first event. It was a heart-wrenching — and at the same time, rousing — experience, as you can see.

Thankfully, the organizers and the many other groups supporting the cause aren’t counting on touching Boehner’s heart — or if you prefer, pricking his conscience. Nor, I think, are they counting on pressure from his colleagues to get a standalone bill on the floor.

We perhaps see a glimpse of the Democrats’ strategy in a recent donnybrook in the Senate. Senator Jack Reed, who’d partnered with Senator Dean Heller to negotiate the five-month EUC bill, planned to attach a year-long renewal to the bill extending expiring tax breaks.

Republicans blocked a substantive vote on the bill because House Majority Leader Harry Reid wouldn’t allow them to add amendments.

But the tax extender bill is one of those so-called must-pass pieces of legislation. And there are others — a bill of some sort to avert a government shutdown at the end of the fiscal year, for example, and another to keep funds flowing to road and public transit projects.

So we may see an EUC extension after all. Senators Reed and Heller are reportedly working on a new bill — this time, prospective only. No compensation for benefits already lost, though that might avert some further emergencies.

The challenge again is to find an offset that would satisfy most Democrats and enough Republicans to get the bill — or amendment — passed.

Because we know that Senate Republicans, as well as their House counterparts, will insist the benefits be fully paid for though they’re willing enough to extend tax breaks with no offset whatever.

Meanwhile, the clock is ticking — and the number of jobless workers with no source of cash income rising. Members of Congress will go home in about six weeks and stay there until after Labor Day.

So even if EUC is ultimately resurrected, jobless workers who’ve already said they’re facing foreclosure or eviction may be homeless. And who knows how many more will find their job searches frustrated because they can’t afford gas or public transportation to get to interviews?

This is all so pathetically unnecessary. No wonder that two-thirds of American voters have a higher opinion of lice than of Congress.


Census Bureau Reports 16.1% Poverty Rate

November 15, 2012

Another round of news on poverty in the U.S. — this time from the Census Bureau’s latest report on the results of analyses using its Supplemental Poverty Measure.

Once again, the national poverty rate is higher than the rate the Bureau earlier reported, using its official measure — 16.1%, as compared to 15.1%.

In other words, about 3 million more people — a total of nearly 49.7 million — were living in poverty last year.

On the other hand, the percent of people living in extreme poverty, i.e., below 50% of the applicable threshold, is 1.5% lower than the official measure shows.

We get a mixed picture for state-level poverty rates, for which the Bureau uses three-year averages. Some of the rates are higher than the official rate. Some lower.

The rate for the District of Columbia rises sharply — from 19% to 23.2%. This is higher than the rate for any state except California.

As I’ve written before, the official measure sets poverty thresholds at three times the annually adjusted costs of what used to be the U.S. Department of Agriculture’s cheapest food plan.

The SPM starts from the costs of basic living expenses, adjusted for differences among major geographic areas and also differences in living situations, e.g., renting versus owning.

To these, it adds some other “necessary expenses,” e.g., payroll taxes, health care co-pays and other out-of-pocket costs.

On the other side of the ledger, it takes account of not only cash income, but some “near-money” federal benefits like tax credits and also some in-kind benefits, e.g., food stamps, two forms of child nutrition assistance, housing subsidies.

And it uses actual household size, rather than counting only household members who are related to one another, as the official measure does.

These differences explain not only the difference between the overall SPM rate and the official rate, but shifts in rates for different age and race/ethnicity groups.

We see, for example, that:

  • The child poverty rate drops from 22.3% to 18.1%, reducing the number of children in poverty by about 3 million.
  • The poverty rate for seniors rises from 8.7% to 15.1%, increasing the number of poor people 65 and older by somewhat more than 2.6 million.
  • The poverty rate for blacks drops from 27.8% to 25.7% — still far higher than the non-Hispanic white rate of 11%, but now 2.3% lower than the rate for Hispanics.
  • The poverty rate for Asians rises from 12.3% to 16.9% — the largest percent change for any race/ethnicity group reported.
  • For children, the extreme poverty rate is less than half what it is under the official measure — 5.1%, as compared to 10.3%.
  • For seniors, however, the extreme poverty rate rises — from 2.3% to 4.3%.

This year’s report is unusually timely because it gives us a read on the anti-poverty effects of some benefits that are at immediate risk. It tells us that:

  • Food stamp benefits lifted more than 4.6 million people, including  about 2.1 million children, out of poverty last year.
  • Well over 8.6 million more people, including nearly 4.7 million children, would have fallen below the poverty threshold if their family’s disposable income hadn’t been boosted by refundable tax credits.
  • Unemployment insurance benefits kept nearly 3.4 million people out of poverty — mostly adults, but about 963,400 children too.
  • And Social Security — the single most effective anti-poverty program we’ve got — accounted for 25.6 million fewer poor people than there would have been without its benefits. Poverty rates for all age groups would have been higher. The rate for seniors would have soared to 54.1%.

So there are the benefits. Now here are the risks.

The farm bills now pending in Congress would cut food stamp benefits for at least half a million households — 1.3 million if the House version prevails. The House bill would also mean no more food stamps at all for as many as 3 million people.

As you’re well aware, the Bush-era tax cuts are expiring. We can be quite confident that most will be renewed.

But Congressional Republicans want to extend earlier versions of the refundable Earned Income Tax Credit and Child Tax Credit, not the expanded versions that have made a significant difference to low-income working families.

The federal program that funds unemployment insurance benefits for longer-term jobless workers will also soon expire. Some two million workers and their families may face the new year with no source of cash income.

Lead Republicans in Congress are about to sit at the bargaining table with their Democratic counterparts and White House officials to thrash out an alternative to the so-called fiscal cliff.

They say they’ll be amenable to increased revenues (not to be confused with higher tax rates for the wealthiest 2%).

But the deal must also include “real changes to the financial structure of entitlement programs” — apparently something along the lines of the recommendations in the plan produced by the co-chairs of the President’s fiscal commission, a.k.a. Bowles-Simpson.

These recommendations would cut Social Security retirement benefits in several different ways. With the average benefit now only $1,230 a month, we could see more seniors in poverty if the Democrats don’t hold firm to the position they’re taking now.

NOTE: A couple of the benefits impact figures reported by the Center on Budget and Policy Priorities are a bit higher than mine. This is also true for figures reported by the Center for American Progress. I’m at a loss to explain the discrepancies.


Extending Unemployment Benefits Won’t Help All Jobless Workers

August 24, 2012

Looking back on my post about the expiring federal unemployment insurance benefits, I realized I’d left out important parts of the picture.

One is the growing number of workers who’ve been jobless more than 99 weeks — longer than the maximum for benefits even when both federal programs were in full force.

The other is that lots of workers who lose their jobs through no fault of their own can’t get UI benefits at all.

In 2010, for example, only 44% of these workers got any benefits from their state programs, according to a recent brief from the Urban Institute.

The brief documents what we probably would have guessed. A very high percentage of the left-out workers are “disadvantaged,” e.g., blacks and Hispanics, single mothers, teens and young adults.

Both blacks and Hispanics are also unusually likely to be among the long-term unemployed, another Institute brief tells us.

We know from other sources that single mothers were far more likely to be jobless and actively looking for work last year than married mothers — or the labor force as a whole. This was also true for the 16-24 year old age group.

The disadvantaged workers are less likely than others to get UI benefits because states have eligibility rules that tend to exclude them.

These, in some cases, are related to the workers’ disadvantages in the labor market.

Virtually all states, for example, have minimum earnings requirements. The time period they use varies, but the earnings threshold will always disadvantage low-wage workers whose jobs weren’t ongoing and full-time.

Workers who got jobs through temporary agencies are often out of luck — even if they put in a full day, every day.

Only 22 states will provide benefits for workers who have to quit for reasons most of us would find compelling, i.e., domestic violence, the need to care for a sick or disabled family member.*

Not surprisingly, single mothers seem to fall into this group, though the Institute’s report isn’t altogether clear on this.

Many are also left out in the 23 states that won’t provide benefits for workers who are looking for a new job that isn’t full time. We know anecdotally that single mothers may have no alternative because they can’t afford the high costs of child care.

The Recovery Act gave states a financial incentive to eliminate such barriers in their UI programs.

Thirty-nine states and the District of Columbia adopted the first and only partial payment option — or already had it on the books.

But only 34 states and the District took the minimum three actions that netted them the full amount they could receive.

Just one and the District went for the fully battery. Still barriers for disadvantaged workers in both jurisdictions, however.

Some states have since tightened up their requirements — this rather than raise the imprudently low UI taxes they’d decided to collect from employers.

The end result is a patchwork of coverage.

But there are only five states in which more than half of all jobless workers got UI benefits in 2010. And only one — Alaska — where the rate topped 60%.

* Eleven other states will provide benefits for workers who quit because of domestic violence, but not because of a family member’s illness or disability.


Long-Term Unemployment Benefits Saved, But Scaled Back

February 17, 2012

So the Republicans and Democrats agreed on a deal to extend long-term unemployment insurance benefits — defying predictions of another cliffhanger or worse.

Also extended, as you’ve probably read, were the employee payroll tax cut and the “doc fix” to avert huge cuts in Medicare reimbursements. As you may not have read, some programs for low-income people got a new, temporary lease on life as well.

The UI benefits extension is surely good news for the million or so jobless workers who’d otherwise have lost their benefits in March. Also good news for jobless workers who’d have run through their regular state benefits by year’s end.

No extension would have meant benefits losses for nearly 4.5 million by December — 12,600 in the District of Columbia alone.

Add to the good news column some changes in the UI program that didn’t get into the deal — or survived only in more palatable forms.

The most problematic would have denied benefits to jobless workers without a high school diploma or the equivalent unless they were enrolled in classes leading to same. There’s no such barrier in the final bill.

But (why is there always a but?) the well-known 99 maximum weeks will soon be a thing of the past.

As I wrote awhile ago, the Extended Benefits program kicks in only when states’ unemployment rates are higher than they were during a comparable period in a prior year — and kicks off when they aren’t.

Because Congress didn’t change the law to let states shift their comparison period back, more and more states will “trigger off” EB. The expectation now is that no state — or the District — will be able to offer the final 10 or 20 weeks of benefits by December.

Because Congress did change the law, fewer weeks of benefits will be available under the other federally-funded program — Emergency Unemployment Compensation.

EUC benefits kick in directly after workers have exhausted their regular state unemployment benefits. They’re structured in tiers.

At this point, the first two are available to all jobless workers, giving them a maximum of 34 weeks — less only if they find employment.

Workers qualify for the next tier only if they live in states where the unemployment rate is at least 6%. That nets them 13 more weeks.

If they live in states where the unemployment rate is at least 8.5%, they can move to a fourth tier and get another 6 weeks.

The total then for workers in most states has been 79 weeks — counting the weeks available in their regular state program, but not EB.

The extensions legislation cuts the maximum number of weeks to 73, beginning in September. From June through August, the maximum will remain 79 weeks, but only in states where the unemployment rate is at least 9%.

At the same time, the legislation establishes a minimum 6% unemployment rate for the second tier. And it raises the minimum unemployment rates by half a percent for the remaining tiers.

As of September, the third tier becomes four weeks shorter and the fourth, final tier four weeks longer.

Bottom line is that, as of September, only 63 weeks will be available in most states. At this point, jobless workers have more weeks available in all but seven.

I suppose we should be grateful. The Republicans reportedly wanted to cap benefits at 59 weeks, as the original House bill would have.

So the Democrats got more than a strict split-the-difference deal, though only because they’d already followed the Obama administration’s lead in letting states trigger off while their unemployment rates remain abnormally high.

Even here, they negotiated a temporary fix, giving states with unemployment rates of at least 8.5% an additional 10 weeks of EUC if they’ve no EB weeks to provide. The boost is good only through May, however.

Huffington Post blogger Arthur Delaney reports that it will benefit jobless workers in at least 10 states.

I’d be remiss if I didn’t note another Democrat victory here. The estimated $30 billion the UI benefits extension will cost won’t be offset by any tampering with the Child Tax Credit.

If House Republicans had had their way, refunds that help support more than five million low-income children would have been part of the pay-for.

So it’s not a perfect deal. But a deal got made. And it’s a whole lot better than the extension the House passed in December.

UPDATE: After I (hastily) posted this, I found that the Center on Budget and Policy Priorities had created two tables that lay out the changes in the EUC program and the total weeks of benefits that will be available, with and without EB. A clearer picture of the complex end results than my prose could manage.


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