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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Day: October 7, 2011

Joblessness and Unemployment

  • Some unemployed find fault in extension of jobless benefits, By Shaila Dewan, October 6, 2011, New York Times: “Dan Tolleson, a researcher and writer with a Ph.D. in politics, has been out of work since 2009, except for brief stints as a driver. Still, he opposes President Obama’s call for Congress to renew extensions on unemployment benefits. ‘They’re going to end up spending more money on unemployment benefits, while less money is coming in on tax returns,’ he said, suggesting that the government should focus on measures that might encourage businesses to hire. ‘Far better to relax some of these outrageous regulations.’ Make no mistake – Mr. Tolleson, 54, has collected unemployment checks, saying he had little choice. But his objection to a policy that would probably benefit him shows just how divisive the question has become of providing a bigger safety net to the long-term jobless, a common strategy in recessions…”
  • Long-Term joblessness likely to spur unemployment extension fight, By Sara Murray, October 7, 2011, Wall Street Journal: “One of the most persistent hangovers from this prolonged downturn will likely be the nation’s crop of long-term unemployed. The number of Americans out of work for more than six months rose by 208,000 to 6.2 million in September, the Labor Department said. Some 44.6% of all of those who are unemployed have been sidelined for at least six months. Most of those individuals – nearly 4.4 million – have been out of work for a least a year. Long-term unemployment has been more pervasive during this recession and anemic recovery than any other point in history, according to records dating back to the 1940s…”
  • Adding jobs, but not many, U.S. economy seems to idle, By Motoko Rich, October 7, 2011, New York Times: “As an increasing number of economists warned of a possible dip back into recession, the Labor Department said Friday that American employers added 103,000 net new jobs in September, indicating that the economy is at least not weakening for now. The government also revised its estimates upward for the previous two months, suggesting that job growth in July and August had been better than originally reported. Although the numbers staved off the bleakest forecasts for now, the Labor Department’s monthly snapshot highlighted the challenges for President Obama as he continues to press a balky Congress to pass his jobs bill…”
  • Businesses add jobs, but unemployment rate unchanged in September, By Don Lee, October 7, 2011, Los Angeles Times: “Hiring picked up moderately in September as employers added 103,000 jobs, the government said Friday, easing fears among economists that the nation was hurtling toward another recession. But the job growth wasn’t strong enough to lower the unemployment rate, which remained stuck at 9.1% for the third straight month. Analysts say about 125,000 net new jobs are needed every month to keep pace with the population growth and maintain the current jobless rate. While construction employment rebounded and retailers hired more workers last month, manufacturing payrolls shrank again and government continued its sharp cutbacks. Also, the number of part-time workers who want full-time hours rose sharply over the month, to 9.3 million, from 8.8 million in August. Including these workers and others who have quit looking because they don’t see hope of getting hired, the share of unemployed and underemployed among the U.S. workforce rose to 16.5% in September, up from 16.2% in the prior month and 15.8% in May…”

Child Disability and Poverty – UK

  • Four-in-10 disabled children ‘in poverty’, By Angela Harrison, October 6, 2011, BBC News: “Four in 10 disabled children in the UK live ‘in poverty’, according to the Children’s Society. In the population as a whole, about one-in-three children lives in poverty. The charity is calling on the government to rethink planned changes to welfare benefits in the UK, saying more than 100,000 disabled children could lose up to £27 a week. The government says the most severely disabled children will receive more money under the changes. Its Welfare Reform Bill is nearing its final stage in parliament before it becomes law. From 2013, it will bring in a single monthly payment – known as a Universal Credit – which will replace a range of benefits…”
  • Four in 10 disabled young living in poverty, report says, By Randeep Ramesh, October 6, 2011, The Guardian: “Four in 10 disabled young people in England are living in poverty, amounting to a ‘staggering’ 320,000 children. And the figure will rise because of government cuts to welfare payments, according to a report by The Children’s Society. The charity’s analysis looks for the first time at the additional costs of caring for a child who might be paraplegic, infirm or seriously physically incapacitated, and concludes that the official poverty rates understate the number of disabled children in penury by a total of 32,000. Counting on the basis of a disabled child living in a household with a disabled adult, the figure for those existing in poverty rose to 49%. The Children’s Society says that benefit changes in the controversial welfare reform bill, now being considered in the House of Lords, will cause the disability component of child tax-credit to drop from £54 to £27 a week…”

Welfare Cuts – Michigan

  • Delay in welfare cuts could cost Michigan $2.5 million, By Karen Bouffard, October 6, 2011, Detroit News: “The delay in ending welfare to nearly 41,000 Michiganians could cost the state at least $2.5 million. The Department of Human Services must rewrite and resend letters to everyone who was scheduled to lose their cash assistance on Saturday after U.S. District Judge Paul Borman on Tuesday blocked the cutoff of benefits. After the letters are sent, clients have 10 days to appeal the move. ‘We are working diligently to comply with Judge Borman’s order,’ DHS spokeswoman Colleen Rosso said Wednesday. ‘I anticipate that the notices will be mailed in the coming days, but will have a more definitive time frame (today).’ Republicans, who have control of the Legislature and the Governor’s Office, figured savings from the cuts into the budget for the fiscal year that started Oct. 1…”
  • Judge delays welfare cuts, says state didn’t follow the rules, By Kathleen Gray, October 4, 2011, Detroit Free Press: “A federal judge ordered the state Tuesday to temporarily stop enforcing a new law ending cash assistance to 11,162 poor Michigan families who have collected welfare for at least 48.months. The state did a poor job of notifying the recipients, giving them less than three weeks to plan for the end of assistance, Borman wrote in his opinion, granting a temporary restraining order against the cuts. The state passed a law in July that capped cash assistance at 48 months during a recipient’s lifetime. It was supposed to take affect Oct. 1, but U.S. District Judge Paul Borman in Detroit delayed the implementation until he ruled. The 11,162 families represent about 40,000 people, two-thirds of whom are children or teenagers…”