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On Saturday, approximately 1.3 million Americans who have been unemployed for weeks, months or years are waking up to a grim reality: a steady supply of cash assistance through the Emergency Unemployment Compensation (EUC) program has been cut off, and as of right now, no help is on the horizon.
The federal program, which was expanded in 2008 to provide extra income to the long-term unemployed who have exhausted their 26 weeks of state benefits, lapses Saturday because Congress failed to extend the federal program into 2014. For much of the recession, the government not only offered extended benefits beyond those 26 weeks, but also introduced the EUC program to offer up to 99 weeks of assistance in many states.
In the first six months of 2014, 1.9 million additional Americans will use up their state-funded benefits and find themselves without a federal safety net waiting if the program is not renewed. That number will jump to 3.6 million people. According to a report from the White House Council of Economic Advisors and the Labor Department, in October the average length of unemployment was 36.1 weeks – two and a half months longer than state benefits will last with no extension. The long-term unemployment rate is 2.6 percent, roughly one-third of the overall employment rate of 7.3 percent.
Full article
Now what are these people going to do for a steady supply of cash? Umm, the word job comes to my mind.