Tuesday, December 22, 2009

Unemployment Crisis across the U.S.

Last week we reported in the print edition that Georgia Labor Commissioner Michael Thurmond had requested interest-free advances from the federal government ( read the press release here, it's titled "Concerning Georgia's Unemployment Crisis.") to enable the state to continue making payment on the 268,995 valid unemployment claims in the state.
Today the Washington Post is reporting the Georgia is not alone.
"Currently, 25 states have run out of unemployment money and have borrowed $24 billion from the federal government to cover the gaps. By 2011, according to Department of Labor estimates, 40 state funds will have been emptied by the jobless tsunami.
"There's immense pressure, and it's got to be faced," said Indiana state Rep. David Niezgodski (D), a sponsor of a bill that addressed the gaps in Indiana's unemployment program. "Our system was absolutely broke."
In the short term, the only way to fix it will be to cut benefits or raise taxes. In this community, that would be one more shoot, with no conceivable ladder.

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