[Congressional Record Volume 149, Number 17 (Thursday, January 30, 2003)]
[Senate]
[Page S1834]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KENNEDY (for himself, Mr. Smith, Mr. Daschle, Mr. Reed, 
        Mr. Durbin, Mr. Sarbanes, Mrs. Clinton, Ms. Cantwell, and Mr. 
        Rockefeller):
  S. 270. A bill to provide for additional weeks of temporary extended 
unemployment compensation, to provide for a program of temporary 
enhanced unemployment benefits, and for other purposes; to the 
Committee on Finance.
  Mr. KENNEDY. Mr. President, Congress took an important step forward 
for working families earlier this month by providing unemployment 
benefits for nearly 3 million jobless Americans. These benefits are a 
lifeline for the millions of workers who have lost their jobs through 
no fault of their own, but as we all know, there is much more work to 
be done on this basic issue. One million workers have run out of their 
State and Federal benefits and remain without jobs. Clearly, these 
workers deserve our help too.
  In fact, there is an additional category of workers who have not even 
received a dime of unemployment benefits. They paid into the 
unemployment insurance fund, and they lost their jobs due to the 
failing economy, but they have been left behind by the outdated 
eligibility rules in our unemployment laws.
  Today, I am introducing the Economic Security Act of 2003 to cover 
the 1 million who have exhausted their benefits, as well as the nearly 
1 million low-wage and part-time workers currently not eligible for 
unemployment benefits, and to increase benefit levels to help keep 
families out of poverty during periods of unemployment.
  Nationally, only about half of unemployed workers received 
unemployment benefits last year. This number has dropped precipitously 
since 1975 when 75 percent of unemployed workers received benefits. 
This increasingly serious problem is a result of laws implemented in 
the 1980s to restrict eligibility for the unemployment insurance 
program. Because of these restrictions, many of the unemployed workers 
who do not receive benefits today are excluded because they are part-
time or low-wage workers.
  In all but 12 States, low-wage workers are ineligible for benefits 
because their most recent earnings are not counted. As a result, many 
former welfare recipients--success stories who have recently entered 
the workforce, have now lost their jobs because of the economic down-
turn, but they are being denied the unemployment benefits they deserve. 
Many minimum wage workers, who work hard and play by the rules and have 
not seen a raise in 6 years, are also left behind. Those low-income 
workers are now left without a safety net.
  In addition, the majority of States do not provide benefits to part-
time workers, despite the fact that part-time workers are an essential 
part of the labor force. They now comprise nearly 20 percent of the 
workforce. Part-time workers also represent a large share of the 
unemployed, one in five unemployed workers today were working part-time 
before they lost their jobs. Women now represent 70 percent of the 
part-time workforce, compared with 44 percent of full-time workers, and 
17.5 percent of part-time workers earn less than $15,000 a year. 
Despite their significant labor force role, part-time working adults 
are half as likely as full-time workers to receive unemployment 
insurance benefits. Nationally, only 12 percent of unemployed part-time 
workers receive unemployment benefits.
  Under the Economic Security Act, the Federal Government will 
reimburse States for 1 year for the cost of providing unemployment 
benefits to two categories of workers: 1. Those who would be eligible 
for regular unemployment compensation if their last completed quarter 
of earnings is included in their wage record, and 2. those seeking 
part-time employment.
  The bill will also provide Federal funds to states to increase the 
level of unemployment benefits. Sadly, these benefits today are often 
not sufficient to meet basic needs such as paying the rent or putting 
food on the table. In 2000, the average unemployment benefit replaced 
only 33 percent of workers' lost income, a steep drop from the 46 
percent of wages replaced by benefits during the recessions of the 
1970's and 1980's. During an economic crisis, unemployed workers have 
few opportunities to rejoin a declining workforce. They depend on 
unemployment benefits to live.
  Raising benefits will enable these workers to support their families 
and invest more in the economy. They immediately spend their 
unemployment insurance benefits in their communities, and that spending 
will provide a needed, immediate stimulus to the economy. In fact, 
every dollar spent on unemployment benefits boosts the economy by 
$2.15.
  The Economic Security Act of 2003 will provide Federal reimbursements 
for states which increase their weekly unemployment checks by the 
greater of 15 percent or $25 for 1 year. Under this provision, the 
average recipient will have an extra $135 a month. Unemployed 
households will use this amount to help pay the rent, buy groceries, 
keep the family car running, or hire a babysitter during job interview. 
This boost in unemployment benefits will stimulate the economy and help 
these laid-off workers support their families while they look for a new 
job.
  State unemployment insurance administrators often fall short of the 
funds they need to administer benefits efficiently and promptly, and to 
see that all who are eligible receive their benefits. The Act provides 
$500 million to State Unemployment offices to offset the administrative 
expenses associated with implementing the new coverage and benefit 
changes, and to provide better employment services to workers receiving 
unemployment compensation.
  Congress cannot continue to ignore the plight of millions of 
Americans hurt by economic forces beyond their control. As we work 
together to get the economy moving again, we must also work together to 
see that no one is left behind. We have a responsibility to give help 
and hope to these deserving Americans by strengthening unemployment 
insurance to cover all unemployed workers, and I urge my colleagues to 
give high priority to this needed reform.
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