Weak Jobs Report Cited in Call for Extended Jobless Benefits
By ANNIE LOWREY
JAN. 10, 2014 - New York Times
WASHINGTON — A surprisingly
weak December jobs report has strengthened Democratsf hand in arguing for an
extension of emergency jobless benefits for the long-term unemployed.
But that argument looks unlikely to
translate into a policy victory, analysts said, with Republicans steadfast that
the economy needs more jobs, not more government largess.
On Friday, the Labor Department
said that the unemployment rate dropped to a five-year low of 6.7 percent. But
the economy added only 74,000 jobs, and for every American who found work, five
disappeared from the labor force.
Democrats are arguing that those
anemic numbers underscore the need for Washington to revive an
expired program that provided supplemental weeks of unemployment insurance
payments to workers, as long as they kept on applying for jobs.
In a statement, Jason L. Furman,
the chairman of the White Housefs Council of Economic Advisers, called long-term
unemployment gone of our nationfs most immediate and pressing challenges.h
He continued: gDespite an
abundance of evidence indicating that this challenge is far from solved,
Congress allowed extended unemployment insurance to lapse at the end of 2013,
cutting off a critical lifeline to those who lost a job through no fault of
their own and are still searching for work.h
But Republicans are arguing that
the report underscores that President Obamafs economic policies have failed, and
that Congress should focus on spurring businesses to hire, in part by reducing
regulatory requirements and cutting taxes.
gEvery American has a right to ask
the question eWhere are the jobs?' h said Speaker John A. Boehner of Ohio.
gInstead of making it easier to find a good-paying job, Washington has been more
focused on making it less difficult to live without one.h
At the end of the year, the
emergency federal program abruptly expired, cutting off about 1.3 million
workers who have been out of a job for more than six months. After the expiry,
the proportion of jobless Americans receiving unemployment insurance payments
fell to its lowest level in more than 50 years.
Democrats have sought to extend
the program, with three-month and 11-month proposals gaining traction in
Congress. Senate Republicans have indicated they would be willing to extend the
benefits, but only if the cost is offset with cuts from elsewhere in the
budget.
On Thursday, Senator Harry Reid of
Nevada dismissed
Republicansf amendments to an unemployment extension deal, dimming the
chances that a compromise will pass through the Senate. Even if a bill does pass
that chamber, it would almost certainly founder in the Republican-controlled
House.
Democrats have promised to
continue to push for the extension, saying that millions of jobless workers
still need the government lifeline. gThe safety net has been just ripped away,h
Mr. Reid said at a news conference this week. gThe economyfs improving, but not
for everybody.h
Economists said that it was likely
that some of the weakness in the December numbers might get revised away. The
Labor Department revised up its estimate of job growth in previous months, and
recent data on economic growth has been surprisingly strong.
gIt is difficult to determine how
much of this report is esignalf and how much is enoise,' h said Paul Edelstein
of IHS Global Insight, a research firm.
Whatever the short-term outlook,
the underlying performance of the economy continues to leave millions of
working-age people so discouraged that they no longer even bother to look for a
job.
gWhat wefve been seeing over the
past year is very steady, modest job growth,h said Erica L. Groshen, the
commissioner of labor statistics at the Labor Department, speaking before a
congressional panel on Friday. gYet therefs still a long ways to go.h