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99ers Crisis About to Get Much Worse

December 14, 2010 - by Donny Shaw

I’ve been trying to make the point that the 99er problem — people exhausting all unemployment benefits without finding a job — is about to get much worse because we’re approaching 99 weeks from the brunt of the recession unemployment spike. Congress is not planning to add more weeks of unemployment benefits and the Federal Reserve is projecting the unemployment rate to stay pretty much where it is for the next year. Putting it all together, this means that for the foreseeable future, there will no jobs and no government support for the millions of 99ers.

This graph from Calculated Risk showing three years of job losses makes it very clear — millions of people who lost their jobs in the deepest part of the recession are about to be dropped off a cliff:

Adding insult to injury, 99ers are not even tracked by the government. The way the employment statistics system works, when people go off of unemployment, they are not considered part of the work force and not factored into the numbers for employed or unemployed. This is why we have no firm number of 99ers, and why it’s so easy for policymakers to ignore this crisis.

Expect homelessness, the suicide rate, and despeartion-related crimes to spike. And remember to look at this when the consumer recovery doesn’t turn out as rosy as expected over the next couple years.

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Comments

Displaying 31-60 of 144 total comments.

  • Comm_reply
    beenblue 12/14/2010 3:00pm

    WHAT`S FICA ?, GEEZ I WISH YOU GUY`S ENGAGED YOUR BRAINS, BEFORE YOU OPEN YOUR MOUTHS. DO YOURSELF A FAVOR AND GOOGLE FICA. DOES`NT SARAH PALIN HAVE A SITE FOR YOU GUYS TO CRUZ. I`M SURE SHE HAS PLENTY OF INTERESTING READING FOR THE CHALLENGED.

  • Comm_reply
    quitwhining 12/14/2010 4:30pm

    Speaking of engaging your brain “does’nt” EMPLOYEES DONT CONTRIBUTE TO UI TAXES. THEY NEVER PAY A CENT TO IT!

  • Comm_reply
    webrown91 12/14/2010 7:00pm

    Except California – employee SDI contributes to the unemployment/disability funds.

  • Comm_reply
    Abaratarrr 12/14/2010 8:38pm

    quitwhining,

    please explain to me how you can get 10 cars into your 2 car garage,

    at this point there are more than 5 people looking for work for every job available in the united states, how do you get five people hired when only one job is available.

    I will quit whining when you can explain how you park 10 cars in your two car garage.

  • Comm_reply
    byand4thepeople 12/15/2010 4:22am

    You know what quitwhinning you got the fact that FUTA is paid by the employer right.
    But they only pay $434 per employee making $7000. (6.2% of the first $7000)
    By my estimates using workforce estimate of 230 employees that would mean 99 BILLION DOLLARS have been collected every year. Multiply that by 10 years of low unemployment.
    Since unemployment was low until 2008 there is plenty of money for an extension of benefits to the 99er’s.
    It’s not that we want to blame or point fingers at anyone, we want to work, we need to work, there are just no jobs to be found regardless of our “standards”.

  • Comm_reply
    Abaratarrr 12/15/2010 6:01pm

    futa is used for administration costs not benefits, it pays the salaries and water bills at the unemployment offices.

  • Comm_reply
    adinalynn 12/15/2010 1:30pm

    Take any job you can? My husband was laid off 2 years ago and has been looking for a job ever since. That includes McDonald’s, dishwashing, anything to get a job. And everyday the answer is still no job openings. And everyday he is back out there trying again. He even tried to get a paper route. Believe me it’s not from lack of trying. There is just no jobs. And if unemployment extensions are not extended there will be even less jobs. Maybe your right and it won’t solve anything, but tell that to my husband when we lose our home because we can’t afford the bills. Take any job? He would love to.

  • Comm_reply
    cszalai 12/15/2010 2:31pm

    Ok i got a job in fact i got 2 plus i am attending college full time i have a wife that works and 3 kids….. one job pay minimum wage and the other just above but it is only a 12hr rec….. i don’t even make enough to disqualify myself from unemployment…. also you said a job any job well how are we all to do that when in Michigan were i am for every vacant job out there, there are 5 people applying for it so even if every job got filled tomorrow the unemployment rate would only drop by 1/5th what it is now…. I went from $800wk working to about that every two weeks and when unemployment runs out (if it hasn’t already because of the cut off on Nov 30) in January i will drop to $600mth….. Ok so i got two jobs i am educating myself to get into a growing field) i graduate in June of 2012 with an associate degree…. but here’s the biggest problem NO

  • Comm_reply
    cszalai 12/15/2010 2:32pm

    EXPERIENCE!!! As i said i live in Michigan i got rid of my 2006 dodge ram a long time ago my wife drives a older dodge and i drive a 94 bronco….. with a 1000mth house pmt and living in a cold weather area how low do you say i drop my standards… live in the tent sitting in my garage in -30 weather in the park or better yet a family of 5 sleeping in a bronco with the engine idling all night to stay warm, then who is going to hire a homeless educated person, and where am i to take showers? And take care of other personal needs…. by the way my dad moved to Texas, my mom passed, so i have nowhere to go

  • Comm_reply
    cszalai 12/15/2010 2:32pm

    Now for the other side of the coin…. unemployment gets extended i keep my home, when things break and wear out i have some way of getting it (hint why do you think the spending numbers keep going up and down) not things like dishwashers but clothes wearing out, kids outgrowing and wearing out clothes, vehicles breaking down, etc., and i can make myself presentable when i do finally get a job interview
    So you call it scapegoats….. I don’t care who’s fault it is I need to keep money coming in and i don’t care where it comes from as long as it gives me enough money to keep our 5 lives going till i find something to get me and my family on our feet, I’ve paid taxes supporting our government since i was 16yrs old, I’m 43 now. It’s time for me to be helped (and everybody else like me (not the ones sitting around doing nothing but) working extremely hard on getting on my feet to get out of this mess

  • Comm_reply
    Sher1 12/15/2010 3:14pm

    @cszalai: Magnify your ME ME ME reply about 1.5 Million times and we see why those recently unemployed who benefited from HR 4213 2 times, didn’t fight to help the 99ers when they needed it earlier this year and again a few mos ago. As you said selfishly it all about ME ME ME and let the bodies fall. You are one of those folks that would cut the baby in half and I hope your conscience is clear because the extension for those on HR 4213 is not what you believe it to be and you will feel what the 99ers feel sooner than you think.

  • Comm_reply
    cszalai 12/15/2010 5:29pm

    um i am a 99er and i was fighting for the extensions to pass i was even contacted by Debbie Stabenow for my story to take to the house to get the Americans want to work act going (which includes a tier five) I had 3 responses because of a limit on characters basically saying myself like so many others in the us are going to lose everything and up here in these areas where it’s colder it will be a lot harder for everyone. I eve suggested people like myself that are going to college and can verify it should have unlimited unemployment till we get done, and tie it in with the fafsa, and no worker left behind programs to prevent scammers…. no worker left behind requires growing professions, and fafsa requires attendence records from the colleges and almost contintious schooling or the payments stop (you can take summers off and just barely stay in the guidelines to not make payments)

  • UI_For_All 12/14/2010 11:55am

    Idea to help every 99er. Special tier 5, draw UI on Tier 5 until the National rate drops below 7.5%.

    Reasons
    No one is on UI because they want to.
    No one gets rich off UI.
    Every dollar UI puts 1.70 – 2.00 back into economy.
    Reduce burden on other assistance programs. it is gonna cost one way or another
    Getting UI have to keep actively searching for work.
    Gives a more accurate number of Unemployment.
    Keep people off the streets, in homes, food, bills paid.
    US goal get people back to work, People use UI to find work.
    Everyone can have “enough time” to find work during this economic storm.

    If it costs 80 billion for 4 tiers of UI for 13 months and say there is an equal number of 99ers, to the 4 tiers then this system could run for 10 years for same value the top 2% get in Tax breaks for 2 years.

    Stops UI bickering in congress and gets focus creating jobs to get National rate down to stop Special Tier 5.

    Once National rate below 7.5% Special Tier 5 would end 30 days from announcement.

  • Comm_reply
    UI_For_All 12/19/2010 5:37am

    Is Mike Huckabee suggesting part of my idea?
    http://www.rantrave.com/Rant/Huckabee-Offers-a-Tier-5-Unemployment-Extension-Solution.aspx
    BUT….
    Is there enough community hours for 8 – 16 million people every week to do 16 hours each?
    How many hours a week does that total with 16 million people?
    Who is going to TRACK these hours?
    What if someone gets HURT on the job?
    Who decides who gets the free community hours the same guy that is getting those rich tax breaks too?
    Shouldn’t finding the new job be priority one?
    What should be a part of a Tier 5 and what should not ?

  • Moderated Comment

  • Comm_reply
    beenblue 12/14/2010 12:27pm

    TAXIPAYER, Your spelling has improved, when did they let you out?

  • Comm_reply
    TAXPAYER4567 12/14/2010 1:10pm

    TOO BAD YOUR HASN’T, IF YOU COPIED AND PASTED YOU MIGHT GET IT RIGHT!!!!!

  • Comm_reply
    beenblue 12/14/2010 1:31pm

    Only a couple of goofs that time, good for you !! Remember (keep trying)

  • beenblue 12/14/2010 12:15pm

    Weird, the White House say`s there is nothing more they can do for the unemployed, and at the same time increase our debt 900 billion as a gift to the wealthy (MERRY CHRISTMAS). Right now the senate is talking about having to cut spending in the near future to make up for, what their doing now. When they cut spending do you suppose that they`ll cut anything that the rich receive, or what remains as a life support for the common man ie. social security, medicare, medicaid, healthcare, no child left behind, food stamps, welfare, do away with labor laws. In truth are we not looking allot like, what we fought against, and called evil elsewhere in the world ??

  • Comm_reply
    Mahlalie 12/14/2010 12:42pm

    You do realize they aren’t lowering the income tax rates, right? They are keeping them at the same level. You don’t increase debt by not taking more money; you increase debt by spending more money than you take.

  • Comm_reply
    beenblue 12/14/2010 12:59pm

    Yes, I think we all get that, and so the question still stands unanswered, to reduce the debt you will have to raise taxes. And as a patriot, I say it`s time the wealthy carried some of the load that they have been spared while amassing their wealth, while giving the middle class a tax break.

  • Comm_reply
    Mahlalie 12/14/2010 1:21pm

    No, you decrease debt by spending less than you take. The wealthy already pay a huge amount of taxes. The top 5% of income earners already pay over half of the income taxes. (source: http://www.taxfoundation.org/files/fed_indincome_allcharts-20101005.swf page 4) Also, doing away with labor laws is not a spending cut.

  • Comm_reply
    beenblue 12/14/2010 1:42pm

    Doing away with labor laws does increase the bottom line, if you own the company. And where do you think the spending cuts will come from ?

  • Comm_reply
    Mahlalie 12/14/2010 1:57pm

    So your basically refusing to back up your claim that doing away with labor laws amounts to a government spending cut?

    Well, the spending cuts will probably come from nowhere, because Congress doesn’t have the guts to cut spending. We could start with welfare reform, though. You know, things like medicare, social security, unemployment benefits. There must be a cheaper safety net. Congressman Paul Ryan’s Roadmap For America’s Future makes some good proposals (americanroadmap.org). Doing away with unconstitutional government agencies (which is to say all government agencies) would be a nice addition.

  • Comm_reply
    beenblue 12/14/2010 2:14pm

    No, I`m saying that the Gov`t will oversee the abandonment of unions, and minimum wages, so as to increase the bottom line for the corporations that have a stranglehold on the nation, and further wish to improve their bottom line, while no longer affording any benefits to the employee except long hours and low pay.

  • Comm_reply
    Mahlalie 12/14/2010 2:45pm

    Although I think unions and minimum wage laws have outlived their usefulness, I don’t see them ever leaving. There just isn’t the public support for it, and Congress and the President would be crucified.

    Incidentally, I find it curious that you want to take money away from job creators to pay for benefits for people who aren’t working. Do you realize the employment implications of cutting into a company’s income?

  • Comm_reply
    beenblue 12/14/2010 3:02pm

    YEP.

  • Comm_reply
    Mahlalie 12/14/2010 3:14pm

    So you don’t really care about people working. You just want people to get free money while screwing over successful people for being successful. That’s what I’m hearing here.

  • Comm_reply
    beenblue 12/14/2010 3:45pm

    NOPE, YOUR LOOKING FOR AN ARGUMENT, WHERE I DON`T FEEL COMPELLED TO GIVE YOU AN UNDERSTANDING. UNLIKE YOU, I WAS A BUSINESS OWNER AND WILL BE AGAIN, SO PLEASE DON`T TRY TO SCHOOL ME ON HOW TO CARE ABOUT THE SUCCESSFUL, AND THE WORKING CLASS, UNTIL YOU OWN YOUR OWN BUSINESS, AND CARE FOR EMPLOYEES AS THE BACK BONE OF YOUR COMPANY, YOUR JUST GUESSING.

  • Comm_reply
    Mahlalie 12/14/2010 3:57pm

    See, the thing is my dad owns his own business. He has for decades. It’s not wildly successful; in fact, it’s barely keeping its head above water right now. I grew up around that, and I’ve majored in business administration. I get it. I’ve done a lot of research into owning a business as I plan to start one some day. Moreover, my dad agrees with everything I’ve stated here. You are not only arguing with me; you are essentially aruing with a small business owner.

    I assumed that your affirmative answer to my question meant that you were okay with people being laid off as long as taxes go up. That was your original argument, that taxes should be raised. Pardon the misunderstanding.

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