5 myths about unemployment

Nice article and some good suggestions here!

I found the Colorado unemployment income calculator here:

http://www.coworkforce.com/uibestimator/

For someone making $48000 a year, you do make about 1/2 that on unemployment. But as you get over $50K, it starts to flatten off.

One thing that bugs me is that every time we extend benefits, it encourages people to stay on unemployment. If you are collecting $24K, sure you'd turn down an $8/hr burger flipping job. But what if you were offered a $30K-$35K job? It's better than the $24K you are getting, but not as good as the $48K you used to get. I think many would still rather collect the $24K from the government and not have to work, unless they have families to support and are barely making it.

The first 6 months of unemployment are paid for by insurance and I have no problem paying everybody who qualifies that. But afterwards, it becomes a federal welfare program, and I think there should be some conditions and checking going on to make sure people are really looking for jobs, and truely need the money. It's not a significant number, but many wealthy people get laid off too. Again, pay them the first 6 months, but why pay them afterwards if they already have significant income from investments? And if a person can find an $8/hr job, maybe require them to take it and pay them the difference as a supplement?

And should extensions go on forevever? We are up to about 2 1/2 years of total unemployment now (99 weeks of extensions). Have we ever extended it this long in the past? Many other people were hurt by the recession, and they aren't getting this kind of help. For example (as has been mentioned), many working people are getting much lower pay now due to reduced working hours. And many retired people have found their investment based incomes cut way down due to the stock market, housing, and pension hits. I don't think they are getting assistance. Another possibility would be to gradually cut that 50% unemployment payment down in order to encourage people to find work.

BRACs are continuing today. Several bases are scheduled for closure this year and next.

See, I disagree - I know many people who have been on unemployment this past year, and they took the first job that offered - even if were a burger job for minimum wage, because enough companies are starting to refuse to hire people who haven't been employed in some sort of job within the last six months. I also know many people who were turned down for those minimum wage jobs, especially when over 50 people applied.

I have a $9 an hour job - and apparently some people around here think that's a crap job (I don't) - and I did take the first job I was offered. I also never applied for unemployment.

However, assuming people are just sitting on their asses is fallacious. Colorado requires all kinds of classes, a certain number of applications and interviews a week AND volunteer time that's 20-30 hours a week, and I understand that goes up as you get to a second teir. People aren't given time to set about - they are out there working for their unemployment. yes, they may be looking in their field at first, but within months, they are looking everywhere, because they are seriously very very aware that benefits do and will run out.

People in this situation around here - unemployed and underemployed - don't speak out about it, because people pull out the bullsh** -

That they are lazy - WRONG. They're unemployed, that's it.

That it is their fault they lost their last job - most cases, WRONG. It's their fault the company they worked for "downsized", closed a division or closed completely? Not even close.

That they should just move - when exactly was the last time anyone you know moved on no money? Last I checked, landlords want first, last and deposit - thousands of dollars in most cases. And if they own a house, well, houses just aren't exactly selling fast, are they?

That anyone can find a job - yeah, tell the 10% in Park county that. Sure, they could apply for any number of jobs, but are they even remotely qualified? Not everyone is an experienced line cook or prep cook, a caregiver for the elderly, a certified mechanic (this week's Hustler job listings)

Change the thinking about being unemployed, because the people in that spot don't like it in the least, they are already in or facing depression that needs medical treatment (which they also cannot get) and are doing their damndest to not be n that spot. Yes, there are a few exceptions - and those exceptions are what you focus on, not your neighbors, your family, your friends, and possibly even yourself.

So LH, if this is all true, and the economists are right that it will take 2-3 more years to reduce unemployment, we just pull out the National credit card and keep paying benefits 3 more years? Did you read any of the posts about ideas to pay for it?

I have seen "some" people milk unemployment benefits, and you have seen plenty that have not! So what? Its not my number one concern. I don't collect myself even though I could have, I just don't need it or want it. If people do need it they should, but we as a nation need to think about paying for it someday. And paying for everything else too!

And yes I have moved to take a job. Once from NY-AZ, from NY-CO, from CO-Virginia. Last job I had was a temp contract in Fort Collins. Not everyone can do it, but it is possible.

I am not trying to be mean to unemployed people, I am one of them. I just want to see some new ideas discussed for improving job opportunities, re-training, and ways to pay for the benefits.

Local_Historian wrote: However, assuming people are just sitting on their asses is fallacious. Colorado requires all kinds of classes, a certain number of applications and interviews a week AND volunteer time that's 20-30 hours a week, and I understand that goes up as you get to a second teir. People aren't given time to set about - they are out there working for their unemployment. yes, they may be looking in their field at first, but within months, they are looking everywhere, because they are seriously very very aware that benefits do and will run out.

LH, does Colorado still require all this after the first 6 months and after the feds start paying for the unemployment? If so, that covers one of my main concerns.

But I'm still concerned about how long the payments should continue. If 2 1/2 years isn't enough, how long should they still get full benefits that haven't been paid for? I've sugggested reducing them over time. Others have better ideas. I'd appreciate your opinion since it looks like you know a lot about the subject.

Pine - yes. One of my friends has been unemployed over a year now - and she still has to volunteer time, take classes, apply for jobs, get interviews, etc. She is here in Colorado.

How long should it last? I don't know. Perhaps if we stopped allowing the funding of pet projects for many politicians that do nothing to help anyone, then there may be more money for other things.

Joe - I've read everything that's come through that I possibly can on the subject. And while I qualify as underemployed, we don't take it either.

Don't know about you, but I've been paying my taxes a these years - have had large chunks of my paycheck taken out - to supposedly fund these programs. So if that means my single mother friend who has no other resort uses my "share", so be it. She clearly needs it, owning nothing but some clothes and household things, having sold the rest and her vehicle, and has two small boys to raise. I happily give over my "share" to her.


You have moved for a job. So have we - with company funding, that helped pay for our move, and in one case, they paid for the move, they bought our house, and paid our closing costs on our new house. And THAT is a MAJOR exception.

But how exactly do you move for a job when you don't even have the gas money to get you to Denver, let alone another state? We don;t even have to mention the rest of the expenses - and very few companies are offering to pay to help you move anymore, because face it, what made us unique commodities then makes us one in a crowd of hundreds anymore. It's an employer's market, not an employee's market right now.

What's the solution? Is there one? I can't answer that - I'm not an economist. The economists can't even answer this. I say prepare for a much different lifestyle, sooner than later.

Those jobs aren't coming back people. The 3rd World is developed now and they can compete equally with the 1st World. Not only labor rates, but many of the innovations are coming from there too. In fact the developed world just puts up more roadblocks with increased regulation. China & India has engineers often trained by US schools who go back and help their home countries. I know it will come as a shock, but get used to decades of stagnation, just like Japan has gone through in the last 20 years.

One problem I have with extending unemployment benefits beyond the unemployment insurance period is that it is grossly unfair to people who never qualified for unemployment insurance (ie indepedent contractors, people who had been working as temps, etc.) An awful lot of "real jobs" morphed into these more marginalized positions in the past decade or so and people couldn't find "real jobs" that had perks like unemployment insurance coverage. What are THEY supposed to do? I imagine they have even less resources than people who lost "real jobs", yet no one seems interested in helping independent contractors who have lost work. I guess what I feel about it is that before we extend and extend benefits to people who have been unemployed a long time maybe we ought to address the problems of people who got no such benefits AT ALL when their jobs ended?

A very emotional video about the unemployed...

[youtube:1vmb7402][/youtube:1vmb7402]

Local_Historian wrote: Pine - yes. One of my friends has been unemployed over a year now - and she still has to volunteer time, take classes, apply for jobs, get interviews, etc. She is here in Colorado.

Is it possible that your friend is getting both unemployment and TANF (Temporary Assistance for Needy Families, the new name for welfare)? I have a family member on TANF and another on Unemployment. According to them, the requirement for taking classes and volunteer time is a TANF requirement. Applying for jobs and getting interviews is required for Unemployment - per my family members, the unemployment office figures that job hunting should be a full-time job (and yes, he's applying for anything that he can find!)