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Lower Benefits, Lower Unemployment Rate

average-monthly-job-growthDuring the depression of 2008 the state of California approved funding to those who were faced with hard times and help them get through a few rough years until they bounced back on their feet. After three years of helping out the community, Democrats believed it was time to start decreasing unemployment benefits since many of the unemployed were citizens from the 2008 crash.

According to the National Desert News, “The average period of unemployment benefit coverage dropped from 53 weeks of coverage to 25 weeks after the federal benefits program was cut.” By cutting the benefit coverage in half, the hopes were the people collecting unemployment would be enticed to look for employment. When this was implemented in 2011 the number of unemployed drastically fell, and number of jobs by Californian residents grew.

Since unemployment rates vary from state to state, California was able to make this change even though it did not sit well with the residents collecting unemployment since the average around the nation was just around 37 weeks of coverage. The democrats did not propose the change of benefits to strong arm their residents or make their lives that much more difficult, but to pick up and strengthen the economy of California. The more jobs that would be created, the better the economy would be from facing another disaster similar to the one faced in 2008.

Even though people may be upset about the drop in benefits, they cannot argue with the results. “Average employment growth was about 25 percent higher in 2014 than in the best of several preceding years.” Employment rates are rising and states taking this approach nationwide can see similar results. In 2014 alone, 1.8 million new jobs were created.

For more information about Araceli, please head over to her official website.

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