Benefits for the unemployed have disappeared with the start of the New Year. Without an emergency aid program, Congress has no means of assisting the 1.3 million Americans without jobs. There is a possibility that these workers will apply for disability insurance, but there’s little evidence to show this will occur. The latest reports show that people haven’t been turning to disability after their unemployment benefits have lapsed. So, what will they do?
The latest idea is that workers will use disability as a safety net when unemployment runs out posing a huge predicament for the economy. Multiple states have cut back unemployment benefits during the recession, without noticing an increased volume in disability applications. In fact, disability applications tend to increase when unemployment benefits became more generous. But, with around 2 million added to the unemployment bucket, there’s a great chance many of them will drop out of the workforce altogether.