[Congressional Record Volume 148, Number 108 (Thursday, August 1, 2002)]
[Senate]
[Pages S7957-S7958]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KENNEDY (for himself, Mrs. Clinton, and Mr. Rockefeller):
  S. 2892. A bill to provide economic security for America's workers; 
to the Committee on Finance.
  Mr. KENNEDY. Mr. President, the U.S. is in the midst of another 
``jobless recovery,'' similar to the early 1990s, with the unemployment 
rate showing few signs of falling in the coming months. Over the past 
three months, the jobless rate has hovered around 6 percent and long-
term unemployment levels now exceed those reached in any recent 
recession. Last month, nearly one in five unemployed workers remained 
out of work for six months or more. Some 150,000 jobs have been lost 
since the beginning of this year and 8.4 million people are currently 
unemployed.
  The recent spate of corporate scandals has only made it worse. Sadly, 
Enron and WorldCom were not isolated events of corporate greed that 
hurt America's workers. Tens of thousands have lost their jobs because 
of the disgrace and mistrust company leaders created, or because of 
company mismanagement. At Lucent, 77,000 workers were laid off. At 
Kmart, 22,000 workers were laid off. At Xerox, over 13,000 workers were 
laid off. At Tyco, almost 10,000 workers were laid off. At Global 
Crossing, over 9,000 workers were laid off. At Polaroid, over 4,000 
workers were laid off.
  As new corporate scandals lead to additional mass lay-offs and 
Americans remain unemployed longer, workers are losing their 
unemployment benefits with no hope for a new job in sight. Too many 
low-wage and part-time workers remain without unemployment benefits. 
And benefit levels remain too low to keep families out of poverty in 
many states. Today, I along with Senators Clinton and Rockefeller, am

[[Page S7958]]

introducing the Economic Security Act 2002 to protect those unemployed 
workers and reinvigorate the economy.
  Last year, Senate Democrats responded to the recession with an 
immediate plan to stimulate the economy and help laid-off workers get 
back on their feet. In March, House Republicans finally relented and we 
extended unemployment benefits for millions of workers. It was a 
significant step forward, but it did not go far enough.
  This week, economists confirmed that recovery is slow at best. 
Economic growth fell from 5.0 percent in the first quarter of 2002 to 
1.1 percent in the second quarter. Business investment still has not 
recovered and continues to decline, while the trade deficit soared to 
record highs. Job growth, the last area of the economy to recover after 
a recession, continues to lag. As hundreds of thousands of workers 
exhaust their extended benefits, it's time to close the gaps in the 
extended benefit program. The Economic Security Act of 2002 will 
provide additional extended benefits for millions of workers who remain 
unemployed.
  The bill will also help those workers currently left out of the 
unemployment insurance system, part-time and low-wage workers. Part-
time work is a significant part of our modern economy and women and 
low-wage workers disproportionately comprise the part-time workforce. 
Yet, the majority of states do not provide benefits to unemployed 
workers seeking part-time work. The twenty States that already provide 
benefits to unemployed part-time workers have not found their inclusion 
overly costly.
  In addition, according to the GAO, low-wage workers are half as 
likely to receive unemployment benefits than other unemployed workers, 
even though low-wage workers as twice as likely to be unemployed. In 
all but 12 States, most unemployed low-wage workers are not eligible 
for benefits because their most recent earnings are not counted. 
Failing to count a worker's most recent earnings not only denies 
unemployed workers benefits, but also cuts down on the duration and 
amount of benefits that some unemployed workers receive.
  These part-time and low-wage workers pay into the unemployment 
system, but fail to receive benefits. In January, Democratic Senators 
were joined by ten of our Republican colleagues in a vote to provide 
temporary benefits to part-time and low-wage workers, as well as 
increasing benefit levels and extending benefits. The Economic Security 
Act of 2002 incorporates these important provisions.
  Too often, those who receive unemployment find that unemployment 
checks are not sufficient to meet basic needs. In some states, the 
maximum weekly benefit amount is less than the poverty level for a one-
parent, two-child family. Raising benefit levels helps families stay 
out of poverty and invests more in the economy. After all, unemployed 
workers immediately spend unemployment insurance benefits in their 
communities, providing immediate economic stimulus. This bill would 
give a boost to workers and the economy by raising temporary extended 
benefit levels by the greater of 15 percent or $25 a week.
  As Americans exhaust their benefits in greater numbers, we must 
ensure that all workers can put food on their families' tables and keep 
a roof over their heads when jobs are scarce. And we must ensure that 
unemployment insurance serves the purpose for which it was created, to 
serve as a safety net for all workers during tough economic times and 
stimulate economic growth. The Economic Security Act of 2002 will be a 
giant leap forward for America's workers.
  Mr. ROCKEFELLER. Mr. President, despite some signs of an improving 
economy, for hard-working Americans, it is, unfortunately, a ``jobless 
recovery.'' While we see some positive economic indicators, the 
unemployment rate continues to rise and shows few signs of falling. For 
working Americans, that is bad news. Too many people are finding 
themselves without a job, and without a source of income.
  The Labor Department reports that over the past few months, the 
unemployment rate has hovered around 6 percent, with 8.4 million people 
officially counted as unemployed. My home State of West Virginia 
reported an unemployment rate of 6.8 percent in June, which is only 
somewhat higher than the national average, but some of our counties are 
struggling with unemployment rates in the double digits.
  Not only are more people being laid off, they are also remaining 
unemployed for longer. From January to May 2002, the proportion of 
unemployed workers who were still looking for work after 27 weeks 
increased by 41 percent, and unemployment levels now exceed those 
reached in any recent recession. Workers are suffering unemployment for 
longer periods, and are losing benefits before they can find new jobs. 
In January 2002, a total of 373,000 workers exhausted their benefits, a 
sizeable 11 percent increase from the same time last year.
  We faced similar troubles in the early 1990s, when, amidst a 
recession, Congress enacted an emergency Federal extended benefits 
program designed to help unemployed workers and their families. Some 
analysts suggest that without that program, approximately 70 percent of 
unemployed families would have ended up with incomes below the federal 
poverty line. When our Nation faces such an economic downturn, action 
is essential to help hard-working Americans get back on their feet 
after a devastating layoff. Now, in the midst of another economic 
downturn, we must also act to provide American families with the 
assistance they need.
  I rise today in support of a bill to be introduced by my colleague, 
Senator Kennedy, that would remedy several flaws in the current 
unemployment benefits program. This is an enormously important piece of 
legislation, one that should be enacted immediately for the sake of 
working families who have been put out of jobs through no fault of 
their own.
  The measure would give States administrative funding so they can 
distribute benefit checks punctually and accurately. It would ensure 
that all unemployed workers receive a full 13 weeks of benefits. And it 
would repeal the 20-weeks-of-work prerequisite to receiving benefits 
that primarily punishes low-wage workers and newer entrants to the job 
market.
  Beginning in 1986, Federal and State governments began withholding 
taxes from the benefit checks of all aid recipients. However, no 
accommodations were made to offset these deductions, and recipients saw 
a significant reduction in benefits. To ameliorate this problem, 
Senator Kennedy's legislation would raise benefit levels by 15 percent 
or $25 a week, whichever is higher.
  Finally, a majority of States currently refuse benefits to unemployed 
workers seeking part-time work. West Virginia does cover part-time 
workers, but I believe every state should do this as well. Part-time 
work is an enormously important component of our economy, particularly 
as it involves large numbers of women and low-wage earners. Senator 
Kennedy's bill would require states to base eligibility on a worker's 
most recent earnings. This seemingly technical provision would greatly 
expand eligibility to benefits for many workers, in my state, and 
across the country.
  Millions of Americans are still struggling, and they do not have a 
steady source of income. I urge my colleagues to support this bill to 
reform America's unemployment insurance program; it is urgently needed 
and should be passed with great haste. This bill is the right thing to 
do for working Americans, and it is an essential measure for those 
still suffering from the effects of our uncertain economy.
                                 ______