Although there are signs of economic recovery, the job market is still sluggish. The unemployment rate has risen to 9.8%, and analysts suggest that it may reach as high as 10% before employers start hiring again.
Given the situation, plans for an unemployment benefits extension have been presented both in the House and in the Senate. Just last month, the House approved a plan that would provide unemployment aid for an additional 13 weeks to 27 states, the District of Columbia and Puerto Rico.
The proposal was met with criticism and opposition, notably from senators representing states not covered by the plan. They questioned the fairness of providing additional unemployment compensation for workers only in selected states and not in others.
Senate Democrats, however, have come up with an alternate proposal that would provide an unemployment benefits extension of up to 14 weeks to all 50 states while states with unemployment rates of at least 8.5% will benefit from an additional six weeks extension on top of the 14 weeks. In addition, the proposal also contains a provision that will allow families receiving food stamps benefits to maintain their eligibility, even if they are receiving an additional $25 per week in unemployment insurance benefits.
The plan is still being deliberated after Republicans cited that they needed more time to assess the costs of the proposal and offer amendments.
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