Washington, DC – Today, Congressman Donald M. Payne, senior Member of the House Education and Labor Committee, voted to extend the deadline to file for federal unemployment benefits to February 28, 2011. This measure would spare millions of Americans from losing this much needed benefit. Unfortunately, the bill did not pass due to opposition from Republican House Members who argue that such benefits will negatively impact the national deficit.
“While the unemployment rate has stabilized, an alarming 9.6 percent of Americans remain unemployed with a total of 6.2 million considered long term unemployed. In the state of New Jersey, the unemployment rate is 9.2 percent and in the 10th Congressional District, it hovers around 15 percent. Jobs are being created, but not fast enough to offset the millions of jobs that have been lost since the onset of the recession,” Payne said. “Additionally, there have been reports of discrimination against the current unemployed population in job opening listings which show blatant disregard for unemployed applicants. Given current conditions and trends, the extension of unemployment benefits is not only necessary for American families, but for our economy as well.”
Unemployment benefits are a source of stimulus for the economy. A recent Labor Department report concludes that for every $1 dollar spent on unemployment insurance, $2 are spent in the economy. “Jobless benefits allow unemployed Americans to continue to participate in the consumer economy. Allowing unemployment insurance to expire is harmful to the entire nation as it will lower economic growth by half a percentage point and further devastate families,” said Payne.
The Joint Economic Committee reported that ending the extended unemployment program would drain the economy of $80 billion and result in the loss of more than 1 million jobs over the next year. “It is my hope that we can come to a consensus and do what is right for the American people and the economy by extending unemployment insurance,” said Payne.
For more information contact: LaVerne Alexander at (202) 225-3436
