New Economic Analysis: $400 Million Drained from State Economies in Unemployment Benefits This Week Alone

Jan 3, 2014

WASHINGTON – The expiration of federal unemployment insurance at the end of last week is already taking more than $400 million out of the pockets of American job seekers nationwide and state economies, according to a new analysis by Ways and Means Committee Democrats. Unemployment insurance is viewed as a very effective fiscal stimulus because jobless Americans tend to spend their unemployment insurance right away. The analysis spells out how much federal funding each state is going without in the first week since the emergency Federal Unemployment Compensation program expired. In Illinois, nearly 82,000 people lost an average $313 weekly benefit for a total statewide economic impact of $25 million. In Ohio, more than 39,000 people lost an average weekly benefit of $312 for a total statewide economic impact of $12 million.

At 11 a.m. this morning, Ways and Means Ranking Member Sander Levin (D-MI) and Democratic Whip Steny H. Hoyer (D-MD) will join former Labor Secretary Robert Reich and Harvard economist Lawrence Katz in holding a press call to highlight the harmful economic impact that will result if Republicans in Congress don’t agree to extend the program.

“In state after state, Americans who have lost their federal unemployment insurance in one fell swoop last week are struggling to get by,” said Ways and Means Ranking Member Levin. “Every week that Republicans fail to act tens of thousands of additional long-term unemployed Americans lose this vital lifeline as they look to get back on their feet after the worst recession in generations, and the economy in each state is taking a hit.”

Overall, failing to renew the EUC program will cost the economy 200,000 jobs this year, according to the Congressional Budget Office. Note that the below estimate is conservative because it only takes into account the total dollar amount provided per week by the now expired EUC program. Economists generally multiply these estimates by 1.5 to 2 to show the true economic impact. 

 
STATE
Number of People Who Lost Benefits Dec. 28
Avg. Weekly Benefit Lost
Total Benefit Lost This Week
AK
4,300
$247.61
$1,064,723
AL
12,036
$206.21
$2,481,944
AR
9,300
$286.11
$2,660,823
AZ
17,100
$219.06
$3,745,926
CA
213,793
$303.37
$64,858,382
CO
20,237
$359.12
$7,267,511
CT
23,997
$335.95
$8,061,792
DC
4,600
$300.87
$1,384,002
DE
3,600
$243.57
$876,852
FL
73,000
$231.20
$16,877,600
GA
54,400
$266.23
$14,482,912
HI
1,900
$415.82
$790,058
IA
4,300
$325.95
$1,401,585
ID
2,600
$258.36
$671,736
IL
81,867
$312.77
$25,605,542
IN
19,200
$238.24
$4,574,208
KS
4,400
$333.42
$1,467,048
KY
18,000
$288.60
$5,194,800
LA
7,832
$205.80
$1,611,826
MA
58,700
$444.00
$26,062,800
MD
22,900
$326.30
$7,472,270
ME
3,300
$284.84
$939,972
MI
43,311
$293.92
$12,729,969
MN
9,231
$375.15
$3,463,010
MO
21,329
$235.04
$5,013,168
MS
13,400
$192.15
$2,574,810
MT
1,876
$283.80
$532,409
NC*
NA
NA
NA
ND
300
$386.11
$115,833
NE
1,200
$272.31
$326,772
NH
1,004
$287.49
$288,640
NJ
90,300
$381.79
$34,475,637
NM
6,000
$288.66
$1,731,960
NV
17,600
$306.90
$5,401,440
NY
127,100
$305.75
$38,860,825
OH
39,100
$311.82
$12,192,162
OK
4,907
$294.62
$1,445,700
OR
20,067
$321.14
$6,444,316
PA
73,330
$343.31
$25,174,922
PR
30,700
$117.76
$3,615,232
RI
4,900
$337.13
$1,651,937
SC
15,400
$248.29
$3,823,666
SD
200
$261.34
$52,268
TN
19,500
$236.07
$4,603,365
TX
64,294
$338.59
$21,769,305
UT
2,500
$344.58
$861,450
VA
9,700
$296.95
$2,880,415
VI
1,300
$310.91
$404,183
VT
600
$298.13
$178,878
WA
24,414
$395.14
$9,646,948
WI
23,700
$266.09
$6,306,333
WV
6,933
$271.37
$1,881,408
WY
600
$371.36
$222,816
Total
1,336,158
$304.86
$408,224,089
 
*Estimates exclude North Carolina, which ended its EUC08 program in July 2013. US Dept. of Labor, Office of Unemployment Insurance.
 
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