Stabilizing lifeline for New Jersey communities Unemployment insurance ; For millions of unemployed workers across the country, unemployment insurance benefits can make the difference between putting food on the table and being out on the street. With an average weekly benefit check of $304, most recipients still struggle. But at least they can afford the basics in the midst of what can be a lengthy and frustrating search for employment.Last week, Congress failed to extend unemployment benefits before the program expired. The delay has serious consequences. It means that 2 million people will lose their final lifeline this month, and more than 6 million could lose it in the months following. This figure includes 175,000 individuals in the state of New Jersey who rely on these benefits to make ends meet.
For Mays Landing, N.J., resident Darryl Foster, an on-and-off recipient of benefits during the past two years, the assistance is critical. It has provided the means for him, his wife and two children to remain in their home.
Darryl is an unemployed construction worker. He wasn't fired. He didn't quit. Like others in his community, he was a victim of the economic downturn which brought the local construction industry to a near halt. And he is among the 3.3 million people who were able to survive because of federal and state UI benefits.
Darryl's story demonstrates how a few hundred dollars per week in assistance helps workers in between jobs. But, a new study also shows the degree to which these benefits stimulate economic growth and drive economic recovery.
Under the Bush Administration, the Labor Department commissioned an independent study to examine the impact of unemployment insurance on the U.S. economy. The study found that for every dollar spent on unemployment benefits, two dollars in economic activity were generated.
In fact, the economics of unemployment benefits are straightforward. Benefits for the unemployed do not add to long-term deficits because the spending is temporary. To the contrary, they contribute powerfully to economic growth. After all, money put into the pockets of the unemployed is put right back into the local economy.
Instead of being put into savings, the benefits are immediately used for necessities like groceries, gas for the family car and clothes for growing kids. That means the grocer sees money in his register, the gas station keeps its doors open and the children's clothing store can hire extra workers. In other words, when unemployment is 9.8% and our economy is aching for activity, extending unemployment benefits just makes sense.
That's why our government has never cut off unemployment benefits this early in a recovery. Following the 1982 recession — during the Reagan administration — federal benefits were continued through the spring of 1985, after unemployment had fallen to 7.2 percent. There were good reasons to extend the program then, and there are definitely good reasons for it now.
In the midst of political debate, it's too easy to lose sight of the fact that this economy belongs to all of us, whatever our employment status. Helping those who need it most — like Darryl — is not just the right thing to do for them, it helps everyone in America.
Failing to act doesn't just mean failing America's unemployed, it means a devastating blow to the national economy, and to communities in New Jersey and across the nation.
Hilda L. Solis is the U.S. Secretary of Labor http://www.newjerseynewsroom.com/commentary/unemployment-insurance-a-stabilizing-lifeline-for-new-jersey-communities For the latest updates PRESS CTR + D or visit Stock Market news Today
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