Unemployment in the District declined slightly in November, a hopeful sign that perhaps we have reached the bottom of the economic downturn and are moving toward recovery.
Data released Friday by the U.S. Bureau of Labor Statistics reported an 11.8 percent unemployment rate in the District last month, a drop of one-tenth of a percentage from October. The national unemployment rate in November was 10 percent, two-tenths of a percent drop from October.
It is a sign of how bad the economy has gotten when we celebrate the fact that unemployment has stopped increasing. Yet it’s important to keep in mind that nearly one-out-of-eight DC residents are still out of work despite actively searching for a job’the highest level since records have been kept.
It is a terrible fact of recessions that just as residents’ needs are increasing, the ability of the government to respond to these needs is decreasing. We need to make sure we are not penny wise and pound foolish as we address this difficult situation. This includes making sure there’s money in the budget next year for our out-of-work neighbors to keep food on the table and pay their rent while they search aggressively for a job. Funding for education and workforce development is vitally important to maintain as well.
Economic research shows unemployment insurance is particularly effective in stabilizing and stimulating the local economy during a downturn. A study conducted by Mark Zandi of moodyseconomy.com estimated that every $1 spent on increased unemployment benefits spurred economic activity by $1.63. That’s because the assistance is used for food, rent, and other day-to-day expenses, which goes directly back into the coffers of local businesses.
The DC Council is considering two bills that will not only give a boost to unemployed workers but to the District itself at this critical time. One bill, which will give a $15 per dependent allowance and extend benefits for those enrolled in training, will allow the District to collect $18 million from the federal government as part of the stimulus package. The other bill will increase the weekly maximum benefit to $379 a week, from $359. Currently, this is the lowest maximum benefit rate in the metropolitan area. Virginia has a maximum of $378, and Maryland’s is $380.
These are smart ways to help plan for a more productive and prosperous DC.
