Trying to Cope When Jobless Benefits Run Out

One of the government's biggest moves to help individuals during the economic crisis has been the extension of unemployment benefits. But as the recession drags on, now even those extensions are running out for many -- bringing with it a whole new level of economic stress.

How are people coping when the unemployment checks dry up? For some it means hard choices, like dipping into their retirement savings, selling the family car or moving in with their parents.

Many people find that unemployment benefits aren’t even enough to pay the bills -- laid-off workers receive on average $295.05 a week, according to the Department of Labor -- but it definitely helps them get by.

Yet, as of April, almost half of all laid off workers collecting state unemployment insurance exhausted their benefits, the highest rate since records were first kept in 1948, according to National Employment Law Project (NELP). Furthermore, many job seekers are taking longer to find work. In April, unemployed people needed an average of 21 weeks to secure a job compared with fewer than 17 weeks in April 2006, according to the Bureau of Labor Statistics.

Fortunately, unemployment benefits last a while before running out. Up until mid-2008, benefits in most states ran up to 26 weeks. But thanks to a 13-week extension in July which became 20 weeks in November (as well as another 13 weeks for states with an unemployment rate of 6% or more for more than three months), those who get laid off can qualify for up to 59 weeks of benefits. Additionally, when President Barack Obama signed the stimulus plan in February, it enabled the federal government to pay for extended benefits of up to 20 more weeks, bringing the potential maximum of jobless benefits up to 79 weeks.

Not everyone can qualify for the maximum amount, however. Each state has a formula that calculates how many weeks of benefits an unemployed worker is entitled to, based in part on the state’s unemployment rate and an individual’s work history and earnings, says Rick McHugh, staff attorney with NELP. And in many cases, working part time may disqualify a person from receiving benefits.

SmartMoney.com spoke with unemployed workers who have seen their benefits run out. Here's what they say they're doing to make ends meet: