90,000 Illinois residents to lose unemployment

December 13, 2012

Burt Lum/Flickr
Eight unemployment offices in Chicago recently closed.

90,000 people in Illinois will lose extended unemployment compensation if an emergency federal program is not renewed by the end of the year.

Greg Rivara with The Illinois Department of Employment Security (IDES) says they’ve been trying to make sure all their clients know about the possible change.

"We’ve had some individuals ask if there is something they can appeal to or apply for. No there is not," Rivara said.

Rivara said the end of emergency unemployment compensation could also impact unemployment services overall.

“IDES is looking for a 20 percent cut. Up to 44 million dollars,” Rivara said.

IDES has already closed eight unemployment offices, but may need to close more if the program is allowed to expire.

Illinois U.S. Senator Dick Durbin said the change could also impact the economy overall.

“When we asked the congressional office what is the single best thing we can do in Washington to pump life into this economy? Unemployment compensation," Durbin said. "The people who get it have nothing. So when they receive an unemployment check, they spend it.”

The Economic Policy Institute estimates that 400,000 jobs would be lost because of decreased spending. 

Categories