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(Washington D.C.)- Led by Subcommittee Chairman Jim McDermott, Representative Levin and other members of the Ways and Means Committee joined together to introduce legislation to extend the Emergency Unemployment Compensation program for another 13 weeks in states with unemployment over 9%. Michigan, which has lost 777,000 jobs since 2000, had an unemployment rate in June of 15.2%.
“The downturn continues and long-term unemployment is at record levels so we must prepare for action in September to extend the federal unemployment insurance program for hardest hit states,” said Rep. Levin. “We know that jobs are often one of the last components of the economy to recover in a downturn. As we continue to fight for more jobs, we must ensure that unemployed workers and their families have a lifeline to carry them over to better times. We must not leave thousands of people without help in the midst of this crisis.”
The new legislation would extend the emergency extended benefit program for another 13 weeks for unemployed workers in states with an unemployment rate of 9% or higher. It also extends the provision which provides 100% federal funding for the regular law Extended Benefit program, the federally funded Emergency Unemployment Compensation benefits, and the $25 a week supplement until the end of 2010.
While this legislation will address expiring benefits, there is action needed by the Michigan State Senate to claim unemployment funds already provided by the Federal Recovery Act. Michigan would receive $138.5 million by improving its State Unemployment Insurance program to include workers in training and people who can only work part-time. Legislation has been approved by the Michigan State House and is supported by the Governor, but it is being blocked in the Michigan State Senate.
“The State Senate is leaving money in Washington that could help Michigan’s unemployed workers right now. Even though the Federal Government will pay the full freight - $138.5 million – for two full years, they say ‘no’. Even though Michigan could change the law back after two years, they say ‘no’. Even though 27 other states have acted to cover people seeking part-time work, the State Senate says ‘no’. We must convince them to say ‘yes,’” concluded Rep. Levin.
Across the country, 29% of unemployed workers have been out of work for six months or longer and there are currently more than 5 unemployed people in this country for every available job. 6.5 million jobs have been lost nationally since the start of the recession. 100,000 Michiganders and 1.5 million across the country will exhaust their unemployment benefits by the end of the year if no other extensions are provided.
In Michigan, individuals qualify for 26 weeks through the State Unemployment Insurance program. The Federal Recovery Act extended a 33 week additional Emergency Unemployment Compensation (EUC) program through the end of the year and paid 100% of another 20 weeks under the Extended Benefit program which the state usually doesn’t fully utilize because they have to pay 50% of the cost. Additionally, the Recovery Act added $25 per week to each person’s unemployment benefits checks.
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