Benefits to End for Unemployed in 2014HR Resource
November 20, 2013 — 2,202 views
There is a high chance that about two million unemployed people will suffer the absence of benefits coming in March 2014. Nearly 1.5 million American citizens may lose the benefits they get for being unemployed at the end of the year. Additionally, another 850,000 could suffer from the withdrawal of these benefits because their agreement will expire in a few months.
This can be avoided if Congress manages to draw up an emergency extension plan until the 31st of December. However, the overall sentiment revolving around this predicament is negative because of the current financial situation and the massive fiscal deficit that the government faces. There have been a number of budget cuts that have already been seen in different sectors.
Benefits May be Discontinued From First Quarter of the Year
There is a chance that the unemployment benefits will be discontinued in an attempt to maintain some government savings to cover up a portion of the deficit. While it seems evident that there will be some modifications to the cuts and benefits the unemployed get, the notion of a jobless benefit extension is not very promising. If the program must be renewed in the coming year, it would add a $25 billion cost to the current $250 billion that it has so far.
However, if this is not renewed, close to five million people will suffer from the absence of support from the government. The current statistics show that about four million people have been unemployed over the last six months. With the current economic crisis and the rapid lay-offs that are being seen, it is likely that this figure will become far larger by the time the year ends.
Government’s Stance on the Issue at Hand
One of the top economic advisers to the White House, Gene Sperling, said that there has never been a time in history where an extension has not been made for such a large unemployment rate. Experts take a critical stance on the statement mentioning that the public address may have been given to simply save time and prevent unrest among the population.
Without government support, those who are unemployed will suffer drastically if the extension is not made. The government is trying to find a solution to resolve these potentially devastating matters and is working on structuring the budget to ensure that people are safe from further crises.