What if the very programs that are supposed to help the unemployed are actually prolonging unemployment? Beyond the staggering cost to the government, there are other implications to extending unemployment benefits. Research strongly suggests that a long stretch of unemployment compensation actually prolongs the high unemployment rate. It is an unfortunate cycle that is likely to continue for awhile.
Unemployment compensation is the kind of governmental compassion that generally has support from both Democrats and Republicans, hence the recent bills that have passed through Congress to extend a variety of unemployment benefits. While it varies from state to state, typical benefits put money in the pockets of the unemployed for 26 weeks, with the possibility of a 13 week extension. But due to legislation passed during the recession, unemployment compensation can now run as long as 99 weeks. (Time)