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Unemployment Insurance Cuts in the Latest Deal

February 15, 2012 - by Donny Shaw

It’s not official yet, but it appears that Democrats and Republicans in Congress are on the verge of striking a deal on extending the payroll tax holiday and unemployment insurance benefits. While the payroll tax holiday would be continued in its current form under the deal, the policies governing extended unemployment insurance for the would change significantly.

Under the deal, long-term unemployed workers in most states would see their maximum length of benefits restricted, and they may face new drug testing and job retraining requirements to continue receiving benefits. Here are the details of the the deal as it currently stands, according to an outline obtained by CNN:

UNEMPLOYMENT BENEFITS

  • Extends current levels and length of unemployment benefits through May. After that maximum lengths of benefits decrease in steps.
  • On Sept. 1, max. unemployment benefits would fall to 73 weeks in the highest unemployment states. (GOP source says that’s 9% unemployment or more.)
  • On Sept. 1, unemployment benefits would drop to 63 weeks in states with average unemployment.
  • Drug testing: Republicans say the deal would allow states to drug test unemployment beneficiaries if a) they are unemployed because of a failed or refused drug test or b) if they are applying for jobs that require drug testing.
  • Long-term unemployed: would have to go through a “reemployment assessment”, according to Republicans. This would assess what skills and services they need to be hired and require that they participate in recommended programs.
  • Job search requirements: Republicans say the deal would issue a first set of “national job search requirements” for those receiving unemployment benefits. We are waiting for details on what that means.

These cuts will likely start to take effect while the average duration of unemployment is still at a historically high level. The details are not yet final, but it looks like the maximum length of unemployment insurance benefits will be reduced by 36 weeks in the 33 states that have unemployment rates below mean average and by 26 weeks in the 12 states that have unemployment rates above 9 percent. While national unemployment has ticked down recently, the average duration of unemployment is still high, at 40.1 weeks. That’s two weeks longer than a year ago when the unemployment rate was nearly a full percentage point higher than it is today. Unless the duration of unemployment reverses trebnd and starts going down, more and more unemployed people will start losing their government support before they find a new job under this deal.

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Comments

Displaying 1-30 of 46 total comments.

  • jianan9 02/16/2012 2:34am
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    nickg 04/05/2012 5:01pm
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    I’m not sure what this comment is about. :/
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  • chrisktrue 02/16/2012 7:28am
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    Lets see how it Unfolds.Lots of unemployed are anxiously waiting for the result.
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  • chrisktrue 02/16/2012 7:30am
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    Lets see how it Unfolds.Lots of unemployed are anxiously waiting for the result.
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  • sapper 02/17/2012 8:05pm
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    The best way to fight unemployement is to look at ethnycities roots and understand exactly what kind of cultures they’ve being stumbling upon before finding their identities. The same problem happens with teenagers. They try to support themselves in dedicated forums in order to understand where they come from and find out what they want to do with their lives. teenforums

  • merry 02/18/2012 2:14am
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  • MartinCristen 02/20/2012 1:22am
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    Will it have negative effects on the economy? powder coat systems

  • ludahai12345 02/20/2012 6:16am
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    The article is so beautiful, so I feel very good, thought I saw my favorite paddington padlock the same, thank you of you are great.

  • HanesSparks 02/21/2012 12:03am
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    Thanks for the very informative post! At least this can give an insight to our fellowmen who are unemployed until now. I wish that our next government will provide better insurance to the unemployed in the future. DUI Attorneys

  • AshleyNoel 02/21/2012 10:39pm
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    Wonderful article. Hope that rollers of the country will find this issue an alarming and not beneficial to many people, and wish for better results. Tampa DUI Lawyers

  • AndrewvHugh 02/22/2012 7:39pm
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    This is an informative article. It sends a message to the concern people to act on this issue because it affects many lives. Lawyer

  • mEGzCamp 02/22/2012 8:15pm
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    Thanks for sharing an informative article! I guess, this is the better option to fight unemployment in the country. Keep posting!
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  • kimtreston 02/24/2012 12:13am
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    I guess the list of new restrictions for the unemployed citizens are good. It’s important to make sure that these people receiving unemployment benefits from the government are not consuming illegal drugs.By passing these new rule I really hope that the unemployment rate would fall down.
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  • henderkane 02/24/2012 6:45am
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    This is crisis. Too bad for the less privileged. They really want to improve the economy? Why not start cutting their lavish salaries? Nevertheless, more and more fresh college graduates are still unemployed. Good luck to this bill.

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  • kevindav 02/25/2012 2:27am
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    Unemployment is the worstest problem which affects people in the below poverty line. Let’s hope this unemployment would be reduced to half or to minimum extent this year.backlink cheker

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    movingtocanada 04/04/2012 12:24am
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    Number one problem it’s almost impossible to take you seriously when you say worstest. Second my father has a degree, i don’t know specifics but he can operate and maintain bio-medical systems. Hes been to 9 separate hospitals in 5 months looking for work and not even been given consideration for a position, in which he would excel. But he currently works at a factory just trying to stay afloat. So tell me this if working all the time isn’t enough then why would it be a good idea to forcibly decrease the amount of money (which you earned and the government took)that you can have back. My prediction is that this bill will cause an increase in both the crime rate and the amount of homeless. I know you inconsiderate ones don’t care you’d sell your child for a dollar right. The Government is trying to hurt us plain and simple.

  • JourneyFrank 02/25/2012 6:51am
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    This is not surprising to hear because every countries has this problem. Government should give response in this kind of problem. Florida Habitual Traffic Offender

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  • samuelfox 02/28/2012 1:16am
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    This is really surprising and the government should open their eyes about this issue. Actually every government in all countries are facing this kind of problem. I hope everything will be settle and everything will turn ok.

  • bobdawson 02/28/2012 1:50am
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    Every nation had this kind of issues and hope each government must do something to lessen the population of those unemployed. And this bill is such a great help for the people of America, they should be thankful if it will be approved.

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  • swinka 02/29/2012 12:16pm
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    Unemployment is affecting every country at present and it is up to the goverments to put reforms in place. seo company

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