Unemployment Benefits Ending for Thousands of Californians

[GlennO]

Mathew Pauley is among the 93,000 people in California set to lose unemployment benefits on Saturday, May 12.

“I thought I didn’t have to worry, I was already getting the federal extension,” he says.

Experts say the looming cut off is a double edged sword: the state’s extension is being nixed because the unemployment rate has been holding steady, but for thousands of unemployed workers, the cut off is not as rosy.

John Cádiz Klemack reports from Sherman Oaks for the NBC4 News at 5 p.m. on May 11, 2012.


Thousands of California residents are about to lose their federal unemployment benefits because of the loss of a federal extension.


Mathew Pauley is among the 93,000 people in California set to lose benefits on Saturday. Until recently, he thought he had two remaining months of benefits.


"Thought I didn't have to worry, I was already getting the federal extension," Pauley said.


That extension, known as FED-ED in California, won't be available after May 12, reducing the total number of weeks that Californians can collect benefits from 99 to 79.


The end of the extension is actually good news for the state because it means California's economy is getting better, said Loree Levy of the California Employment Development Department.

"In order for the state to qualify for the program you have to have a high unemployment rate," Levy said. "Certainly California does have a high rate, but it's not 10 percent higher than what it's been over the last three years, and that is a requirement of the program."

The state's unemployment rate sits at 11 percent, which is better than what it's been, meaning there are jobs out there, but job seekers like Pauley are having trouble finding them.

"Where are these jobs that are supposed to be here?" he said.


Like many others, Pauley is afraid he might lose his home if he doesn't find work soon.


"To tell you the truth, I don't know," Pauley said. "I'm just taking it one day at a time."



Unemployment Benefits Ending for Thousands of Californians | NBC Los Angeles

[GlennO]

One of the opinions voiced on the article said"

The National Park Service puts up signs to prohibit people from feeding wildlife because the animals find it easier to take the handout than look for their own food. They become dependent on the goodness of strangers and forget how to provide for themselves. The same is true of people... if they get a government handout every week for almost 2 years they get lazy and forget how to do the things necessary to support themselves. Necessity is a wonderful motivator. Don't tell me these people couldn't get ANY job for 99 weeks, maybe not their dream job, but ANY job. At some point it just became easier to take the free money. Glad it's ending."

I think there is an an echo from The Road To Serfdom by F.A. Hayek here.

[SonSeeker]

So California's unemployment is around 11%, but it's not 10% higher than it's been for the last three years. So the Feds cut off the 2-month extension.

It's nothing but a numbers game, and the unemployed are the pawns. The 93,000 unemployed who just lost their benefits on Saturday are no longer counted as being unemployed. So magically, California's unemployment rate looks better today than it did on Friday. Which is then interpreted as more people are working, and the economy must be getting better. Sounds wonderful doesn't it? Just not for the 93,000 who've been unexpectedly cutoff.