Continuing Emergency UI Could Save 89,000 California Jobs

A new report by the President’s Council of Economic Advisers estimates that renewing federally supported Unemployment Insurance (UI) benefits for another year would boost the number of US jobs by 593,000 in December 2011 – including 89,399 jobs in California – relative to what employment levels would otherwise be if Congress fails to continue emergency UI benefits.

As we explained in a recent blog post, the expiration of federally supported UI benefits two days ago puts jobs at stake because without UI, unemployed workers will be forced to spend less, and weaker sales give businesses less incentive to hire. The dire national jobs report released by the Bureau of Labor Statistics this morning – which showed that the US unemployment rate rose to 9.8 percent after flat-lining for three months at 9.6 percent – makes the case for renewing emergency UI even stronger.

— Alissa Anderson