House Passes the Unemployment Compensation Extension Act of 2009 (H.R. 3548) by a Vote of 331-83

Washington, D.C.--Congressman Eliot Engel voted today to provide an extension of unemployment benefits to the hundreds of thousands of American workers currently out of work and in danger of exhausting their unemployment benefits. There are thousands of workers who have already run out of compensation, who would also benefit from this legislation. Over one million jobless workers, in high unemployment states, are expected to run out of compensation by the end of 2009. Almost 90,000 New Yorkers are expected to have run out of coverage by the New Year.

States become eligible for the extension by having a seasonally-adjusted, three-month average total unemployment rate of 8.5 percent, or a 13-week insured unemployment rate above six percent. There are currently 27 states (including New York), along with the District of Columbia and Puerto Rico which would qualify for the extension.

“In order to continue to facilitate our nation’s recovery from one of the worst economic downturns in modern history, we must provide relief to families who are struggling to make ends meet due to unemployment. The extra 13 weeks, provided for in this bill, are critical to people struggling to put food on the table, pay their bills and keep a roof over their heads while they search for employment,” said Rep. Engel. “This is one of the easiest, cost-effective and fast-acting ways to stimulate the economy because the money is spent rapidly. For every $1 spent on unemployment benefits, approximately $1.63 is generated in new economic demand.”

HR 3548 is designed not to add to the deficit. It extends the federal unemployment tax for one year, something which has existed for over 30 years, and requires better reporting on newly-hired employees in order to reduce unemployment insurance overpayments.

“The rising tide of job losses, which we felt back in January, has been reduced by two-thirds in August, thanks in part to the American Recovery and Reinvestment Act (ARRA). However, the numbers are still far too high, as 6.9 million have lost their jobs since the recession began in December 2007. Unemployment is likely to get worse before it gets better, but the groundwork is being laid for a smoother road to recovery,” said Rep. Engel.

The 11-term Congressman added that signs are improving for the economy. For example:

• Fed Chairman Ben Bernanke recently declared the recession is likely over.
• American economic growth swung more than five points in the right direction, as GDP shrunk by only -1 percent this spring, down from -6.4 percent in January.
• The housing market has begun to stabilize as home sales grew in July and home prices rose in the second quarter for the first time in three years.
• The nation’s net worth rose by $2 trillion in the second quarter after declining for two consecutive years.

“Currently there are over six unemployed workers for each job opening and these families need the ability to form a bridge to the day where they regain employment. Not only are there important economic reasons for boosting the ability of unemployed families to survive, but it is also simply the right thing to do,” said Rep. Engel.