3 mn unemployed Americans are to lose their benefits, despite government efforts

According to new analytics estimations, enormous amount of Americans are expected to lose unemployment benefits by the end of July. Thus far, over 3 million US unemployed people could be left without their benefits even as the government spends record amounts to compensate the jobless. 

The growing number of unemployed workers without benefits comes as Congress argues whether to again extend jobless benefits. So, the volume of Americans collecting benefits will slump from 10.5 million to 7 million at the end of July if Congress doesn't extend the payments.

Every week, about 400,000 Americans are exhausting their benefits, saving the government $2 billion since June and an estimated $34 billion through November.

Congress has extended unemployment benefits in every recession since the 1950s. The current extension — up to 99 weeks — far exceeds the previous longest extension of 65 weeks in 1975.

This extraordinary response has helped as many as 11 million people at one time, while driving the program's cost to an annual rate of $145 billion in the first quarter. That's more than double what was spent in any previous recession, after adjusting for inflation.

How unemployment benefits have changed:

• Higher payments. Cash benefits were paid at a record annual rate of $14,025 per person in the first quarter, about $2,000 more in inflation-adjusted dollars than when the recession started.

• Broader coverage. About 70% of unemployed people have gotten benefits in this recession, more than in earlier recessions.

• New benefits. A subsidy helps one in seven jobless workers keep medical insurance through former employers. Those benefits, worth about $3,000 for workers who qualify, end when a person's unemployment insurance expires.