Extension would be 4th since recession began

WASHINGTON (AP) — Congress is moving to extend unemployment benefits as about 1.3 million of the jobless are at risk of running out by the end of this year. But the extra coverage won’t initially be available in every state.

Under legislation approved by the House on Tuesday, benefits will be extended by 13 weeks in 27 states with unemployment rates above 8.5 percent. Residents in other states could become eligible if their jobless rates reach that level soon.

The extension would be the fourth since the recession began and is an acknowledgment that joblessness remains stubbornly high, despite signs of life in the economy.

Here are some questions and answers about how the extension of benefits works:

Q: Why is Congress extending unemployment insurance?

A: The labor market is the worst it has been in decades, with about six unemployed workers, on average, competing for every job opening, according to government data. That’s up from 1.7 per open job in December 2007, when the recession began.

Long-term unemployment has gotten particularly bad: About one-third of the jobless, or almost 5 million people, have been unemployed for six months or longer — just slightly less than the record percentage unemployed that long in July.

As a result, more than 400,000 people are expected to run out of unemployment insurance by the end of this month, according to estimates by the National Employment Law Project, an advocacy group. More than 1.3 million will do so by the end of the year.

Q: I’m about to run out of unemployment benefits — when will the extra 13 weeks kick in? And in what states?

A: The Senate has to approve the legislation first, and it could make changes. Senate Majority Leader Harry Reid, D-Nev., said Tuesday the chamber will move quickly, but it isn’t clear when.

Under the House bill, recipients in 27 states would immediately benefit: Alabama, Arizona, California, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Massachusetts, Maine, Michigan, Mississippi, Missouri, Nevada, New Jersey, North Carolina, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Washington, Wisconsin and West Virginia.

Residents in Washington, D.C., and Puerto Rico also would be eligible for the extra 13 weeks.

Q: Aren’t people running out of benefits in other states too? Why is it done this way?

A: Most extensions generally target high-unemployment states, the idea being that it is harder to find work in, for example, the 14 states with jobless rates above 10 percent, than in North or South Dakota, which are still below 5 percent.

However, more states may qualify as their jobless rates climb. Alaska is at 8.3 percent, for example, while Delaware and Connecticut are at 8.1 percent. States must average 8.5 percent for three months before the extra benefits would kick in.

In addition, congressional staff point out that other benefit extensions kick in at lower unemployment rates. States get an additional 13 weeks when their jobless rates top 6.5 percent, and another 7 weeks when unemployment hits 8 percent.

Still, the trigger has spurred some complaints. Rep. Charlie Melancon, a Louisiana Democrat, voted against the bill because his state wouldn’t be eligible, while neighboring Mississippi would.

Q: OK, so how long can people receive unemployment insurance?

A: The states pay for up to 26 weeks under the standard benefit program. The federal government is paying for a variety of extensions that have added between 20 and 53 weeks of coverage, depending on each state’s unemployment rate.