US jobless worry over likely benefit cuts

As emergency unemployment benefits across the US are due to expire by the end of 2012, nearly 400,000 long-term Californian jobless people are having serious concerns over the potential loss of their benefits.

The Los Angeles Times reported on Wednesday the emergency federal jobless assistance program that has provided many of the unemployed Americans with up to USD 450 per week for the past 4.5 years will expire on December 29, 2012 unless the US Congress and President Barack Obama can come to an agreement on averting the so-called “fiscal cliff” of scheduled Tax hikes and budget cuts, which includes many welfare benefits and public aid packages.
According to the report, nearly 2 million people across the US will face an interruption in jobless benefits, which are estimated to cost USD 30 billion in the upcoming year. Another million of unemployed workers are also expected to lose jobless benefits by March 2013.
The US federal budget disputes have raised concerns among many sectors of the state’s economy, including federal workers and aerospace employees in Southern California. However, the threat of slashing emergency benefits has been especially nerve-racking to those with no other means of financial support.
In California, the report adds, notices of the impending loss of benefits are due to be mailed out this week. The letters also offer information about other types of state support, including food stamps, welfare and healthcare programs for the poor.