Unemployed Americans around the country are in danger of losing their unemployment benefits in 2012 if Congress doesn’t implement a job plan in time. According to a new report from the National Employment Law Project (NELP), as many as 6 million will lose their benefits next year without action from lawmakers.
1.8 Million to Lose Unemployment Benefits in January
Job creation has been on the minds of lawmakers for several weeks, but so far, no action has been taken. According to the NELP, a national advocacy organization for employment rights of lower-wage workers, inaction could result in the loss off benefits for millions of unemployed workers.
The organization revealed in a recent report that in addition to 6 million losing their federal unemployment benefits sometime next year, 1.8 million will lose theirs in January.
Opportunities for work remain sparse and unemployment benefits serve as an essential lifeline for the jobless. In September alone, 3.6 million people collected federal unemployment benefits, according to the Labor Department.
If an extension isn’t passed, jobless workers will still be able to collect up to 26 weeks of state benefits, but they could lose up to 53 weeks of emergency compensation and up to 20 weeks of extended benefits due to an inability to apply for federal benefits.
Can Lawmakers Agree On a Job Plan?
In early September, President Barack Obama proposed a $447 billion job stimulus plan, known as the American Jobs Act, which would boost hiring and provide a jolt to the stalled economy. The bill would also extend the deadline to file for federal unemployment benefits for another year.
The Senate is expected to take up the controversial bill on Tuesday, but some say it is not likely to go very far.
Others suggest the unemployment extension could be separated and sent through on its own–or as part of another bill before the end of the year. The extension is expected to cost $44 billion, according to the Congressional Budget Office. Many think it will gain some bipartisan support, especially with unemployment at 9.1 percent.
The NELP believes that unemployment benefits definitely need to be extended to save jobless workers. As noted by Judy Conti, NELP’s federal advocacy coordinator, “If you don’t extend unemployment insurance, things will get worse and they’ll get worse in a big way.”
