Over one million jobless Americans to lose benefits

Washington – More than a million Americans will lose their unemployment benefits after an emergency federal programme expired on Saturday.

Sunday, December 29, 2013

Washington – More than a million Americans will lose their unemployment benefits after an emergency federal programme expired on Saturday.Lawmakers failed to agree on an extension of the scheme before the US Congress began its winter recess.Former President George W. Bush introduced the assistance plan in 2008 at the start of the recession.Under the programme, jobless people received an average monthly stipend of $1,166 for up to 73 weeks.The White House says the benefits have kept millions of families out of poverty, but many Republicans argue that the scheme’s annual $25b price tag is too expensive.The stalemate comes two months after a budget fight in the US Congress led to the partial shutdown of the government.An estimated 1.3 million people will initially be cut off with the end of the "emergency unemployment compensation”, US officials say.Millions more could be affected next year after they lose state benefits, which in many states expire after six months. The US unemployment rate fell to a five-year low of 7 per cent in November, according to the US Labour Department. The long-term jobless rate remains a problem for the economy, with some 4.1 million Americans currently out of work for six months or longer.