US Labor Department study underscores positive impact of unemployment insurance

WASHINGTON — On November 11, 2010 The U.S. Department of Labor announced the findings of a multi-year study of the impact of the Unemployment Insurance program in stabilizing the economy during a deep recession. The study was commissioned by the department and undertaken by IMPAQ International LLC and the Urban Institute.

Using UI data and the proprietary economic model from Moody's Economy.com, researchers studied how gross domestic product, employment and other economic variables would have performed without the increase in regular UI benefits; federally-funded Emergency Unemployment Compensation; and Extended Benefits, including the offsetting effect of the payroll taxes that pay for UI.

http://www.dol.gov/opa/media/press/ETA/ETA20101615.htm