Good news and bad news for job seekers

WASHINGTON, DC -- The good news is for three months running, the labor market has again been generating significant numbers of new jobs. The bad news is new Labor Department data show that over the same three months an exceptionally large number of jobless workers exhausted their regular unemployment benefits and did not qualify for further federal aid.

The Temporary Extended Unemployment Compensation (TEUC) program was created in March 2002 to provide up to 13 weeks of federally funded unemployment benefits to those who have run out of regular unemployment benefits. Individuals who have exhausted their regular benefits since December 20, 2003 have not been eligible for TEUC aid. The lingering high level of exhaustees suggests that the program was turned off too soon.

Analysis indicates that more than two million unemployed workers have exhausted their regular benefits and are without further federal unemployment aid from when the TEUC program ended through the end of June. The next few months are also likely to see an exceptionally large number of exhaustees. Projections suggest that in July, August, and September of this year, the number of jobless workers without aid will set records for those particular months.