This weekend means an end to unemployment benefits for thousands of Californians.
Nearly a quarter-million people in California will get dropped from the state unemployment rolls starting tomorrow when the federal extension comes to an end. The LA Times is reporting that right now about 712,000 Californians are receiving unemployment benefits. The unemployment rate in California is also at 8.5%, but the number has been going down as the economy improves and new jobs are created.
The state's unemployment fund is tapped out and we owe the federal government about $9-billion for loans to cover the fund shortages.
So what will happen when those thousands of people lose their benefits?
Some would likely take lower wage positions that they've passed up so far while others may exit the job search altogether. Either way the unemployment rate goes down, which is good, but the expiring benefits would reduce spending and the overall economy would take a hit.
"In the last 12 months alone in California a little more than $4.9 billion in consumer spending has been supported," said Mitchell Hirsch.
Hirsch advocates for the working poor at the National Employment Law Project. About twelve thousand people in the Sacramento region will see their benefits expire.