Emergency Unemployment Compensation

FN: Of the 14.462 million people that officially count as unemployed (UNEMPLOY) 4.965 or 34% have been unemployed for more than 27 weeks (UEMP27OV).

The previous record of about 2.900 million unemployed for more than 27 weeks was reached in the early 1980's during a nasty economic period of stagflation.

The reason being unemployed for 27 weeks is so important is because normal unemployment benefits last 26 weeks (United States Department of Labor). After 26 weeks, the benefits stop.

As more and more people approached the cut off, the government implemented an Extended Benefits program, adding 13 additional weeks that can be topped off by individual states with an additional 7. (United States Department of Labor - Extended Benefits)

The unemployment data released today, showed a 'surprise' increase in Initial Claims from last week to 558 000. While initial claims are still trending in the wrong direction, more important is the number of unemployed on Extended Benefits and those claiming Emergency Unemployment Compensation:

"States reported 2,785,372 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending July 25, an increase of 30,981 from the prior week. There were 747,707 claimants in the comparable week in 2008. EUC weekly claims include both first and second tier activity."

So it would appear that of the 4.965 million who have been unemployed for longer than 27 weeks, only 2.785 million have been able to qualify for EUC extended benefits, or 56%. That leaves 2.18 million with absolutely ZERO income of any kind from anywhere.