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December 4, 2008

Laid Off Contractors Don't Get Unemployment

-- by Dave Johnson

Before reading this, realize that people who are called contractors instead of employees -- the first to get laid off as things get worse -- do not get unemployment benefits so they don't file claims for unemployment benefits. Jobless rolls at 26-year peak, factory orders drop

While first-time claims for benefits unexpectedly fell last week to 509,000 from 530,000, a four-week moving average of new claims, a better gauge of underlying labor trends, rose to 524,500, also a 26-year high.
The economy has shifted much more towards contractors, who do not get unemployment benefits. So this number of new claims understates the problem and does so much more than in previous recessions.

Also, the lack of benefits for contractors, including unemployment, means this recession will hit much harder on those unemployed than on previous unemployed. Extending unemployment benefits for 13 or 26 weeks will make no difference. What we need to do is ban this contracting scam and call an employee an employee.

Posted by Dave Johnson at December 4, 2008 12:09 PM


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