Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Welfare Rolls Soar Along With Unemployment

Many make shift as jobless benefits run out

By Matt Cantor, Newser Staff

Posted Jun 22, 2009 7:48 AM CDT

(Newser) – Welfare rolls are on the rise nationwide for the first time since President Clinton signed a bill overhauling the system in 1996, the Wall Street Journal reports. Welfare recipients’ ranks fell in some areas at the beginning of the recession, but now 23 of the 30 biggest US states are seeing an increase as residents' unemployment compensation runs out.

States with the highest unemployment rates are seeing the biggest jump in welfare rolls. Oregon’s numbers have risen 27%, South Carolina’s 23%, and California’s 10%. The number of people on food stamps rises first because qualification is easier; welfare stats signal more entrenched difficulty. It’s “the first real test” for the altered welfare system, said an analyst—and “this is exactly what should happen,” said one involved in the 1996 law.

Carolina Fuentes talks with a worker at the Sacramento county welfare office, as her daughter, Katherine, 5, waits, in Sacramento, Calif., Monday, June 1, 2009. (AP Photo/Rich Pedroncelli)

Former President Bill Clinton speaks at a fundraising dinner for the Indiana Democratic Party in Indianapolis, Saturday, June 20, 2009. (AP Photo/Darron Cummings)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Jobless Claims Sink to 3-Year Low

It was a surprise drop, notes Bloomberg

(NEWSER) - Unexpected visit from the in-laws: bad news. Unexpected drop in jobless claims: very good news. Though Bloomberg reports that economists anticipated that the number of Americans filing first-time jobless claims would hold steady around 390,000, it instead dropped by 19,000 last week, to 366,000. The last time it was that low? May 2008, a long-ago era when Jennifer Aniston was dating John Mayer and Newser thought "twittering" was an appropriate verb. Reuters notes that the number is approaching the 350,000 mark, one that analysts consider a sign of "more sustained improvement in the job market." Stocks rose on the news, notes Marketwatch . More»

New GOP Push: No Jobless Benefits for Rich

They also want to keep millionaires off food stamps

(NEWSER) - The GOP has found some millionaires it won't stand up for: Millionaires on food stamps. House Republicans have added a measure to their payroll tax holiday bill that would cut off food stamps and unemployment benefits for people with a gross adjusted income of $1 million or more, the New York Times reports. Of course, there aren't actually any millionaires receiving food stamps, which are already means-tested. But some do collect unemployment benefits, which in 2009 cost the government almost $21 million. More»

Rare Good News: Jobless Claims Fall

...below the all-important 400K line, to 398K

(NEWSER) - Here’s something you don’t see every day: good news from the labor market. New jobless claims fell by 24,000 in the week ending on July 23, to 398,000, the Labor Department announced today. That’s the lowest level of job loss since April, and significantly better than the 415,000 that a Bloomberg survey of economists predicted. It’s especially significant, the Atlantic explains, because anything below the 400,000 line is considered an indicator of “stable job growth.” The Dow, which has fallen for four straight days, rose on the news; it's currently up 76 points. More»

Feds Hit States With Interest on Unemployment Loans

Tax-free provision ended with first stimulus

(NEWSER) - With most states already swinging in the recessionary winds, more bad news—many will have to start paying interest on the money they borrow to pay unemployment benefits. When jobless levels hit the unthinkable, with some states seeing 14%-15%, many had to go cap in hand to the feds to cover the gap, ProPublica reports. Those loans, as part of the original stimulus, were interest-free, but that provision has expired and efforts to put a new one in the tax-cut deal failed. More»

Jobless Claims Hit 9-Month High

Reach 500K mark as employers again cut back

(AP) - New applications for unemployment insurance reached the half-million mark last week for the first time since November, a sign that employers are likely cutting jobs again as the economy slows. The Labor Department said today that initial claims for jobless benefits rose by 12,000 last week to 500,000, the fourth increase in the past five weeks. Wall Street economists forecast that claims would drop. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Welfare Rolls Soar Along With Unemployment

Many make shift as jobless benefits run out

OTHER STORIES ON OUR RADAR

Bill Clinton • Clinton administration • unemployment • jobless claims • unemployment benefits • welfare • food stamps • public assistance • jobless • welfare reform

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Jobless Claims Sink to 3-Year Low

It was a surprise drop, notes Bloomberg

New GOP Push: No Jobless Benefits for Rich

They also want to keep millionaires off food stamps

Rare Good News: Jobless Claims Fall

...below the all-important 400K line, to 398K

Feds Hit States With Interest on Unemployment Loans

Tax-free provision ended with first stimulus

Jobless Claims Hit 9-Month High

Reach 500K mark as employers again cut back

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

Welfare Rolls Soar Along With Unemployment

Many make shift as jobless benefits run out

Bookmark & Share

OTHER STORIES ON OUR RADAR

Bill Clinton • Clinton administration • unemployment • jobless claims • unemployment benefits • welfare • food stamps • public assistance • jobless • welfare reform

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Jobless Claims Sink to 3-Year Low

It was a surprise drop, notes Bloomberg

New GOP Push: No Jobless Benefits for Rich

They also want to keep millionaires off food stamps

Rare Good News: Jobless Claims Fall

...below the all-important 400K line, to 398K

Feds Hit States With Interest on Unemployment Loans

Tax-free provision ended with first stimulus

Jobless Claims Hit 9-Month High

Reach 500K mark as employers again cut back

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?