Unemployment

Time-limited ARRA subsidies to laid-off workers for COBRA continuation coverage have substantially raised enrollment, even though layoffs sharply cut household income. The two largest data sets reviewed here showed average rises in take-up rates of 43 percent and 100 percent. However, rates varied widely across employers, and tax-subsidy claims to the IRS are thus far running much lower than expected. Coming closer to universal coverage for this population or for all Americans would require higher subsidy and possibly also a mandate to obtain coverage-two features that increase COBRA participation in a separate Massachusetts program for unemployed residents.

Widespread job loss and long spells of unemployment made 2009 the worst year in the labor market since the World War II era. And when jobless rates rise, higher poverty rates typically follow. Congress repeatedly extended unemployment insurance (UI) benefits during the recession, keeping many out-of-work Americans afloat, but others were unable to access benefits. High unemployment is expected to continue into 2010 and later—and ad hoc UI extensions will not counteract lengthy job separations or get Americans back to work. The unemployed, especially those out of work for a long time, need labor market policies that will provide long-term income support and speed reemployment.

Expert Harry Holzer testifies that 2009 and 2010 have been among the worst years ever recorded for teen unemployment, averaging 25 percent. Prospects for young African Americans are especially grim, with unemployment around 40 percent. But we can help youth into the labor market—during the "Great Recession" and beyond—through an aggressive policy agenda. Existing programs that could be more fully funded are YouthBuild, the Youth Service and Conservation Corps, Year Up, the National Guard Youth ChalleNGe, Gateways, and Youth Opportunities. While these would cost federal funds, the costs of not investing in our vulnerable youth will be far greater.

Key data points on the nation's unemployment rates, demographics of those looking for work, and historical trends.

Many of the economic stimulus provisions set out by the American Recovery and Reinvestment Act (ARRA) expire this year. But the joblessness and hardship that resulted from the 2008-2009 recession will not end so quickly. With these developments in mind, federal and state officials, leading policy experts, and economic researchers came together earlier this year to discuss what can be done to reduce poverty and economic suffering. The research and recommendations originally presented at the January 15 conference are now available in eight reports.