Unemployment Rate Down, Help for Job-Seekers Going Away

Despite Minnesota’s employers cutting nearly 14,000 jobs in November, the state’s unemployment rate still fell to 5.9%. Unfortunately, that number means thousands of jobless Minnesotans will become ineligible for long-term federal unemployment benefits that end when a state’s three-month unemployment rate falls below 6.5%.  Additionally, if Congress fails to act on extending long-term federal benefits an estimated 28,000 Minnesotans will lose a critical lifeline.

“Despite our lowering unemployment rate, there are still tens of thousands of Minnesotans who cannot find jobs that can support their families,” said Minnesota AFL-CIO President Shar Knutson. “For many middle class families, unemployment insurance has been the only thing keeping a roof over their heads and food on the table.”

Unemployment benefits are pumped back into the economy immediately, flowing to local grocery stores, gas stations, landlords and utilities. In Minnesota, the loss to communities could total $9,728,501 a week.

Added Knutson, “Congress needs to act now to extend unemployment insurance before it’s too late. Minnesota’s state legislators should also make renewing these benefits their first priority when they reconvene next month.”

To read stories of unemployed workers in Minnesota visit: http://uistories.aflcio.org/MN