Eligibility Period for Unemployment Benefits Factor in High Unemployment


( – The Organization for Economic Cooperation and Development, a international group of economists based in France, says the slow economic recovery and record long-term unemployment in the United States may lead to chronic “structural” unemployment – the type of unemployment that is always present and immune to periods of boom or bust.

OECD economists, in a new report, blamed two factors for the persistently-high, long-term unemployment in the U.S. — poorly designed government benefits and a poor economic recovery.

“The increased duration (of high unemployment) reflects the slow recovery and may also owe, in part, to the lengthened eligibility period for unemployment benefits,” the report said.

In other words, a lack of available jobs for those laid-off during the recession and extraordinarily generous government benefits combine to keep people out of the labor force and even encourage some to leave for good.

The group also called for reforms to federal disability assistance payments, citing the fact that many long-term unemployed have claimed to be disabled in order to receive further federal benefits. OECD criticized the federal government for allowing this to happen, saying that it could lead to greater long-term unemployment.

Read More at CNS News. By Matt Cover.


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