11.12.02

Cantwell calls for congressional extension of temporary federal unemployment benefits extension in letter to Lott, Daschle

SEATTLE, WA -U.S. Senator Maria Cantwell (D-WA) today called on Congress to pass legislation extending temporary federal unemployment benefits set to expire at the end of December in a letter to Senate Republican Leader Trent Lott (R-MS) and Senate Democratic Leader Tom Daschle (D-SD).

Cantwell's call for action comes on the heels of today's Washington State Department of Employment Security report that nonagricultural employment is "significantly lower that it was at this time last year" with most of the losses in manufacturing. The report also shows that Washington state's core industries, including manufacturing and data processing, are not recovering. Cantwell said the report renewed the urgency that Congress act on unemployment before it adjourns for the year.

"This is the time to help hard-working people put food on the table and pay their bills while they look for new jobs," Cantwell said. "We're still in tough economic times and cannot afford to cut off this important source of temporary assistance."

Washington State Department of Employment Security reported that the state's unemployment rate is 6.7 percent, leaving it one of the highest unemployment rates in the country.

According to a report by the Center for Budget and Policy Priorities, three million workers nationwide, including 82,000 in Washington state, will be affected if Congress does not pass S.3009, the Emergency Unemployment Compensation Act. The bipartisan legislation would extend temporary federal unemployment benefits through July 1, 2003.

"These benefits will inject cash into the communities which need it most," Cantwell said. According to a 1999 Department of Labor study, every dollar spent on unemployment benefits generates $2.15 in economic activity.

The current package of temporary benefits was enacted in March 2002 with the support of President Bush and a bipartisan coalition from both chambers of Congress.

In September 2002, Cantwell and her colleagues introduced legislation extending unemployment benefits.

Despite bipartisan support for S.3009, Republican leaders have blocked its passage on seven different occasions on the Senate floor since October 1. Cantwell pledged to keep trying to bring the resolution to the floor until Congress passes an unemployment extension.

The text of the letter follows:

November 12, 2002

Senator Trent Lott Republican Leader Washington, D.C. 20510 Senator Tom Daschle Democratic Leader Washington, D.C. 20510 Dear Senators Daschle and Lott: I am writing to request that you work together to make extension of the federal temporary unemployment insurance program one of your highest priorities during the remainder of the 107th session of Congress. Three million American workers are counting on Congress to extend these temporary unemployment benefits before they expire at the end of December.

The nation's unemployment rate rose to 5.7 percent in October. Washington state's unemployment rate is even higher at 6.7 percent in October. But even more alarming is the number of workers who have been unable to find work for long periods of time.

The number of long-term unemployed workers nationwide - those who were unable to find work for more than six months - jumped by 200,000 during the last two months and now totals 1.66 million workers. More than one in five unemployed workers fall into this category, the highest rate since October 1994. In August, there were 2.3 workers searching for every available job. In Washington state, more than 88,000 workers had exhausted eligibility for regular state UI benefits at the end of September, and nearly 11,000 of those have also exhausted their eligibility to receive federal temporary unemployment insurance. The most recent report from the Washington State Employment Security office indicates that the state's core industries are not recovering.

Nationally, the economy does not appear to be recovering rapidly, if at all. In September, consumer spending fell, purchases of new equipment by businesses weakened, and it appears that manufacturing activity declined in October for the third consecutive month. Last week, the Federal Open Market Committee of the Federal Reserve lowered its short-term interest rate by half a percentage point to its lowest level in more than four decades. In a statement, the committee recognized that "greater uncertainty, in part attributable to heightened geopolitical risks, is currently inhibiting spending, production, and employment."

As you know, if the federal benefit is not extended, the program will expire at the end of this year, leaving millions of workers without any means of assistance even as the economic recovery remains stalled. Bipartisan legislation principally sponsored by our late colleague Senator Wellstone, S. 3009, would continue the temporary extended unemployment compensation program that we overwhelmingly passed with President Bush's support last March and provide a means for struggling workers and their families to pay the mortgage, put food on the table, and keep the lights on during these challenging times.

We know that unemployment insurance (UI), in addition to serving as a backstop for those Americans most hurt by the recession, also serves to stimulate a weakened economy. A study commissioned by the U.S. Department of Labor in 1999 found that UI benefits produced $2.15 of increased economic activity for every $1.00 in benefits paid to laid-off workers.

Extending the temporary federal UI benefit is a common-sense measure that will help workers and the economy, while having no direct impact on the federal budget. I believe that we can and must work together to pass the extension before the end of the year when such benefits are set to expire. I respectfully urge you both to forge a reasonable consensus on such legislation and to schedule that measure for expedited consideration during the final session of this year.

Sincerely,

Senator Maria Cantwell