How the White House Job Proposal Could Impact Communities

The 2010 poverty numbers illuminated the continuing challenge that communities across the country are facing in ensuring that families have the jobs needed to support their families. According to most recent U.S. Bureau of Labor Statistics' August report, employment rates remained unchanged in August with unemployment holding at 9.1 percent. The unemployment rate for adult men was 8.9 percent and was 8 percent for adult women. The statistics when broken down by age and race were even more stark. Youth unemployment has reached 25.4 percent. And while the unemployment rate for whites is below the national average at 8 percent, the rate for blacks is nearly double the national average and more than double the rate for whites at 16.7 percent. Similarly, the unemployment rate for Hispanics is 11.3 percent. In addition the August report show that the number of long-term unemployed (those jobless for 27 weeks and over) remained unchanged -- but that accounts for about 42.9 percent of the unemployed. Furthermore, the Bureau of Labor statistics show that the average period of unemployment for workers has ballooned to over 40 weeks.

Many advocates are pointing to President Obama's Americans Jobs Act as one solution to improving the current economic situation (albeit with skepticism as to whether it will be legislated in full). The Jobs Act contains many provisions that could significantly impact the economic well-being of families, including:

• a $500 million investment in transportation infrastructure and $10 million to captalize a National infrastructure bank. We know how essential transit is to linking communities to opportunities, reducing economic isolation and making household budgets more manageable for low-income people and working families.

• $15 million for a new "Project Rebuild" program that would put people back to work rehabilitating and refurbishing vacant and foreclosed homes. In Supporting the Economic Well-Being of Families: Opportunities for Communities in the Federal Budget, we highlight how a local community in Atlanta was able to leverage Department of Housing and Urban Development Neighborhood Stabilization Program funds to acquire foreclosed housing and then work in partnership with their local Center for Working Families to connect residents with career opportunities in the rehabbing of these homes. As we discuss in Affordable Housing as a Platform for Improving Family Well-Being: Federal Funding and Policy Opportunities, this is an important strategy that communities are utilizing across the country to respond to the dual and interrelated impact that the recession has had on both employment and housing.

• $5 million for a Pathways Back to Work Fund that would expand job opportunities for low-income youth and adults by providing subsidized employment, innovative training programs and summer/year round jobs for youth. This program builds off the successes of many communities that were able to creatively use the TANF Emergency Fund to create jobs. According to CLASP, the TANF Emergency Fund created 260,000 jobs in 39 states between 2009 and 2010 and was so successful that several programs were continued even after federal funding ended.

We will be following the President's proposal and subsequent Congressional action and will keep you updated with relevant information.

Find out how state and local officials are responding to the American Jobs Act.

For more information on how the Jobs Act could impact your state.

Read about how the American Jobs Act could impact youth, low-income families, and non-profits.

The November Unemployment 2010 Numbers

Unemployment continues to be high; The Bureau of Labor Statistics reported on Friday that the unemployment rate climbed slightly in November to 9.8 percent (up from 9.6 percent in October). This means that there are approximately 15.1 million unemployed people in the United States. Additionally, unemployment is having a significant effect on members of minority groups with 16 percent of African Americans and 13.2 percent of Hispanic Americans reporting that they are unemployed.

While the private sector continues to report increases in job creation, the recovery is slow, and there are still more than 7 million fewer jobs in the U.S. today than when the recession began in 2007. Economic Snapshot for November 2010, by Christian Weller at the Center for American Progress, addresses the economic improvements being made, and why they haven’t yet positively impacted the families across the country experiencing unemployment, foreclosures and credit default at record rates.

Chad Stone at The Center on Budget and Policy Priorities issued a statement regarding the November Unemployment numbers. Stone states that long-term unemployment remains a very serious concern. Over two-fifths (41.9 percent) of the 15.1 million people who are unemployed (6.3 million people) have been looking for work for 27 weeks or longer (amounting to 4.1 percent of the labor force). Additionally, Stone states that it remains very hard to find a job. The Labor Department’s most comprehensive alternative unemployment rate measure — which includes people who want to work but are discouraged from looking and people working part time because they can’t find full-time jobs — remained at 17.0 percent in November, not much below its all-time high of 17.4 percent.

The Urban Institute is hosting a series of events addressing the U.S. job market. The events, solution-focused policy forums, will address strategies for job creation, labor market roadblocks for young workers and retirement barriers for older workers, and revamping the safety net so that it works during high, persistent unemployment. All event can be attended in-person or via webcast.

• December 10, 2010: The New Unemployment and What to Do About It: Jumpstarting the Job Market
• January, 25, 2011: Young and Older Workers (Not) Entering and Exiting the Labor Market
• February 23, 2011: How Should the Safety Net Be Retooled to Work in Times of High Unemployment?

By Megan Martin, cross posted from Policy For Results blog

To learn about workforce development opportunities in the federal budget, please see CSSP's new brief, Supporting the Economic Well-Being of Families: Opportunities for Communities in the Federal Budget, which highlights programs in the President’s 2011 budget that can be used to address the employment and economic needs of families in low-income communities.

TANF Emergency Extension May be Linked to Unemployement Insurance Extension

Funding for two vital supports for poor and working families may be part of a single bill moving through the Senate in the next month. Look for the jobs (“extenders”) bill to include both the extension of Unemployment Insurance and COBRA benefits, as well as the extension of the TANF Emergency Fund. The Center for Budget and Policy Priorities issued a statement earlier this week explaining that the two would likely be linked together as the best strategy to keep the TANF Emergency Fund extension moving forward.

An extension of the TANF Emergency Fund passed the House last month as part of a small business jobs bill (H.R. 4849). At this point, there are Democratic leaders in the Senate who plan to advance a Senate version of the bill during the month of May or later in the summer. In March, the House and Senate both passed a two-month extension of Unemployment Insurance and COBRA benefits through June 2, 2010 as part of the jobs bill. The final jobs bill is expected to be finalized before Memorial Day. Because this time line is more accelerated, advocates are urging legislators to add the TANF EF extension to the jobs-related bill.
It is particularly important that both Unemployment Insurance Benefits and TANF Emergency funds are extended now. Unemployment Benefits are paid directly to out of work Americans from State Unemployment Insurance Trust Funds. Unemployment Benefits were extended under ARRA to provide more support to states and extend the time families out of work could receive this critical benefit. Millions of Americans are out of work and relying on Unemployment Benefits to pay for mortgages, food and health care.

The extension of the TANF Emergency Fund is also critical to states and to low income and working people. The TANF Emergency Fund reimbursed states up to 80% for short-term, non re-occurring benefits or subsidized employment for eligible households. If the TANF emergency is not extended by June 1st, states will stop making new placements and begin to wind down programs supported by these funds. This may affect work placement and training, summer jobs programs, and other support to families including utility and food assistance.
To follow the progress of the TANF Emergency Fund, go to CLASP's page on this issue. To follow action on Unemployment Insurance Benefits, go to the National Employment Law Project.

Unemployment Benefits and COBRA Extensions at Risk

Congress did not pass the 30 day extension of the Unemployment Insurance and COBRA programs before going into recess last week. Over 11 million jobless workers are collecting unemployment insurance in the United States. In April alone, as many as 1 million unemployed workers could lose benefits if Congress does not act before April 5th to extend them.

According to the National Employment Law Project, “it appears extremely unlikely that the Senate will be called back into session for a vote before April 5th, when the programs expire.” NELP reports that the Senate has scheduled a vote to end debate on the bill (a cloture vote) for 5:30 pm on Monday, April 12th, at which time they'll try to move the 30 day extension through as quickly as possible. The Senate is also working with the House to resolve some differences in the bill that would extend these programs through the end of 2010.

For more information on Congress' failure to act, you can view the NELP press release.

Unemployment Benefits - Opportunities for Extension and Modernization

In many states, Unemployment Benefit Programs have left low-wage workers, women and part-time workers struggling to qualify for the program. Other growing segments of the workforce also fall through the cracks, including temporary workers, older workers and immigrant workers. Unemployment Insurance is designed to protect families from devastating financial hardship as a result of temporary job loss; however, many of the state rules have been outdated for decades.

The Unemployment Insurance Benefit program was basically designed for the workforce of the Great Depression. The workforce today is very different – and includes women heads of household, for example. Women are more likely to leave a job to care for a dependent – and are left without income protection when they make this choice. One in five US workers works part-time. However, 23 states including Kentucky, Rhode Island, and Texas, do not allow UI benefits for unemployed part-time workers.

The American Recovery and Reinvestment Act (ARRA) provided opportunity to extend benefit timelines to address devastating effects of record unemployment rates nation-wide. ARRA also created incentives to encourage states to modernize their programs. The ARRA unemployment provisions provide 34-53 weeks of Emergency Unemployment Compensation (EUC), full federal funding for another 13-20 weeks of Extended Benefits (a program normally funded 50 percent by the states), an increase of $25 per week in both state and federal UI benefits, and a 15-month 65-percent COBRA subsidy for jobless workers.

The ARRA also included the Unemployment Insurance Modernization Act (UIMA), which provided $7 billion in financial incentives to close gaps in state unemployment insurance benefit programs that make it difficult for working people to claim benefits. States have until August 2011 to submit applications for incentive funding to the DOL. States qualify for 1/3 of the UIMA funding if it has in place a policy called “alternative base period. ” Most states still use an old formula that excludes workers’ earnings in the most recent quarter. The alternative base period considered the most recent earnings of the individual worker when setting the unemployment benefit payment. To qualify for the remaining 2/3 ARRA incentive funding, a state must provide benefits to workers in at least two of four categories:

• PT workers denied benefits because the state has been requiring them to seek FT work.
• Individuals who leave work for a compelling reason (including domestic violence, caring for a sick relative, relocating for a spouses job)
• Workers with dependent family members who would qualify for up to $15 more in weekly benefits per dependent
• Permanently laid-off workers who require access to training to improve their skills with the help of an extra 26 additional weeks EB

Some states, including California, Colorado, Georgia, and Maryland, have undertaken modernization efforts in the wake of the ARRA Unemployment Insurance Modernization Act. The National Employment Law Project (NELP) provides technical assistance and coordination around modernization efforts. NELP’s website includes state-by-state analysis, Modernization Model Legislation, analysis of reforms undertaken to date and is a clearing house of information related to Unemployment Benefit extension and modernization. http://www.nelp.org/