How extensions to unemployment insurance benefits helped the economy

Extended unemployment insurance benefits have played a key role in keeping Colorado families and the economy afloat in the midst of the Great Recession. That's the conclusions of a paper the Colorado Fiscal Policy Institute issued near the end of last month. Check out the full paper, or if you have time only for the takeaway:

• From July 2008 to July 2010, Colorado received $1.5 billion from the federal government to pay for extensions of unemployment benefits.
• Combined, those extensions added 86 weeks of benefits to the standard 26 weeks.
• The extensions were entirely federally funded.
• The additional $1.5 billion in extended benefits for Coloradans translates to $1.6 billion worth of in-state commerce and 12,000 jobs.

And here's a graph showing the state and national unemployment rates during the past decade, along with markers showing the two most recent recessions and the beginning of unemployment insurance benefits extensions. Click the image for a larger view.