Senator Ted Kennedy On Emergency Unemployment Compensation

Introduces legislation to extend benefits for millions of Americans

January 22, 2008 -- WASHINGTON, DC— Today, Senator Edward M. Kennedy, Chairman of the Health, Education, Labor and Pensions Committee, introduced legislation to temporarily extend unemployment compensation benefits for millions of Americans. Senator Kennedy issued the following statement:

“Our economy is in crisis and millions of Americans are struggling to find work. Too many hardworking people have been pounding the pavements looking for a job for more than six months while their bills skyrocket and their families suffer. They have spent years paying into our unemployment insurance system, yet the system is abandoning them when they need help the most. Congress should act now to strengthen this vital safety net, and I urge my colleagues to join me in extending unemployment benefits so we can help American families weather the current economic storm and get our economy back on track.”

THE EMERGENCY UNEMPLOYMENT COMPENSATION EXTENSION ACT OF 2008

The economy is in crisis, and millions of Americans are struggling to find work. Congress must extend unemployment benefits to help working families and jumpstart our economy.

Unemployment is rising.

· Half a million more workers were unemployed in December than the month before, raising the unemployment rate to 5 percent—the largest jump since the last recession.

· Experts predict the situation will only worsen—Goldman Sachs projects an unemployment rate of 6.5 percent by the end of 2009.

· Almost one in five unemployed Americans has been searching for a job for more than 6 months—nearly double the rate going into the last recession.

· Today, there are only 4 million job openings for the 7.7 million unemployed Americans—nearly two workers for every job.

Extending Unemployment Benefits will help families on the brink.

· A lost job can mean financial disaster for a family—77% of middle class Americans do not have enough assets to pay essential expenses for three months.

· Over 2.6 million Americans—35% of all unemployed workers—have already exhausted their unemployed benefits over the past 12 months.

· Workers have paid into the unemployment system for years and deserve protection now.

Experts agree that extending unemployment benefits is the best way to stimulate the economy.

· Families who receive unemployment assistance will spend the funds quickly in their communities, boosting local economies.

· Moody’s economist Mark Zandi showed that every dollar invested in unemployment benefits leads to $1.73 in growth—more than any other stimulus program. CBO agrees, finding that extending unemployment benefits is a cost-effective and fast-acting measure.

Congress has extended benefits in each recent recession. In the past, Congress has extended benefits nationally by 13 to 26 weeks—even more for high-unemployment states.

The Emergency Unemployment Compensation Extension Act would help millions of Americans who otherwise would exhaust their benefits and be left in the cold:

· EXTENDS AND EXPANDS BENEFITS: Provides 20 more weeks of benefits to eligible workers with an additional 13 weeks in states with high unemployment. Benefits would be temporarily increased by $50 per week to help families with skyrocketing energy and food costs. Eligibility for the extension would last for one year.

· COVERS RECENT EXHAUSTEES: Provides benefits to unemployed workers who exhausted their regular benefits in the year prior to enactment.

· DOES NOT BURDEN STATES OR EMPLOYERS: Fully funds this temporary program to avoid forcing states to make spending cuts or increase taxes on employers.

Source: Senator Edward M. Kennedy

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