33 States Out of Money to Fund Jobless Benefits NEW YORK (CNNMoney.com)

[Neubarth]

33 States Out of Money to Fund Jobless Benefits

NEW YORK (CNNMoney.com) -- With unemployment still at a severe high, a majority of states have drained their jobless benefit funds, forcing them to borrow billions from the federal government to help out-of-work Americans.
A total of 33 states and the Virgin Islands have depleted their funds and borrowed more than $38.7 billion to provide a safety net, according to a report released Thursday by the National Employment Law Project. Four others are at the brink of insolvency.

Debt-challenged California has borrowed the most, totaling more than $8.4 billion, followed by Michigan and New York, which have loans worth more than $3 billion. Nine other states have borrowed at least $1 billion from the federal government.
"The nation's financing system for jobless benefits is under unprecedented stress," said Andrew Stettner, deputy director of the New York-based advocacy group for the unemployed.
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33 states out of money to fund unemployment benefits - Apr. 8, 2010

 

[Neubarth]

The United States Department of Labor has dropped Millions of American from the work force. They are no longer unemployed according to DOL. Yet, they are still receiving aid that is from the Federal Government in one form or another (Food Stamps, Medical care.....)

As I have pointed out thousands of times on this forum, in a Service Sector economy, increasing unemployment is a leading indicator of further unemployment in the future. If people are not spending for services, people who work in those services become unemployed as less people use those services.

Grandma was pulled out of Shady Hills Rest Home late last year. Others have been pulled out in the past four months and Shady Hills closed yesterday. The remainder of their staff that had shrunk by fifty percent in the past year have now all been laid off and will more than likely file for Unemployment Insurance in the coming days. It is a sad reality that none of the rest homes in the state are hiring new staff. Oh well, there is always hope for tomorrow or the next day whenever that comes.

 

[CrusaderFrank]

Obama's Plan is working!