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Jobless Payout Hits Record High

August 28, 2009

California – The Employment Development Department announced that the state has already handed out around $11 billion of the unemployment benefits in the first seven months of this year.

Around $80 million a day are now being handed to jobless workers.

In 2008, the total payouts for the year reached $8.1 billion which was then the biggest yearly handout of benefits.

The benefit extensions along with the extra $25 per week supposedly caused the recent increase in payouts for unemployment benefits. The weekly additional payment is approved by the Congress in February of this year.

Up to three extensions are sought by workers who are still looking for jobs after massive layoffs designed to resolve budget deficits in private and public sectors. Benefits for jobless workers range from around $65 up to $475 with the extra payment included.

First extension of unemployment benefits this year costs around $2.2 billion while the second accounts for at least $873 million and the third extension, $421 million. Second and third extensions were only available after July 2008.

The state’s fund is responsible in shouldering the first 26 weeks of unemployment benefits but it has been borrowing from the federal funds since it was zeroed in January. The extensions along with the weekly additional $25 are taken out of federal funds.

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