UPDATE 4-Senate Democrats unveil jobless benefits extension

* Unemployment benefits would be extended in all 50 states

* Republicans object to bill, delay vote until next week (Adds Reid comment)

By Andy Sullivan

WASHINGTON, Oct 8 (Reuters) - Unemployment benefits would be extended by up to 14 weeks in all 50 U.S. states under a bill introduced by Senate Democrats on Thursday.

Jobless people in states where the unemployment rate is above 8.5 percent would also get an additional six weeks of benefits under the measure, which is backed by Senate Majority Leader Harry Reid and Senate Finance Committee Chairman Max Baucus, among others.

Backers had hoped for quick passage, but a vote was delayed until next week after Republican Senator Jon Kyl objected.

Reid said families hard hit by unemployment cannot afford Republican objections to extending benefits.

"It is unfortunate that Senate Republicans have chosen to object to this much needed assistance. It is my hope that they will put partisanship aside and support an extension of unemployment benefits next week," Reid said.

The national unemployment rate of 9.8 percent is at its highest level in 26 years, and congressional Democrats have been working to extend jobless benefits for those who risk exhausting them -- roughly 2 million people by the end of the year, according to some estimates. Some 400,000 may have already used them up.

The bleak jobs picture could put many Democrats at risk in next year's congressional elections unless voters are convinced they are doing all they can to help the economy.

Democratic leaders and President Barack Obama are considering measures such as extending an $8,000 tax credit for first-time homebuyers or launching new construction programs.

They could face opposition from Republicans who say existing measures have only added to the U.S. budget deficit while doing little to jump-start growth.

The U.S. government more than doubled its spending on unemployment insurance to $120 billion in the fiscal year that ended Sept. 30, according to the Congressional Budget Office.

The House of Representatives passed a narrower bill last month that would extend benefits only for workers in high-unemployment states. Some 28 states, plus Puerto Rico and the District of Columbia, had unemployment levels above the 8.5 percent threshold in August.

In the Senate, New Hampshire Democrat Jeanne Shaheen sought to broaden the House bill to include workers in states like hers, which have not been hit as hard. She backs the current bill.

If the Senate bill passes, it would have to be reconciled with the House version before Obama could sign it into law.

Unemployed workers typically are eligible for up to 26 weeks of payments from the government as they look for another job, although actual benefits vary by state.

Congress has already extended that limit twice and some workers are now eligible for up to 79 weeks of benefits. (Additional reporting by Lisa Lambert; Editing by Peter Cooney)