Debate over $600 a week in jobless aid to intensify as unemployment claims rise

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Debate over $600 a week in jobless aid to intensify as unemployment claims rise
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Democrats have proposed keeping the $600-a-week payments through January.

Madelyn Figgers, 26, lost her job as a server in March at one of the restaurants Conway operates, Lunch and Supper. Figgers said the extra $600 in unemployment benefits has allowed her to keep up with all her bills and rent.Figgers acknowledged that the extra money would make her hesitant to return to her old job, particularly if it was for fewer hours than she had before. But she also knows that legally she is required to accept an offer for work, or risk losing all her benefits.

Research by University of Chicago economist Peter Ganong and two of his colleagues has found that, because of the extra $600, two-thirds of laid-off workers are receiving benefits that exceed the paychecks they previously earned from working. One-fifth could receive at least twice their previous pay.

But he also thinks that Congress should keep an enhanced benefit in place because more jobless aid is crucial in the midst of a deep recession. Jobless benefits enable recipients to pay for necessities and cover more bills, including, crucially, their rent or a mortgage, Ganong said.

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