Is the Safety Net Catching Unemployed Families?

Receipt of unemployment benefits doubled between 2005 and 2009 as the number of low-income families experiencing unemployment surged. A September 2011 issue brief by the Urban Institute finds that food assistance programs and refundable tax credits played an important role in assisting these families while cash welfare benefits played a more limited role in unemployed families’ lives.

In 2009, 4 in 10 low-income families had a least one parent unemployed for at least three weeks. The brief credits the American Recovery and Reinvestment Act of 2009 for bolstering protections for unemployed families shaken by the economic downturn. ARRA extended and liberalized access to unemployment benefits and the Supplemental Nutrition Assistance Program (formerly known as food stamps). ARRA also provided states with additional funding for their Temporary and Needy Families programs. However, the extra help provided by the ARRA has mostly ended, leaving many families vulnerable.

The issue brief concludes that policies to strengthen unemployment insurance, public assistance and SNAP will be critical as unemployment remains high and low-income families continue to rely on the federal safety net for help.

Read the report.