[Congressional Record Volume 148, Number 124 (Thursday, September 26, 2002)]
[Senate]
[Pages S9428-S9430]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WELLSTONE (for himself, Mrs. Clinton, Mr. Kennedy, Ms. 
        Landrieu, Mrs. Carnahan, Mr. Smith of Oregon, Mr. Bayh, Mr. 
        Sarbanes, Mr. Daschle, Mr. Rockefeller, Mr. Torricelli, Mr.

[[Page S9429]]

        Durbin, Mr. Bingaman, Mr. Kerry, Mr. Dodd, Mr. Reed, Ms. 
        Cantwell, Mrs. Boxer, Mrs. Feinstein, Mr. Biden, Mr. Levin, Mr. 
        Corzine, Mr. Reid, Mr. Schumer, Ms. Stabenow, Mr. Leahy, and 
        Mr. Lieberman):
  S. 3009. A bill to provide econonmic security for America's workers; 
read the first time.
  Mr. WELLSTONE. Mr. President, I am proud to introduce, on behalf of 
myself and a large and bipartisan group of my colleagues, the Emergency 
Unemployment Compensation Act of 2002. I want to especially acknowledge 
the hard, really the relentless work, in particular of Senator Clinton 
and Senator Kennedy on this issue. They care deeply about the plight of 
hard-working men and women in their States and around the country, who 
are struggling, through no fault of their own, to deal with the effects 
of our flagging economy. I commend their work.
  We cannot have a secure Nation if we do not address issues of our 
economic security as well.
  Working men and women around the country and in Minnesota, blue 
collar and white collar, are hurting.
  The economy, battered by corporate accountability scandals, 
plummeting stock prices, and now flagging consumer confidence, is 
deteriorating.
  And the jobs simply are not there. Minnesota has lost more than 
40,000 jobs in the past 18 months. There are currently 123,000 
Minnesotans unemployed. In the second quarter of this year, unemployed 
workers in Minnesota looking for jobs outnumbered unfilled jobs by 2-1.
  The national picture is no different. Nationally, more than 2 million 
jobs have been lost over the last 18 months. We have more than 8 
million men and women out of work. This is the only Administration in 
the past 50 years that has presided over a decline in private sector 
jobs.
  What's more, long term unemployment is up sharply. Nationally, nearly 
1 in five of the 8 million unemployed workers have been out of work for 
6 months or more. Between May and July of this year, around 900,000 
workers exhausted the extended unemployment benefits made available 
through the unemployment insurance extension in March. By the end of 
2002 we expect over 2 million workers to exhaust these benefits.
  In Minnesota, through the end of July, over 17,000 workers had 
exhausted the benefits that we temporarily extended back in March of 
this year, with thousands more likely to exhaust in the future.
  That is why we are announcing today the introduction of the 
``Economic Security Act of 2002.'' It does the following: Extends, 
through July 2003, the temporary extended benefits program, due to 
expire on December 31st. Provides another 13 weeks of extended benefits 
for workers running out of benefits in all states and another 20 weeks 
in high unemployment states.
  This mirrors the benefit extensions signed into law by Bush, Sr.
  The triggers used to determine ``high unemployment'' are: A 4 percent 
Adjusted Insured Unemployment Rate (AUIR) or a 6 percent Total 
Unemployment Rate (TUR).
  The AUIR and the TUR are exactly the same triggers used in the early 
90's. The levels are different to reflect the new reality of a 
significantly lower natural unemployment rate. [In the 90's we used a 5 
percent AUIR and a 9 percent TUR, virtually no states would trigger at 
these levels today].
  In the 90's we extended benefits 5 times, by large bi-partisan votes. 
Three of those votes (91-2; 94-2; and 93-3) were during Bush 1.
  And the need is even greater now. By year's end we expect 2.2 million 
workers to have exhausted. In 1992, for a comparable period, there were 
only 1.4 million workers who exhausted benefits.
  The need is urgent--we should pass this measure immediately.
  Mrs. CLINTON. Mr. President, on September 12, 2001, hundreds of 
thousands of New Yorkers woke up to a changed world, thousands had lost 
family, friends and co-workers to the terrorist attacks of September 11 
and hundreds of thousands more New Yorkers had lost their jobs. America 
watched the scenes of New York and felt pride in the firefighters, the 
police officers, the emergency workers, and the construction workers 
who had all fled to Ground Zero to help with recovery.
  The images that our Nation did not see as prominently were the faces 
of the hundreds of thousands of New Yorkers who were left jobless. 
There were the workers whose jobs were literally destroyed when the 
Twin Towers collapsed, the janitors, the doormen, the waiters and 
waitresses, the secretaries, and messengers. Or, the workers who did 
not work in lower Manhattan, but who felt the ripple effect of the so-
called frozen zone, primarily the hotel workers and small businesses 
owners.
  In the months following September 11, these individuals streamed into 
my office and called on the phone pleading for my assistance. At first, 
New York was able to offer displaced workers needed assistance through 
regular unemployment insurance, UI. And, for those workers who did not 
qualify for regular UI, either because they worked for a small business 
or they were new employees, they were able to receive Disaster 
Unemployment Assistance, DUA, provided through the Federal Emergency 
Management Administration, FEMA.
  In September 2001, the unemployment rate in New York City was 6.3 
percent. And, in the period following September 2001, this rate began 
to spike up such that we experienced unemployment rates that we had not 
seen since the recession of the early 1990s. In December 2001, the 
unemployment rate rose to 7.4 percent, 2.4 percent above the national 
average for the same period. In March 2002, the unemployment rate 
climbed to 7.5 percent and in June 2002 it reached 8 percent. New York 
City lost 150,000 jobs in the aftermath of September 11 and the City is 
not expected to rebound until 2004. New York City was not alone, New 
York State saw a climbing unemployment rate for the same period. In 
September 2001, the unemployment rate in the state was at 5.2 percent; 
it went up to 5.7 percent in December 2001, to 5.9 percent in March 
2002, and to 6.1 percent in June 2002.
  Once it became clear that the economy was not going to recover 
quickly and that it was going to take New York State and New York City 
years to rebuild the economy, I immediately began to fight for the 
extension of Unemployment Insurance and Disaster Unemployment 
Assistance so that New Yorkers could receive a small bit of short-term 
economic security while they searched for jobs. On November 1, 2001, I 
introduced a bill to extend Disaster Unemployment Assistance for an 
additional 13-weeks and, at the same time, I urged the Congressional 
Leadership to include an extension of regular unemployment insurance in 
the economic stimulus package.
  After sustained work on these bills, I was pleased in March 2002 to 
join my colleagues in voting for an economic stimulus package that 
included a 13-week extension of Unemployment Insurance and, in the same 
month, I was pleased that we passed the bill to extend Disaster 
Unemployment Assistance for 13 more weeks.
  These extensions, however, were short-lived. The economy continued to 
weaken with corporate scandals and little job growth.
  In June, I started to hear from thousands of my constituents who were 
still out of work and concerned that their extended unemployment 
benefits would soon run out. They were frightened and unsettled and 
looking to me to help. I saw that this was a serious problem for many 
New Yorkers so I introduced a bill on July 19, 2002, to provide for 
another 13-week extension of unemployment insurance. This bill, S. 
2714, garnered eight co-sponsors. I also introduced a companion bill, 
S. 2715, to extend Disaster Unemployment Assistance. Six of my 
colleagues joined me in co-sponsoring it. I also worked with my 
colleagues on the House to introduce a companion bill. Rep. Charlie 
Rangel, from New York City, introduced H.R. 5089, which received 34 co-
sponsors, including fourteen members of the New York Congressional 
delegation.
  The need to help struggling workers in New York and throughout the 
Nation, however, was not breaking through. On September 13, 2002, I 
made my case for the need to extend unemployment insurance through an 
op-ed in the New York Times, which I would like to submit for the 
Record today. In this article, I refer to Felix Batista, a

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father of four who lost his job as a result of September 11 and has not 
been able to get back on his feet. Felix came to Washington to testify 
at a HELP Committee hearing on September 12, 2002, and told his story 
to all the members of the Committee. I was pleased to meet with him and 
the hundreds of other unemployed New Yorkers who came to town to ask 
that Congress extend unemployment benefits.
  On September 15, 2002, I appeared on Meet the Press with Tim Russert 
and again mentioned the dramatic rise in long-term unemployment and the 
need to extend benefits and help those who are suffering as a result of 
the economy. Last week, I delivered a floor statement on this bill to 
again reinforce the message that I have been trying to get out to all 
of my colleagues. And yesterday, I worked with Senator Kennedy to 
organize a press conference to draw attention to this issue. There, I 
introduced Vera Matty, a former executive assistant at BMG who lost her 
job last November as a result of the recession.
  Today, 24 of my colleagues and I are introducing a bill to extend 
Unemployment Insurance for another 13 weeks and 20 weeks for states 
like New York that are suffering from high unemployment. In addition, 
today the Environment and Public Works Committee approved my bill to 
extend Disaster Unemployment Assistance for another 13 weeks. I am 
pleased that the EPW Committee is taking action on this bill, S. 2715, 
and I hope that the Senate will move quickly to approve it.
  New Yorkers are suffering. We have suffered a double blow as a result 
of September 11 and the recession. And September 20, 2002 there was an 
article in the New York Times stating that New York City's poverty rate 
is growing for the first time in five years.
  This economy was in a recession on September 10. It was devastated on 
September 11 and the people who have exhausted their unemployment 
benefits need our help now.
  Too many Americans are out of work and having a hard time providing 
for their families. Too many have lost their jobs and watched their 
pensions and retirement securities disappear because of the illegal and 
unethical and inexplicable behavior of corporate executives. And 
despite their steadfast efforts to find work and their overwhelming 
desire to get back to work, they remain out of work and struggle to 
make ends meet.
  In New York, there are 135,000 New Yorkers who have exhausted their 
benefits. Across the country, the number of people who have been 
unemployed for 6 months or longer has almost doubled from 900,000 to 
1.5 million in the last year. And that number is expected to increase 
to 2.2 million by December.
  And what has Congress done to ease Americans financial burden during 
these uncertain times? We have extended benefits only once. Contrast 
that with the recession of the early 90's when Congress extended 
temporary benefits five times. This year, even in the wake of massive 
terrorist attacks on our own soil, we have extended benefits only once, 
and once is not enough.
  Congress must extend unemployment insurance and disaster unemployment 
assistance, each for an additional 13 weeks. With more people losing 
their benefits every day, these extensions have to be passed before 
Congress adjourns.
  Extending unemployment insurance is not just the right thing to do; 
it is also the smart thing. According to a 1999 Department of Labor 
study, unemployment insurance stimulates the economy. Every dollar 
spent on unemployment insurance adds $2.5 to the Gross Domestic 
Product. Unemployment Insurance acts as a stimulus because it puts 
money into the hands of people who are likely to spend it immediately? 
They have to buy food. They have to pay rent. They have to pay their 
car payments. So the money goes right into the economy, and it provides 
a stimulus.
  Today, the outlook for job seekers is grim. When President Bush took 
office back in January of 2001, there was approximately 1 job seeker 
for every job. In just a little over a year, those numbers have changed 
to nearly 1 job opening for every 3 applicants. The number of people 
who cannot find jobs for six months or longer, has grown by almost 90 
percent in the past year.
  In fact, the share of the unemployed today who have been without work 
for more than 26 weeks exceeds that of the recessions of the early 90s 
and the early 80s. But only looking at the unemployment rate does not 
paint a complete picture of the economy. My constituents describe an 
endless job search--the hopeless feeling that comes from looking for a 
job for months and months without success.
  Two years ago, America was on the right track when it came to the 
economy: 22 million new jobs, budget surpluses, and historic growth. 
For reasons that escape me, we threw all that good work away. Now we're 
back into deficits. We're not creating jobs. And we're not taking care 
of the unemployed.
  It's time for us to extend benefits just as we did during the 
recession in the early 90's, and stimulate the economy. People are 
hurting and they are running out of benefits and they need Congress to 
act now. We must not adjourn until we pass these needed extensions of 
unemployment insurance.
  I ask unanimous consent that the New York Times article of September 
20, 2002 be printed in the Record.
  There being no objection, the article was ordered to be printed in 
the Record, as follows:

               [From the New York Times, Sept. 20, 2002]

                          Helping the Jobless

                      (By Hillary Rodham Clinton)

       For 23 years, Felix Batista rode the elevator up 106 floors 
     to work as a member of the wait staff at the Windows on the 
     World restaurant. On Sept. 11, everything changed. Mr. 
     Batista was on vacation with his family, and that decision 
     saved his life. That day, he lost 73 coworkers and his job.
       While the first anniversary of the Sept. 11 attacks has 
     come and gone, in New York the needs born out of that tragedy 
     remain. Each step that we take--whether it is investing $20.9 
     billion for cleanup and recovery or financing programs to 
     track the health of rescue workers and volunteers at ground 
     zero--will bring New York closer to recovery.
       But today, the city's unemployment rate has skyrocketed to 
     8 percent. Across the state, 553,000 New Yorkers are out of 
     work, with company layoffs and plant closings happening 
     everywhere from Niagara Falls to Rochester. Now 135,000 New 
     Yorkers like Mr. Batista have exhausted their unemployment 
     benefits and are struggling to pay their bills.
       At this time last year, 800,000 Americans had been out of 
     work for six months or longer. That number has nearly doubled 
     to 1.5 million and it is expected to increase to more than 2 
     million by December.
       Congress must act quickly to extend unemployment insurance 
     and disaster unemployment assistance, each for an additional 
     13 weeks. With more people losing their benefits every day, 
     these extensions have to be passed before Congress adjourns.
       During the recession of the early 90's, Congress extended 
     temporary benefits five times. This year, even in the wake of 
     massive terrorist attacks on our own soil, we have extended 
     benefits only once, and once is not enough.
       The economy was already in a recession on Sept. 1. It was 
     devastated on Sept. 11, and is stalled now. Some forecasters 
     say we are experiencing a ``jobless recovery''--one in which 
     stockbrokers, electricians, insurance agents, computer 
     technicians, textile workers and restaurant workers have 
     formed lines many blocks long to attend job fairs. New 
     revelations about corporate irresponsibility and illegality 
     have added more doubt to an already weakened economy.
       Extending unemployment insurance would put money into the 
     hands of the very people who will turn right around and put 
     it back into our economy. In 1999, the Department of Labor 
     found that when unemployment insurance is extended, every 
     dollar in benefits generates $2.15 in gross domestic product. 
     Giving more purchasing power to the more than 8 million 
     Americans who are currently unemployed would be a powerful 
     stimulus for our economy.
       After Sept. 11, it was clear we needed a serious push for 
     homeland security. Now we need to restore a measure of 
     economic security to all Americans, and extending 
     unemployment benefits is a responsible and affordable way to 
     do so.
                                 ______