We Need To Expand And Improve Our Unemployment Insurance System

American workers and our economy have taken a big hit since the terrorist attacks of Sept. 11. In July and August, we were teetering on the edge of a recession, but the terrorist attacks clearly pushed us over the edge.

Hundreds of thousands of workers -- through no fault of their own -- have been laid off because of the shocks to our economy. The Labor Department recently reported that claims for unemployment insurance in the two-week period following the attacks on New York and Washington have reached the highest level since 1992.

In this period of economic uncertainty, we must protect American workers and their families. At the same time, we also need to stimulate consumer demand and economic growth. The best way to do this is to improve our unemployment compensation system and put money in the hands of those who are most directly affected by the economic downturn.

I recently introduced the Temporary Unemployment Compensation Act to strengthen our unemployment compensation system and help workers who have been affected by the events of Sept. 11. This measure has bipartisan support within the Ways & Means Committee, which has jurisdiction over our unemployment laws.

This legislation has three objectives: to provide benefits to certain unemployed workers who are not covered by the unemployment compensation system; to provide 13 weeks of extended benefits to workers whose regular unemployment compensation has expired; and to supplement the amount of benefits paid to unemployment compensation recipients by 15%, providing the average recipient with an additional $135 a month.

In addition to providing an immediate cash benefit to families who have been dislocated, this bill would improve the unemployment compensation system by providing benefits to many low-wage workers who do not receive assistance under the current system when laid off.

The plight of low-wage workers who are laid off is not good. Last December, the General Accounting Office (GAO) reported that only 18% of unemployed low-wage workers received benefits compared to 40% of higher-wage workers. Part of the problem is that too many unemployed workers are denied benefits because their most recent wages are not counted, and because those seeking part-time employment are not eligible for benefits.

This measure would address some of these inequities by providing federally-funded coverage for one year to unemployed workers seeking part-time work and to workers who require their last completed quarter of employment be included in their wage record to be eligible for benefits.

In the wake of the terrorist attacks on this nation we need to provide an economic boost to the economy. By improving the unemployment compensation system we are getting money into the hands of Americans who have earned the benefits but are not adequately protected by the current system. What better way to stimulate the economy than helping Americans who have lost their jobs pay their bills in this time of financial uncertainty.