MODULE 62: Long Term Unemployment
Core Module Issues:
• How long should unemployment benefits last?
• Should the duration of unemployment benefits be dramatically extended
during a recession?
Module Teaching Notes
When I wrote the original module, the recession had already prompted a significant extension of
unemployment benefits. At the time of this writing, a political compromise has been struck to extend the
benefits even further – beyond 99 weeks – in exchange for an extension of all of the “Bush tax cuts”.
There is a delicate dance going on. Many don’t want to appear heartless and leave laid off workers without
any source of income in the recession. Others say that surely people can find work in 99 weeks, and that in
any event, an indefinite extension of benefits is simply too costly.
The scenario in this module looks at issues related to hiring unemployed workers from a company’s
perspective. It may explain, at least in part, why some unemployed Americans are having difficulty finding
work. It should make for interesting discussion.
Discussion Points for Scenario Questions
1. Should a company give added consideration to applicants who are unemployed, less
consideration, or the same amount of consideration as currently employed workers? Is this
obligation different during a recession than it is during normal economic times?
A. SAME OR MORE – BUT WHAT IF BETTER CANDIDATES COULD BE
FOUND BY DIFFERENT MMETHODS?
2. Are workers ethically obligated to take a job if it pays substantially less than they usually
earn? Are workers obligated to take a job if it fails to make use of their skills and training?
A. YES – SHOULDN’T THEY BE ABLE TO DO WHAT THEY HAVE BEEN
TRAINED TO DO?
3. Rate your agreement with the statement “Extended unemployment benefits discourage
unemployed workers from taking job offers and seeking jobs in the first place”.
Completely Disagree ————————————————→ Completely Agree
1 ——-2 ——–3 ——- 4 ——-5 ——- 6 ——-7
A. STUDENTS WHO AGREE – BASED UPON WHAT EVIDENCE?
B. STUDENTS WHO DISAGREE – IF YOU COULD GET $18,000 FOR NOT
WORKING, OR $24,000 FOR WORKING, WOULD YOU REALLY TAKE THE
JOB?
4. Should the government continue to offer extended benefits for as long as 99 weeks to
unemployed workers during the recession? If not, what maximum number of weeks would you
set?
A. LONG TERM BENEFITS – IS IT FAIR TO ASK TAXPAYERS TO PAY FOR
INDEFINITE BENEFITS?
5. Should the government make it illegal to discriminate against unemployed workers in the
same way that it is already illegal to discriminate based on race, gender, and other factors? Or
would this lead to an unreasonable number of lawsuits brought by unemployed workers against
companies that had different reasons for hiring other candidates for positions?
A. MAKE IT ILLEGAL – WON’T THAT LEAD TO A LOT OF NEW LAWSUITS?