Unemployed Americans await Senate vote aimed at reinstituting jobless benefits to millions living on savings and credit
Legislation to reinstitute jobless benefits to unemployed Americans has been rejected a number of times by the members of the Senate who think that the money to fund the extension should come from spending cuts so as not to add to the national deficit. To date, Congress has been unable to reach a compromise on this issue. The House has already approved the measure.
The legislation will provide benefits for long-term unemployed individuals for up to 99 weeks.
The national unemployment rate dropped from 9.7 percent in May to 9.5 percent in June. Though the jobless rate has fallen the previous two months, the decline is mostly attributed to temporary government jobs provided by the Census Bureau, which have now been completed. Last month’s decline came as a result of more Americans dropping out of the labor market, rather than an overall improvement of the economy.
Many Americans depend on jobless benefits to meet their financial obligations. The delay in passing legislation has forced millions to rely on credit cards to pay for utilities, groceries and meet their mortgage loan requirements. As a result, more unemployed Americans may have difficulties paying off their mounting debt, which will undoubtedly affect their credit scores and ability to secure loans and competitive rates in the future.
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