11.5 Million Americans Are Receiving Jobless Benefits

First-time claims for state unemployment benefits remained elevated in the latest week, the Labor Department reported Thursday. The number of initial claims in the week ending Jan. 23 fell 8,000 to 470,000. The consensus forecast of Wall Street economists was for claims to drop below 450,000. Claims in the previous week were revised to an increase of 34,000 to 478,000 compared with the initial estimate of a increase of 36,000 to 482,000. the highest level since November. The four-week average of initial claims rose 9,500 to 456,250. A Labor Department official said there were no reports of backlogs at state offices. Meanwhile, the number of Americans receiving state jobless benefits held steady fell 57,000 to 4.60 million in the week ending Jan 16. The four-week moving average of continuing claims fell 94,250 to 4.7 million. Overall, 11.5 million Americans received federal and state unemployment benefits on an unadjusted basis in the week ended Jan. 9, the latest period for which the data is available. This is down from 12.0 million in the prior week.

Congress, Extend Unemployment Benefits Now!

The National Employment Law Project is urging Congress to continue the extended unemployment benefits program, including full federal funding of Extended Benefits, the $25 per week in Federal Additional Compensation, and the 65% 15-month COBRA subsidy through the end of 2010. Action is needed now because the current unemployment extensions are set to expire at the end of February. Here's how to send a message to Congress ask them to extend benefits for workers who are going to run out: http://www.nelp.org/page/speakout/FederalUI2010

Understanding COBRA and "Mini-COBRA"

The American Recovery and Reinvestment Act (the economic stimulus legislation) provides assistance with premiums to help involuntarily unemployed workers purchase their former employer's COBRA or other continuation coverage. Originally, the act provided nine months of premium assistance for people laid off between September 1, 2008, and December 31, 2009. However, emergency legislation that President Obama signed into law on December 19, 2009, has extended this assistance: People can now get assistance paying for their COBRA premiums for up to 15 months if they were laid off between September 1, 2008, and February 28, 2010. Furthermore, in 2010, Congress may consider passing legislation that assists people who are laid off later than February as part of the anticipated jobs bill.

Currently, under the act and its extension, for up to 15 months, eligible unemployed workers will need to pay only 35 percent of their total COBRA premiums to continue the health coverage that they had through their jobs, and the federal government will reimburse employers or health plans for the remaining 65 percent of premiums. People are eligible for premium assistance if they were (or are) laid off between September 1, 2008, and February 28, 2010; have annual income during the tax year that does not exceed $145,000 for individuals and $290,000 for families; have a right to continued health coverage under COBRA or another law; and are not eligible for coverage under another group plan (such as through a spouse’s employer) or for Medicare. People with adjusted gross incomes between $125,000 and $145,000 (or between $250,000 and $290,000 for joint filers) will need to repay a portion of the assistance that they receive, while people with incomes below $125,000 for single filers and below $250,000 for joint filers are eligible for full assistance with no repayment.

More: http://familiesusa.org/issues/private-insurance/understanding-cobra-premium.html

Senate Approves Unemployment, COBRA Extensions

The U.S. Senate, on an 88-10 vote, today approved the 2010 defense appropriations bills which also includes the temporary extension of jobless benefits and a government subsidy for COBRA health insurance premiums.

President Barack Obama, who supports the legislation, must now sign the law for the aid to the unemployed to take effect.

The much-awaited vote, which had been held up because of the debate over the health care package, came in a rare Saturday session for the Senate at about 5:30 a.m. today.

If signed by the President, the bill would continue several extensions of unemployment benefits through Feb. 28. An extra $25 a week payment approved by Congress earlier this year in the economic stimulus package also will be extended two months.

In addition, the bill  extend a 65% government subsidy on COBRA health insurance premiums from the current nine months to 15 months. People who get laid off over the next two months who have COBRA coverage through their companies also will be eligible for the subsidy.

Both the unemployment extension and COBRA subsidy were due to expire Dec. 31, which would have cut benefits to millions of jobless workers. Already thousands of people have lost the COBRA subsidy after exhausting the current nine months of benefits in November.  They will now be able to get the subsidy for six more months.

US Senate Will Pass Unemployment Extension With Cloture... Again.

Early Friday morning (around 1:30am) the Senate passed a cloture vote 63-33 to limit debate on the Defense Department spending bill, which has attached to it unemployment benefits extensions in the form of unemployment insurance and health insurance benefits. The Senate is scheduled to vote on the bill Saturday morning at 7:30am. This should ensure that the unemployment benefits extension deadline glitch is fixed, coupled with a short two-month extension for vital programs before Congress leaves for the year (assuming President Obama signs the bill into law in short order, for which there is no reason to suspect he will not).

This legislation is as good as passed and for those who find themselves unemployed, this news is welcomed and appreciated.  More information will be posted after the final passage. 

State of Tennessee Announces Modest Drop In Unemployment

NASHVILLE – Tennessee Commissioner of Labor & Workforce Development James Neeley announced today Tennessee’s unemployment rate for November was 10.3 percent, down 0.2 percentage point from the October rate of 10.5 percent.

“As the year ends, we’re seeing evidence the economy is bottoming out and beginning to show some modest employment growth, which is encouraging news,” reported Labor Commissioner James Neeley.

The November rate a year ago was 7.2 percent. The national unemployment rate for November 2009 was 10.0 percent, down from the October rate of 10.2 percent.

Major Changes in Estimated Nonagricultural Employment
October 2009 to November 2009
According to the Business Survey, 7,300 job gains occurred in retail trade; 1,800 in professional and business services; and 1,300 in health care and social assistance. Major employment decreases occurred in durable goods manufacturing, down by 1,800; arts, entertainment and recreation declined by 1,300; and mining and construction declined by 1,000 jobs.

Major Changes in Estimated Nonagricultural Employment
November 2008 to November 2009 Year-over-year increases occurred in health care and social assistance, up by 7,500; federal government increased 1,500; and local government educational services gained 1,100. Manufacturing decreased by 29,800 jobs; mining and construction lost 28,200; and trade, transportation and utilities declined by 23,300.

Resources For Managing Your Finances While Unemployed

The loss of a job can drain you both emotionally and financially. Below you will find resources gathered by the Washington Department of Financial Institutions to help you manage debt, avoid foreclosure, cut expenses, and more.  This is an area of the blog which may be expanded as more resources are recognized.

Credit and Debt Help

Paying off or keeping up with large amounts of debt can be difficult when you are unemployed. Learn more about your rights and what to do if you are over your head in debt.

How to Deal With Creditors Dealing with creditors can be difficult and stressful, especially after the loss of a job. Choosing a Credit Counselor Reputable credit counselors can advise you on managing debt and help you budget. Debt Consolidation Advantages and disadvantages of debt consolidation.

What To Do If You’re Knee Deep in Debt If you are overwhelmed by debt, learn about some of the options available to you. Repairing Bad Credit Credit cannot be repaired overnight. Learn how to help yourself and how to spot scams.

Local Credit Counselors

Consumer Counseling Northwest CCNW serves Western Washington. Credit Counseling Services of Inland NW CCCS serves the Spokane Area.

Credit Counseling Service of Tri-Cities Serves the Tri-Cities area. Credit Counseling Service of Yakima Serves the Yakima Valley area.

Avoiding Fraud and Scams

Fraudsters specifically target the unemployed. Avoid becoming a victim of a scam or fraud by learning about the latest scams.

Web Scam That Targets the Unemployed Information about a scam targeting the local unemployed. Financial Fraud Alerts Local financial fraud alerts from the Department of Financial Institutions.

Consumer Alerts Local consumer alerts from the Washington Office of the Attorney General. Alerts from BBB Alerts from the local Better Business Bureau.

Trouble Paying Your Mortgage - Avoiding Foreclosure

Foreclosure is a stressful situation for those who must go through it. If you
are having trouble making your monthly mortgage payment, seek help right away.

Foreclosure & Homeownership Counseling Free counseling sponsored by the State of Washington. Information about Foreclosure Information about foreclosure and possible alternatives.

Beware of Foreclosure Rescue Scams Information about foreclosure rescue scams and what to look for. Loan Modification Services - Caution Be cautious of someone offering to help modify the terms of your home loan.

Cutting Expenses

One of the first things you need to do when you lose a job is cut spending.
Find creative ways to cut costs on utilities, groceries, entertainment, etc.

66 Ways to Save Money 66 ways you can start saving money today! Saving Money on Groceries Tips on how to save money when grocery shopping. Save on Energy Costs Tips on how to save on your energy bill. Save Money on Your Utilities Tips on how to save on your utility bills.

Save Money at The Gas Pump How to save on gas. Save Money on Entertainment Ideas on how to save money on entertainment. Save Money on Phone, Internet, TV Tips on how to save money. More Resources and Tips Resources and tips on how to save money.

 

Budgeting and Managing Money

Managing money while unemployed can be difficult. Learn more about managing
money during tough times and how to set up a tight budget.

Tips for Managing Your Money Tips on how to manage money during tough economic times. Household Budget Worksheet Interactive budgeting worksheet.

Budget Building Tips on how to build a tight budget from Today Show contributor, Jean Chatzky. Saving On A Tight Budget You can save money - even on tight budgets.

Retirement Accounts and Health Care Coverage

Many unemployed workers worry about their retirement and insurance coverage.
Learn more from what happens to your retirement and insurance coverage after a
job loss.

WA Department of Retirement Systems The Department of Retirement Systems administers retirement benefits for public employees throughout Washington. Job Dislocation - Making Smart Financial Choices (PDF) Information about making smart financial choices after a job loss. Retirement and Health Care Coverage Q&A’s about retirement and health care coverage for dislocated workers.

Protect Your Health Coverage and Retirement Benefits Helpful information about health care coverage and retirement benefits. Your Employer's Bankruptcy - How Will It Affect Your Employee Benefits? Fact sheet  on how an employer’s bankruptcy will affect your benefits. Protecting Pension and Health Care Benefits After Job Loss Tips on protecting your pension and health care benefits after a job loss.

Taxes

The loss of a job can create new tax issues. Learn more about filing taxes while unemployed.

Financially Distressed Taxpayers The IRS recently announced new steps to help financially distressed taxpayers. Tax Impact Of Job Loss (PDF) The loss of a job may create new tax issues for you. Learn more from the IRS. Unemployment Compensation Information from the IRS about unemployment compensation.

VITA Program: Free Tax Help Help to low- to moderate-income people who cannot prepare their own tax returns.  Earned Income Tax Credit The EITC is a refundable federal income tax credit for low to moderate incomes. Taxpayer Rights Your rights as a taxpayer.