From the CEA’s report “The Economic Impact of Recent Temporary Unemployment Insurance Extensions” released earlier today.
…CEA estimates that in December 2011, without a year-long extension:
- Employment would be 593,000 lower than if there were an extension;
- GDP would be 0.6 percent lower than if there were an extension.
These conclusions are depicted in Figure 5 from the report.
For a discussion of the implications of UE on unemployment and employment, see the analysis here.