Extending Unemployment Benefits Would Create 300,000 Jobs, Report Says
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
WASHINGTON -- Extending the current level of long-term unemployment benefits for another year would add 300,000 jobs to the economy, according to a report from the Congressional Budget Office.
The analysis released Wednesday from the nonpartisan office estimates that keeping jobless benefits would cost the government $30 billion. But it would also lead to more spending by the unemployed, boosting demand for goods and services and creating new jobs.
Federal long-term unemployment benefits are set to expire on Dec. 29 for more than 2 million workers unless Congress approves an extension. Democrats have called for reauthorization of extended benefits, but Republicans generally oppose more jobless aid without additional spending cuts to offset the cost.
Regular jobless benefits generally last up to 26 weeks for eligible workers who lose their jobs and are seeking employment. Since the recession began in 2008, the federal government has offered up to 47 weeks of additional benefits.
The CBO report found that for every dollar of jobless benefits that the unemployed spend, there is a $1.10 boost to the economy.
Any deal on reauthorizing some or all extended unemployment benefits is likely to be part of ongoing negotiations over avoiding the ''fiscal cliff'' tax increases and spending cuts that could send the economy back into recession.
Don't Miss: Companies Hiring Now
More From AOL Jobs
- Unemployment Claims Drop, As Sandy's Effects Wear Off
- Is Outsourcing Good For The Economy -- And Workers?
- Is Fracking A Solution To The Jobs Crisis?