The State of Unemployment: Worst Cities for Unemployment Benefits

23 May 2011.

Unacceptable unemployment figures is the top concern of EconomyWatch readers, and who’s to blame them? The US, as well as other countries hit badly by the 2008 financial crisis continue to struggle bringing unemployment levels back to pre-crisis levels. In the meantime, hundreds of thousands of people remain jobless and financially crippled with no sight of light at the end of the tunnel.

23 May 2011.

Unacceptable unemployment figures is the top concern of EconomyWatch readers, and who’s to blame them? The US, as well as other countries hit badly by the 2008 financial crisis continue to struggle bringing unemployment levels back to pre-crisis levels. In the meantime, hundreds of thousands of people remain jobless and financially crippled with no sight of light at the end of the tunnel.

Today, the Washington Post reported that states that have drained their unemployment insurance funds are even cutting back on unemployment benefits – in the hope the Federal Government will come to the rescue.

“A lot of states are basically saying, ‘Hey, why are we paying for these benefits when, in a recession, the federal government will step in?’” said Steve Woodbury, an economics professor at Michigan State University.

Among those states: Michigan, Missouri and Arkansas reduced the maximum number of weeks for unemployment benefits. Florida is set to follow suit.

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So far, 30 states have borrowed $44 billion from the Federal Government for unemployment benefits. States usually provide 26 weeks of benefits to laid-off workers. Michigan and Missouri have cut that down to 20 weeks. The benefits average $300 a week.

[quote]Some say that reliance on unemployment benefits is playing a role in the bills to cap benefits.[/quote]

But in the wake of continued high unemployment and fewer job opportunities in the marketplace– is that enough?

[quote]In comparison, Europeans, especially in Scandanavia and Switzerland pay out 80-90 percent of prior income for 10 months to four years. Denmark offers up to 90 percent of prior earnings for up to 48 months, while in Finland, average income workers take home about 85 percent of their prior wages for up to 17 months. The most stingy is Sweden that only provides 80 percent of earnings for 10 months. In addition, these countries have public offices that help job seekers find work. (Source: The Atlantic Council) [/quote]

Although it seems as though where you live in the US plays a big role in how much Uncle Sam dishes out to the unemployed. Here are the 10 worst cities for unemployment benefits in the US (Source: Forbes) :

1.     Los Angeles, California

• Maximum Benefit: $450 per week
• Cost of Living: $98,332 per year
• Payment as percentage of living cost: 23.8%
• Unemployment rate: 5.4%

2.     Nashville, Tennesse

• Maximum Benefit: $275 per week
• Cost of Living: $60,844 per year
• Payment as percentage of living cost: 23.5%
• Unemployment rate: 4.3%

3.     Kansas City, Kansas

• Maximum Benefit: $280 per week
• Cost of Living: $62,872 per year
• Payment as percentage of living cost: 23.1%
• Unemployment rate: 4.6%

4.     Tampa, Florida

• Maximum Benefit: $275 per week
• Cost of Living: $64,835 per year
• Payment as percentage of living cost: 22%
• Unemployment rate: 4.9%

5.     Orlando, Florida

• Maximum Benefit: $275 per week
• Cost of Living: $66,787 per year
• Payment as percentage of living cost: 21.4%
• Unemployment rate: 4.4%

6.     Washington, D.C

• Maximum Benefit: $359 per week
• Cost of Living: $90,285 per year
• Payment as percentage of living cost: 20.7%
• Unemployment rate: 3.1%

7.     San Francisco, California

• Maximum Benefit: $450 per week
• Cost of Living: $113,576 per year
• Payment as percentage of living cost: 20.6%
• Unemployment rate: 4.8%

8.     Phoenix, Arizona

• Maximum Benefit: $240 per week
• Cost of Living: $66,470 per year
• Payment as percentage of living cost: 18.7%
• Unemployment rate: 3.2 %

9.     Miami, Florida

• Maximum Benefit: $275 per week
• Cost of Living: $77,069 per year
• Payment as percentage of living cost: 18.5%
• Unemployment rate: 4.5 %

10. New York, N.Y

• Maximum Benefit: $405 per week
• Cost of Living: $122,342 per year
• Payment as percentage of living cost: 17.2%
• Unemployment rate: 4.4 %
  

Get more information about unemployment on EconomyWatch and check out our Economics Database for World Unemployment Rate Statistics.

 

Liz Zuliani

EconomyWatch.com