Jobless benefits end soon for thousands

AUSTIN (KXAN) - With a computer, fax machine and printer, Dora Smith is a one-woman office.

The problem? Her only job is looking for one.

"Every job I apply for, even cleaning hotels, there are at least 10 other people also applying," said the 53-year-old, who has been out of a job for more than a year. "With the Internet, they get so many applications that they are just pulling names out of a hat - and I've never been lucky in the lottery."

Smith could face even more bad luck come Dec. 31. That is when thousands will lose their unemployment benefits and will be unable to apply for more, unless Congress passes a bill extending the benefits.

"Like everybody, I thought this extension that was signed into law in November was going to extend our benefits like halfway through next year," she said. "I'm now lobbying Congress to pass a  bill to extend it more for those of us who can't find work."

With a 7.2 percent unemployment rate in Austin, thousands are still looking for work. The Texas Workforce Commission has been paying out three times the amount of unemployment benefits as last year and the weekly allotment is higher than ever before.

"We're seeing people that were making six figures that are on unemployment and that are part of the long-term unemployed," said Ann Hatchitt, the communications director for the TWC. "But, we want them to know that Workforce Solutions and other state services can help them get back on their feet."

However, even Hatchitt admits the future for many is still uncertain as the deadline for those unemployment benefits is quickly approaching.

"A bill to extend that deadline has been introduced in the House," said Hatchitt. "So, we're just watching and waiting."

The extra demand for unemployment has also dried up the state's unemployment insurance coffer. Employers just got notice that they will be paying more into that fund per employee.An employer paying the minimum tax will pay $64.80 in tax per employee in 2010 compared with $23.40 in tax per employee in 2009.

"They were expecting this," said Hatchitt. "Something similar happened in 2004 when we experienced a dip in the economy."

All around, the news offers little hope that recovery is on the way - especially for those like Smith who keep running into roadblocks.

"My unemployment benefits stand between me and the street," she said as she faxed another resume to a company advertising on Craigslist .