For Immediate Release: Friday, November 4, 2011
Contact: Phoebe Silag or Karen Conner, firstname.lastname@example.org 202-775-8810
Extending UI benefits through 2012 will generate 560,000 jobs, finds EPI analysis
Continuing the extension of unemployment insurance (UI) benefits through 2012 will generate roughly 560,000 jobs, a new analysis by the Economic Policy Institute (EPI) finds. Labor market will lose over half a million jobs if UI extensions expire in 2012 by EPI President Lawrence Mishel and EPI researcher Heidi Shierholz explains that UI benefits boost spending in the economy and create jobs as a result.
In fact, expanding UI programs is one of the most effective responses to economic downturns because long-term unemployed workers are extremely likely to spend unemployment benefits immediately. And while the estimated cost of continuing UI benefits through 2012 is $45 billion, the actual cost to the federal government is $18.1 billion. The taxes brought in by the earnings from the 560,000 jobs, coupled with decreased spending on safety net programs, will enable the government to recoup $26.9 billion.
Unemployment insurance provides a lifeline to unemployed workers. There are currently 4.6 workers for every job opening, and the Congressional Budget Office projects an unemployment rate of 8.5% through 2012.