The department of Workforce Development announced on March 9ththe unemployment rate for the State of Wisconsin has dropped to 7.4 percent. The unemployment rate encompasses Wisconsin residents who are available for and actively seeking employment.
The nationwide rate is 9.8 percent. Without seasonal adjustment the state rate would be 8.2 percent.
The total number of jobs in Wisconsin increased by 6,200 seasonally adjusted. The private sector added 10,100 jobs while the public sector lost 3,900 jobs. 3600 of those jobs were at the state level.
Compared to a year ago, the jobs total increased by 37,400 seasonally adjusted.
Many of those unemployed have been out of work long term and are on extended benefits. Typically unemployment benefits last 26 weeks. Those living in high unemployment states get an extra 13 weeks for 39 weeks. Benefits are about 25 to 40 percent of the workers weekly income before unemployment.
With this recession Congress has extended unemployment benefits to 99 weeks for those workers in states with high unemployment. Wisconsin does not benefit from this, but we are paying for this program with our taxes.
The Heritage Foundation Senior Policy Analyst for Labor Economics had the following findings about the effect of extended benefits:
- Higher unemployment: By reducing the need to look for work, extended benefits cause some unemployed to take longer to find work.
- Longer unemployment: People stay unemployed longer when benefits are there.
- Income Reduction- other family income is reduced. Wives earnings fell between 36 cents and 73 cents for each dollar of unemployment benefits.
Extended benefits keep workers out of the labor force. They are not paying taxes which contribute to our federal budget deficit. The extended benefits are also paid for with borrowed money further adding to the deficit. We will be paying for these benefits for years.
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