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1.8 million jobless in U.S. face loss of unemployment benefits

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Nearly 1.8 million jobless Americans could lose their unemployment insurance benefits at year’s end unless Congress approves President Obama’s proposal to reauthorize the federal program through next year, according to the National Employment Law Project.

Among those losing benefits would be about 305,400 in California, the most of any state.

The advocacy group warned Tuesday that a cut in unemployment benefits would damage workers, business owners and the U.S. economy.

“For millions of out-of-work Americans hanging on by a thread, unemployment insurance is the only thing preventing a free-fall into destitution and despair,” said Christine Owens, the group’s executive director. “For struggling businesses and the halting economy, unemployment insurance is what’s preserving consumer spending at a moment we need it most. Withdrawing this crucial stimulus would likely tip the nation back into recession.”

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With the nation’s unemployment rate stuck at 9.1%, the National Employment Law Project is urging Congress to act quickly to extend jobless benefits. The last time federal lawmakers cut unemployment benefits during a time of high unemployment was in 1985, when the rate was 7.2%, the group said.

Without an extension, about 70,600 Californians would see their 26 weeks of regular, state-paid checks run out at the end of the year. An additional 122,500 would stop getting federal emergency unemployment compensation and 112,300 would lose special extended federal benefits.

Other states with large numbers of people on unemployment insurance include Florida, New York, Texas and New Jersey.

marc.lifsher@latimes.com

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