Lapse of Federal Unemployment Benefits Cost Economy Nearly $5 Billion in First Quarter of 2014

WASHINGTON – Ways and Means Committee Democrats today released a new state-by-state analysis that estimates that the U.S. economy has lost $4.7 billion in the first three months of the year due to the Dec. 28 expiration of federal Emergency Unemployment Compensation. More than 2.2 million Americans have now been cut off extended unemployment insurance because Republicans continue to block an extension of the program.

The state-by-state projections for the three-month period are based on the total federal unemployment insurance that Americans received in each state during the last three months of 2013. Nationwide, nearly 72,000 people are losing unemployment insurance, on average, every week – adding to the 2.2 million Americans who have already lost their benefits. The Senate on Thursday voted 65-34 to move forward on a bipartisan agreement to extend emergency unemployment insurance through May. Another procedural vote on the agreement is expected later today.

“Unemployment insurance has played a vital role in our economic recovery and the program’s expiration has drained billions of dollars from state economies during the last three months,” said Ways and Means Committee Ranking Member Sander Levin (D-MI). “Hundreds of thousands of jobs are at stake, as are the livelihoods of millions of Americans laid off through no fault of their own. The Senate is taking another bipartisan step on the long-road to extending this critical lifeline today and the House needs to also act to stand with job-seeking Americans.”

Estimated Lost Unemployment Benefits in the First Three Months of 2014 Due to the Shutdown of the Federal UI Program

Projections Based on EUC spending in last quarter of 2013

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