CLARKONOMICS: The Senate has voted 98-0 to extend unemployment benefits between an additional 14 and 20 weeks for jobless Americans.

The 20-week extension will be for residents of states where unemployment is higher than 8.5 percent. (Editor's note: A complete list of these states will be added shortly.) Residents in the remaining states will be eligible for the 14-week extension.

The measure is expected to be approved by the House today and signed into law by President Obama shortly after. This move makes is so that those hardest hit by unemployment can get 99 weeks of jobless benefits, which is just shy of 2 years! The average weekly unemployment payment is around $300/week, according to Clark, though it varies greatly by location and prior earnings.

Ultimately, this is just a Band-Aid on the wound of people who want to work but can't because the job market won't bear it. As always, Clark believes an economic downturn is a great time to start your own business. Commercial space and employees both come cheap at a time like this.

Meanwhile, Congress has extended the $8,000 homebuyer tax credit through April 30. This is expected to be the final extension. In addition, there's a new expansion that will give $6,500 to existing homeowners who want to move up into another house. Income caps apply for the latter provision.

CLARKONOMICS: The brainiacs are saying the recession is over, citing a rise in corporate confidence and a spike in orders being placed. But it's not yet the real healing that individuals and families so desperately need on the job front.

For the foreseeable future, the job market will continue to be tough. That leaves many people in unexpected positions. Clark recently talked with a woman who was unemployed for some time. After a few minutes, it emerged that she had not applied for unemployment compensation because she was too proud.

Unemployment compensation should not be a dirty word in your vocabulary; insurers pay this insurance during good times so people can survive during lean times.

Three factors make this an extremely tough cycle. First, individuals went into the recession with big debt. Second, banks took on too much speculative debt and harmed our nation to its core. Third, the federal government has taken on massive borrowing as a result of the first two factors. Yet the government's artificial props for the economy will eventually have to be dealt with. We can't keep printing money!

So know that it is legitimate for you to seek assistance in this economy. Here are two key takeaways:

• Do not allow pride or embarrassment to keep you from applying for unemployment compensation.

• Do not be afraid to rely on food stamps to put square meals on the table for your family.

More and more employers are weighing job candidates based on their credit report -- even though it's no indicator of what kind of employee someone will be!

This is a practice that started and should have ended with bank tellers and cashiers at retail stores -- basically, people who touch money every day. But now so many businesses check credit reports without thinking it through. In fact, your application often gives them permission to pull your credit.

The real problem is that many credit reports have errors. Public Interest Research Group estimates that close to one-third of reports contain serious errors that can cost you a job offer or prevent you from getting new credit.

This is yet another reason why you should visit AnnualCreditReport.com to pull one of your three credit reports every four months. Remember, you have a credit report from each of the three main credit bureaus -- Equifax, Experian and TransUnion.

Paying off any small nagging debts will immediately help your credit. But if you have errors, be sure to challenge them. When you challenge an error, it temporarily removes it for 30 days. Contact the alleged creditor by phone and in writing to dispute the debt. They're liable for putting false info on your report if you can demonstrate financial harm, such as the loss of a job offer.

CLARKONOMICS: Unemployment benefits are likely to be extended by 13 weeks in the 27 states that have been hardest hit by joblessness.

These states include Alabama, Arizona, California, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Massachusetts, Maine, Michigan, Mississippi, Missouri, Nevada, New Jersey, North Carolina, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Washington, Wisconsin and West Virginia.

Again, this has not been signed into law yet, but it is a bill that's destined to become law very soon.

We are in a cycle that likely won't see a decent recovery in the job market until 2011 or 2012. Clark says this reluctantly because, for the unemployed, taking 2010 off the table is dispiriting. The reality is that in 2010 we'll reach equilibrium between job losses and job gains. But we won't see a true recovery until a year or two out beyond that point.

When employers begin hiring after the recession, it will likely be with more contract work than full-time employment. This looks set to be the start of a long-term trend; you may be signed to a 90-day or 1-year contract.

Basically, employers want the ability to grow or shrink their work force at will according to how business is doing.

Another benefit for employers is that they can sidestep the messiness of layoffs with contract workers. The issue simply becomes will they offer you a new contract or won't they? Much nicer than having to "let more heads roll," which is never a pleasant experience.

Contract employment has long been very popular in Europe and Japan.

Let's face it, the social contract of lifetime employment -- where we worked for one employer who provided a pension -- has long ago faded away. Contract employment is just one more recognition that employers rent us and we rent them for a period of time.

And it's definitely something of a double-edged sword. On one hand, it becomes more difficult to make longterm plans. How can you buy a house and stay in it for a minimum of 5 years (as Clark recommends) when you don't know if you'll be employed? Yet on the other hand it creates more hiring opportunities in a capitalist system.

Yet here's the ultimate downside: One thing you can't measure is how loyal an employee will be and how customer-focused they'll be when they know their employer hasn't made a commitment to them.

With the rise in unemployment, Clark wants to lay out a strategy you can use if you get laid off.

• Do not be reluctant to file for unemployment insurance. There's nothing shameful about it. Employers pay premiums over time during the good years to provide for those who get laid off in lean times. It's not beneath you to accept this insurance money.

• If you are hit with a layoff, it's likely that an immediate superior who is familiar with your performance will break the news to you. That's the best time to negotiate on your own behalf. Think through what you want to ask for when it comes to health coverage and severance (if applicable). Ask for a personal letter of reference to assist in your job hunt.

• Looking for work is a full-time job. You need an action plan. Start by reviewing your list of contacts, but heed these words: People don't like to be called and asked if there's a job. However, they love to give advice that may lead to an opportunity. Visit in person with your contacts if possible.

• Triage your finances so you know which debts to prioritize and which to neglect if your money runs out. Paying for your car is central to finding employment for most people. It's practically higher than paying your mortgage or rent. You many need to live with friends or relatives until you can get back on your feet. What shouldn't you prioritize paying? Your credit cards!

As Clark recently explained, workers are normally entitled to 26 weeks of unemployment benefits. But a new federal law now extends that coverage through 39 weeks. If you've exhausted your 26 weeks and still haven't found work, contact your state's Department of Labor to apply for the extension. If you're already in the midst of your original 26-week benefits, you'll likely just be extended through 39 weeks.

Meanwhile, The Career Journal reports a number of people are going into altruistic jobs. Applications for the Peace Corps are up just under 20%. Teach for America applications are up 36%. Even the Jesuit Volunteer Corps is experiencing a surge in applicants.

People are using today's sluggish economy as an opportunity to take time out from their career and try something different. If you've hit a career roadblock, can you try moving forward in a new way?

Clark recently put out a call to corporate America for more businesses to adopt the 4-day work week. With such a schedule, employees work four 10-hour days instead of five 8-hour days. That means a savings in fuel, reduction of air pollution and improvement in employee morale/retention.

Some employers also offer flex hours. With flex hours, there's a core of the day that employees must be on the job. The rest of the day can then be structured more freely. So under this arrangement, you can make that early morning doctor's appointment and just work a few extra hours in the evening to make up for the lost time. It's a win/win situation for everyone involved.

The governor of Utah has instituted a 4-day work week for most state employees -- except public safety workers -- until further notice. Think about the money they'll save by not having to heat or cool their facilities from Friday through Sunday.

So if you're the boss at a small business, can you make a 4-day work week work for your company? It creates employee loyalty and the cost of turnover by not doing it will be far more expensive in the long run.

CLARKONOMICS: Several surveys -- including the official one from the feds -- show that payrolls are shrinking. Yet the unemployment rate stayed steady at 5.5 %. How can that be? Some economists think job seekers are discouraged and have stopped looking for work. That's still anecdotal at this point.

Yet the reality is that while things have gotten tougher, it's not a disaster. Many people hear the news about the job market and think things won't improve. But that's not the way capitalism works -- we go through cycles.

Unemployment likely will rise over the next year. But even so, there's always someone hiring. Networking can help you ferret out those offers.

Meanwhile, if you've been unemployed and have exhausted your benefits, Clark has some good news. Pres. Bush signed a law that extends benefits for 13 additional weeks for those who are actively seeking work. For full details, see the text of the new law.

Don't delay or you may forfeit a portion of the benefit. Contact your state's Department of Labor to renew.

A lot of folks in the U.S. have suffered a job loss because someone overseas is willing to do the job for a lot less. Historically, our answer has been to collect extended unemployment insurance. Clark likes the way Denmark handles this problem. They do something called “flex security.” Denmark is a free-market economy willing to compete with anybody at anytime. Also, much like the States, companies can get rid of someone at will and they don’t have to provide a reason. But if you lose your job because of foreign competition, they subsidize pay and training at a new job. That helps eliminate the anger you may have had toward the foreigners who took your job and gives you skills for a new career. So, how’s it working? Unemployment in Denmark is 1 percent, which is great. We have a system in the States much like this called “wage insurance,” but we don’t use it very often. Clark hopes we start using this system more. It will help Americans be more competitive and is a smarter, more productive way to earn money.

Employers are allowing employees to donate their sick time and vacation time to Hurricane Katrina victims, thanks to a recent IRS decision. The employer doesn’t get any kind of benefit, aside from a rewarding feeling. The employer gets a tax break, though, so you may start to see more about it. The program is available in 2005 and 2006. Clark thinks it’s a great idea because the average full time employee fails to use eight days of vacation or sick time each year. And, in most companies, if you don’t use it you lose it. So, look into whether you can donate the time. It may be used for hurricane help or some other cause. In addition, if you’re extremely wealthy, there is a special provision that waives limits on donations to the hurricane relief. So, you can donate as much as you want. Just make sure you check with your CPA before doing so.

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In other news, employers are now charging people more for health insurance if they have unhealthy habits. People must take a health assessment and employees are docked pay until they fill it out. The companies also spit back out an action plan to help you get healthier. Northwest Airlines, for instance, has implemented a surcharge for employees who smoke.

Clark quit smoking quite a few years ago, but he admits he used to smoke like a chimney. Therefore, he has always been interested in the topic of smoking in the workplace and how it is accepted. Well, a story in the Detroit News gave him his answer. According to the paper, a Michigan company fired four employees because they tested positive for tobacco after the company instituted a no-smoking policy. It’s legal in Michigan to fire employees on those grounds. But Clark thinks that is just wrong. About 80 percent of you agreed with him in a recent poll, which asked whether it was fair to fire existing employees because they smoke. He thinks it’s fine not to hire someone because he or she is a smoker. It adds huge health care costs. But doing what’s fair is also important.

Last year, Clark talked about some ideas percolating in the U.S. Department of Labor that would change who gets overtime pay. The ideas are now becoming rules, and they will prevent most people who got overtime pay from getting it anymore. There are millions of people who get time and a half in overtime pay if they work over 40 hours. But that will be a thing of the past. Under the new rules, you won’t get any extra money after 40 hours. And the new rules are confusing the daylights out of employers. The new rules were designed to deal with the new face of jobs and employment in today’s society. In the past, people worked in stricter businesses and usually were in one job for most of their lives. People were often overworked and did not get paid. So, the Fair Labor Standards Act was passed, making it illegal for people to work more than 40 hours without OT pay. Today, people work from home or work more flexible hours, and the line between work time and leisure time is fuzzier. But people are used to the old way, and that includes employers. Many employers don’t even know this new law is going into effect. If you are one of them, research the topic and talk to your Chamber of Commerce to understand it better. But basically the rules are about as clear as mud right now. The only clear rule is that people who are making under $25,000 a year are now eligible for overtime. Most everyone else will not be eligible.