Many Could Lose Unemployment Benefits

Unless Congress Acts, 1.5 Million Will See Checks Run Out by the End of the Year

CBS) It's becoming a painful routine for the millions of Americans out of work - lining up first outside job fairs, then asking for help at unemployment offices.

"It's very humbling," said Donald Mayes, now unemployed after a 19-year job. "I've never had to do this."

What's more, unless Congress acts to extend unemployment benefits, an estimated half million people will see their unemployment checks run out by the end of next month - almost a million and a half by the end of the year, reports CBS News correspondent Cynthia Bowers.

More than half a million more workers joined the line for unemployment benefits last week, falling in behind more than 6 million already collecting.

Joe Thurman of Chicago, a married father of two, lost his job in January and is one of 9.3 million Americans getting a check. But his benefits run out in October.

"To me it is doomsday, it really is," Thurman said. "I don't know where we're going to come up with the money to make our bills."

Let alone tuition for daughter Melanie and son Matthew.

A new study finds Illinois is one of 17 states borrowing federal dollars to keep its unemployment checks from bouncing. As the demand for benefits continues, it's estimated another 14 states could need a bailout by next year.

Typically the unemployed could count on just 26 weeks of benefits. Congress approved money for an additional 53 weeks, which now extends benefits to a year and a half - the longest stretch in the program's history.

"This is the biggest test of the unemployment system since it was started 75 years ago," said Andrew Stettner with the National Employment Law Project.

But even extended benefits, which only amount to half his pay, Joe Thurman worries he will not be able to keep his family afloat much longer.

"We'll probably lose the house," Thurman said. "The American dream is dead. It's over."

Now at age 51 he tries to start over, competing with more people for fewer jobs. July's unemployment figures are out Friday, are expected to hit 9.6 percent - a 26 year high.

http://www.cbsnews.com/stories/2009/08/06/eveningnews/main5221564.shtml

http://www.reuters.com/article/politicsNews/idUSTRE57637920090807

Congress may extend unemployment benefits
Fri Aug 7, 2009 11:54am EDT

By Andy Sullivan


WASHINGTON (Reuters) - The U.S. Congress will consider extending unemployment benefits after it returns in September to help 1.5 million Americans who risk exhausting them, Senate Majority Leader Harry Reid said on Friday.

"Soon after Congress returns to Washington we'll need to address this matter," Reid said. "There is an economic case to be made for extending unemployment benefits."

The unemployment rate eased to 9.4 percent in July from 9.5 percent the prior month, according to Labor Department data released on Friday. It was the first time the U.S. jobless rate has fallen since April 2008.

But the number of long-term unemployed continues to rise as the country struggles with the longest recession since the Great Depression of the 1930s, and many analysts attributed the dip in July to people giving up the job hunt.

Data ranging from home sales to manufacturing have pointed to an economic revival, but the unemployment rate is expected to remain high, which could lead to an anemic recovery. Obama administration officials say they still expect the unemployment rate to reach 10 percent this year.

more...

http://www.reuters.com/article/politicsNews/idUSTRE57637920090807

Many already have, and many more will.

and I'm too sick to go back to work. Any ideas about what to do?