Even with recent employment reports showing sluggish job growth, federal unemployment benefits are still slated to run out starting this month, as reported by the Washington Post this week. While most state unemployment benefits provide 26 weeks of unemployment compensation, Congress in response to the recession had also provided an additional 26 weeks of unemployment to workers on behalf of the federal government. From the beginning of the recession to now, Congress has reauthorized the Federal Unemployment Compensation and the Extended Benefits programs over ten times in order to ensure that most Americans have at least a full year of unemployment compensation available to them. While the last reauthorization of the federal benefits was in February, these federal benefits are slated to phase out starting July 1 and without further Congressional action will no longer be available to any worker by December 31 of this year.
What this means is that for workers still facing an unemployment rate of 8.2 percent, unchanged for months, they will no longer have an important security net for them and their families. As the New York Times reported today, the nation added just 80,000 jobs in June, doing little to address the continuing unemployment and underemployment of millions of American workers. And with little hope of an additional stimulus measure passing Congress before the end of the year, these numbers will probably remain unchanged.
The mechanics of the phase out of federal unemployment benefits is simple but devastating for workers. Starting July 1, any worker who loses their job will only be eligible for their state unemployment benefits and there will be no federal benefits available to them if they do not find a job by December 31. Those who do find a job before December 31 will then be eligible for unemployment benefits up to December 29 at a maximum. If Congress does not reauthorize the Federal Unemployment Compensation and Extended Benefits programs, all federal unemployment benefits for any workers at the end of this year will be completely phased out.