The United States went through its longest and, by most measures, worst economic recession since the Great Depression between December 2007 and June 2009 which swelled the ranks of the unemployed to historically high numbers. Though the economy has begun to grow, it remains weak and economists predict that it will be years before the unemployment rate returns to pre-recession levels.
This policy brief explains some of the ways that the recession affected the country in general and Virginia in particular, and why Congress needs to extend the temporary unemployment insurance benefits that are currently scheduled to expire on January 3.
If the program is not extended, the impact on Virginia would be significant and devastating for many families. A maximum of 73 weeks of unemployment insurance benefits are currently available for unemployed workers in Virginia, but without extension of the federal emergency benefits this number will shrink to only 26 weeks. Many of the families still struggling to find jobs rely on UI benefits to pay for housing, transportation, groceries and other necessities and would have a much harder time paying their bills without those benefits. The National Employment Law Project estimates that 15,600 unemployed workers will be cut off from unemployment insurance in Virginia this January if the federal program is not extended.