January 28, 2014 03:46 PM UTC

Colorado AFL-CIO Executive Director Mike Cerbo: Stopping unemployment benefits hurts Colorado's economy

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• by: dictionhound

The Denver Post-

Mike Cerbo
Guest Commentary

Unemployment benefits have historically been our nation’s most important safety net and lifeline for those who are out of work. Now they have expired for 20,000 Coloradans and the economic impact is already being felt.

The Great Recession hit close to home for many Colorado families. Since 2008, more than 24 million Americans have been able to rely on long-term unemployment insurance to stay on their feet until they found their next job and received their next paycheck.

Unfortunately, funding for this vital lifeline for jobless workers expired on Dec. 28 and benefits that kept millions out of poverty vanished. The failure to renew this benefit cost 20,000 Coloradans over $7 million during the first week that benefits lapsed, robbing families of a support system that remains essential to economic survival.

For the families of those who are out of work, modest unemployment benefits, averaging just $300 a week, represent the difference between a place to live and food on the table — or not.

When families can make ends meet using the bridge of unemployment benefits, studies show it creates jobs and can boost the economy. The Congressional Budget Office considers unemployment benefits to be one of the most important and effective economic stimulus programs. A decline in buying power can have significant impact on a weak economy.

By not extending unemployment benefits we are robbing businesses of customers and costing the country more than 240,000 jobs that would be saved by an extension, including over 3,500 jobs in Colorado. As the year goes on, the consequences will be even worse when benefits for 3.6 million Americans are scheduled to expire.

Recent congressional budget negotiations failed to help the millions of people who want to work but cannot find employment. Especially in times of need, Colorado working families must demand that Congress creates good jobs and restore the historic safety net of unemployment benefits. Members of Congress have a chance to redeem themselves by voting to restore unemployment benefits as they return to work this month.

Colorado families urge Congressman Mike Coffman to show leadership and vote to extend unemployment benefits for the hardest hit. We cannot afford for him not to.

Mike Cerbo is the executive director of the Colorado AFL-CIO and a former state legislator.