Untitled Document

News Release
Congressman Bob Etheridge
North Carolina

February 11, 2004

Contact: Sara Lang
Phone: (202) 225-4531

Etheridge Releases Report On Unemployment Benefits

WASHINGTON - U.S. Rep. Bob Etheridge (D-Lillington) today released two new reports analyzing North Carolina's need for an extension of federal unemployment benefits. The U.S. House Committee on Government Reform prepared the reports at Etheridge's request.

North Carolina has lost 115,000 jobs in the last three years, prompting Etheridge to request the reports. An extension of federal unemployment benefits will both help those who need it most and provide a much-needed economic stimulus to the state.

The reports document 2,370 laid-off North Carolinians are losing unemployment benefits every week without finding another job. By June 31, a total of 61,596 people statewide will likely have lost those benefits, including 6,900 in the Triangle area and 1,500 in the Fayetteville metro area.

"During these tough economic times, too many of our workers have been left out in the cold by the economic policies of this White House and Congressional Republican leaders," Etheridge said. "North Carolina's unemployment is the tenth highest in the nation at 6.1 percent, and some areas of my District have unemployment rates as high as 13 percent. North Carolinians can't feed their families on empty promises and hollow rhetoric. I am pleased that the House finally passed an extension of these benefits, and I call on the Republican Leadership to complete action on this measure immediately."

Among the report's findings:

Every dollar paid in extended unemployment benefits boosts economic output by $1.73.
If Congress extended unemployment benefits, North Carolina would receive up to $205 million through June 31, resulting in an economic stimulus of up to $355 million.
For the Triangle area, those numbers translate to approximately $23 million in unemployment benefits, resulting in an economic stimulus of up to $40 million.
For the Fayetteville metro area, those numbers translate to approximately $5 million in unemployment benefits, resulting in an economic stimulus of up to $9 million.

The report echoes similar findings released by the Center on Budget and Policy Priorities last week, which noted that North Carolina's record-level increase in the number of workers exhausting unemployment benefits is "the most dramatic story" in the country.

In light of these statistics, Etheridge has consistently called for extensions of the unemployment benefits program. Last week, each voted for an amendment that would provide a 6-month extension. Over objections from many Republicans and the President, it passed the House and has gone to the Senate for consideration.