Friday, March 5, 2010
Extended jobless benefits start ending
The extended jobless benefits are near end. The question is in such circumstance what should be a good resolution to pass now? Whether the unemployment befefits should be extended even further or it should be canceled? With so many problems already hanging in sight, this is going to be a hard decision for the governement. Hope this articles provides some hints on the current job market.
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According to the article, government’s stopping jobless benefits can actually be helpful. To be specific, loss of current jobless benefit can be an incentive for the unemployed to find job in a limited time. And this will reduce frictional unemployment which defines as unemployment caused by the time it takes workers to search for a job.
ReplyDeleteThe thing that really struck me in this article is that in some states, unemployment benefits can run as long as 99 weeks; that’s over two years! I feel as though that time period is too much given what we’ve discussed in class about how generous unemployment benefits decreases the rate of job finding. The article discusses how such long term unemployment benefits are necessary because the unemployment rate is so high and is expected to remain high in the coming years. However, the average length of unemployment is currently 30.2 weeks. I think having unemployment benefits that last 3 times as long as the average length of unemployment is ridiculous.
ReplyDeleteI agree with Hayley. I understand that unemployment benefits are necessary but I fail to understand why unemployment benefits extend to 99 weeks when the average length of unemployment is 30 weeks. We have seen in class that decreasing unemployment benefits decreases the rate of unemployment and it also decreases government spending which are two things that the government should be gunning for at this very moment.
ReplyDeleteHaving UE benefits end for some people is going to be tough, but overall it will make people more actively seek work. Having these long term unemployment benefits for a lot of people turn them into lazy americans who enjoyed sitting back on their couch everyday and watching sportscenter in their pj's. Now with no free money being given to them they have to go out and earn it somewhere. This is a good plan, and its a kick in the butt to get out and make something of yourself.
ReplyDeleteI hope that the prediction of stimulating unemployed people to find jobs by cancelling jobless benefits will be realized, otherwise if could be a disaster to unemployed people. Also, I think it is a good news that the unemployment rate is dropping in a relative steady rate according recent news.
ReplyDeleteI think it will be interesting to see whether or not the end of the jobless benefits will help our nation as a whole by creating incentive for the jobless to search for work again or if the end of benefits will do more harm than good. Hopefully, this will reduce the unemployment level by increasing the need for work and income.
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