[Congressional Record Volume 143, Number 68 (Wednesday, May 21, 1997)]
[Extensions of Remarks]
[Page E1005]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                        RECORD LOW UNEMPLOYMENT

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                         HON. MICHAEL G. OXLEY

                                of ohio

                    in the house of representatives

                        Wednesday, May 21, 1997

  Mr. OXLEY. Mr. Speaker, in April the national unemployment rate 
reached a 24-year low of 4.9 percent. Ohio's unemployment rate was 4.8 
percent for April, according to Ohio Bureau of Employment Services 
statistics released last Friday. Unemployment fell in every one of the 
counties of Ohio's Fourth Congressional District. Clearly, the Ohio 
economy is very strong, with a robust labor market.
  For the national unemployment rate to crack the 5 percent floor for 
the first time since the Nixon administration signals a fundamental 
change in the labor market. The accepted economic thinking has been 
that even a full-employment economy had a natural unemployment rate of 
5 percent or so. That is, that even during times of prosperity and 
growth you would have structural and short-term unemployment due to the 
normal function of the labor market, and that the figure was between 5 
and 6 percent.
  The parameters have changed, and it is the result of actions taken by 
the Republican Congress. Welfare reform probably had the largest single 
impact. As the States implement the legislation enacted by Congress, 
individuals are being weaned off welfare and into paying jobs. Over 1.3 
million people left the welfare rolls in 1996, more than 650,000 of 
them in just the last 4 months of the year. When you reform social 
programs that discourage work, you are bound to get more wage earners.
  Then there's immigration reform. With the tightening of restrictions 
on illegal immigration and the termination of benefits like 
unemployment insurance for illegal immigrants, jobs are moving out of 
the underground economy and are being filled by legal residents.
  In addition, efforts made by Congress to deregulate businesses, 
promote competition, and cut government spending are all contributing 
to economic growth. The telecommunications and securities reform 
legislation passed during the 104th Congress are two prime examples 
where deregulation is eliminating redtape, expanding industries, and 
putting capital investment to more efficient use to create jobs.
  Another factor contributing to the sustained economic expansion has 
been the increase in international trade. Fully half of U.S. economic 
growth during the past 5 years has been export growth. Free trade 
policymaking in Washington and a global perspective in Columbus have 
accrued to the advantage of the Buckeye State, where Governor Voinovich 
has worked to make Ohio one of the top exporting States in the Nation.
  International competition benefits the U.S. economy in another 
important way, by working to keep prices down. We truly are part of a 
global economy, one result of which is that tight labor markets do not 
necessarily mean higher prices.
  What we are experiencing now is record employment without 
accompanying inflationary pressures. With the exception of a few 
sectors requiring special skills in short supply, you have full 
employment without worker shortages. The old notion of what constitutes 
natural unemployment rates needs to be rethought. The Federal Reserve 
Board was correct not to raise interest rates yesterday, and it should 
not do so until such time as there is real evidence of inflationary 
pressure.
  Finally, because the balanced budget agreement negotiated by GOP 
congressional leaders calls for tax cuts for families, capital gains 
tax relief, and reduced government spending, we can count on lower 
interest rates, continued job growth, and more money in the pockets of 
Americans--more of whom are working than at any time in history.

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