Congressional Action Needed To Prevent 90,000 Jobless Missouri Workers From Losing Benefits By June

CONGRESSIONAL ACTION NEEDED TO PREVENT 90,000 JOBLESS MISSOURI WORKERS FROM LOSING BENEFITS BY JUNE

Over 20,000 Workers Facing End to Unemployment Benefits in March

St. Louis, MO - -  A new analysis by the National Employment Law Project (NELP) shows that over 20,000 unemployed Missouri workers will become ineligible for federal unemployment insurance (UI) benefits in March unless Congress passes an immediate extension of the unemployment programs from the American Recovery and Reinvestment Act (ARRA). After a two-month reauthorization in December, the benefits provided to jobless workers by the ARRA are set to expire at the end of February.

Missourians running out of regular UI benefits after March would qualify for no extensions, and many thousands more would be prematurely cut off of their federal extended benefits. By June, more than 90,000 unemployed Missouri residents are set to run out of their jobless benefits with no further support.

“Hard working Missouri residents are feeling the uphill climb of record long-term unemployment. Extended benefits represent the thin line between tough times and economic disaster for many families,” said Amy Blouin, Executive Director of the Missouri Budget Project.

Missouri has been hard hit by the recession, shedding 201,000 jobs from late 2007 through December 2009. Missouri’s December unemployment rate of 9.6 percent represents over 284,700 jobless workers.

Since the extended benefit program began, over 110,000 unemployed Missouri workers have received $418 million in federal extended benefits. The Congressional Budget Office estimates that UI benefits generate up to $1.90 in GDP per every dollar spent, making the UI provisions the most cost-effective policy for stimulus efforts in 2010. According to the Economic Policy Institute, extending the ARRA’s provisions for the duration of 2010 would save or create 850,000 jobs nationally.

“Workers spend these funds at local stores, paying their mortgages and rent, heating their homes and keeping food on the table,” added Blouin. “By extending these benefits for the rest of 2010, Congress can preserve this critical funding and keep delivering desperately needed dollars to Missouri communities.”

The National Employment Law Project (NELP) released data recently showing that nationally nearly 5 million unemployed workers will be left without any jobless benefits by June. Their national and state by state analysis, “Workers Losing Federal Unemployment Benefits in 2010 Due to Expiration of the ARRA,” is available here: http://www.nelp.org/page/-/UI/exhaustion.chart.feb.2010.pdf?nocdn=1

For more information on the methodology used to arrive at the estimates presented in the new NELP chart, please contact Anna Deknatel at anna@berlinrosen.com. NELP is also available to help identify workers whose benefits are expiring.

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The Mission of the Missouri Budget Project is: To advance public policies that improve economic opportunities for all Missourians – particularly low and middle-income families – by providing reliable and objective research, public education and advocacy. More information is available at www.mobudget.org.