Unemployment Insurance Extension Benefits Mississippi’s Economy

July 21st, 2010

Today, the United States Senate will vote on a bill to extend unemployment insurance (UI) to the long-term unemployed. In addition to supporting families, the extensions will put much-needed money into Mississippi’s economy.

As seen in the chart below, while the unemployment rates are beginning to decline from their peaks earlier in the year, many Mississippians are still looking for work.

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Opponents cite deficit worries as reasons not to support the UI extenders. However, UI payments provide one of the biggest boosts to the economy during a downturn. While UI extensions are critical for Mississippi’s economy, two important job supporting provisions are left out of the legislation: state fiscal relief and an extension of the TANF Emergency Fund.

State fiscal relief is necessary to protect jobs – especially those in the education sector. If included in the bill, nearly $100 million would be made available for K-12 education. The Temporary Assistance for Needy Families (TANF) Emergency Fund currently supports the Mississippi STEPS program. STEPS is a nationally recognized initiative that provides a pathway to employment for many low-income families around the state. Without federal extensions, the program would no longer have the resources necessary to continue.

Source:

U.S. Bureau of Labor Statistics