[Congressional Record Volume 159, Number 175 (Wednesday, December 11, 2013)]
[Senate]
[Page S8804]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNEMPLOYMENT INSURANCE EXTENSION
Mr. HARKIN. Madam President, today I wish to speak about one of the
most important jobs the Senate must do before we go home for the
holidays--extend Federal unemployment insurance benefits. This is a
program that has helped tens of millions of Americans weather the storm
of the difficult economy over the last several years. It has helped
workers put food on the table, kept a roof over their heads, and kept
millions out of poverty.
But this program is at risk. If Congress fails to extend it, then
just 3 days after Christmas on December 28, 1.3 million Americans will
be abruptly cut off from their vital unemployment insurance benefits.
But it does not stop there: by the end of next year another 3.6 million
Americans will be cut off from unemployment insurance. That's a total
of 4.9 million Americans--including 35,500 Iowans, who have spent 6
months or more trying to find new work, going out and pounding the
pavement day after day, who will now have to spend this holiday season
worrying about how they and their families and children are going to
survive. How will they pay their heating bill, their rent, or their
mortgage, much less afford gifts for their family?
Congress has a moral responsibility to continue the Federal
unemployment insurance program to ensure that Americans and their
families can survive while trying to get back on their feet and find
new work. It is simply unacceptable for us to return to our home States
to celebrate the holidays without answering our constituents' call to
keep this critical lifeline going. They are depending on us.
Unfortunately, some people seem to think that the misfortune of
losing a job means that these hardworking folks are to blame, or that
they do not deserve this basic lifeline. But they are not. In fact,
participation in the unemployment program requires that workers have a
significant work history, which means they have paid into the system
and earned these benefits. Collecting benefits also requires workers to
have lost their job through no fault of their own, and to be actively
looking for work. The fact is times are still tough and jobs are hard
to come by. For every job opening there are three job seekers. That is
why so many millions of workers have been searching for new work for
such a long period of time. Our economy still needs more jobs, and in
the meantime, we must make sure that workers who are out of luck in
this economy have some basic income to make ends meet. We cannot
abandon them now.
These benefits are crucial for keeping households afloat. For many,
this is their last lifeline. If Congress fails to act, millions of
people will face real economic devastation. The Council of Economic
Advisers found that in 2012 unemployment benefits kept 2.5 million
people from falling below the poverty line, including 600,000 children.
By helping families to make ends meet, unemployment benefits are a
help not just to jobseekers and their families, but to our economy as a
whole. After all, one of the best ways to grow our economy and to
create jobs is to support spending power. And that is exactly what
unemployment benefits do. When unemployed workers can continue to pay
their bills, businesses can continue to make sales and provide
services, and the economy grows. The Congressional Budget Office finds
unemployment benefits to be one of the most efficient fiscal policies
to improve economic growth. If Federal unemployment benefits are
extended through 2014, it would increase GDP by 0.2 percent and create
200,000 jobs. Those jobs could be lost if we do not extend this
program.
It's important to remember who is most affected by long-term
unemployment. Unfortunately, it is older workers. In a cruel state of
affairs, those who have been working for decades, but who are not yet
at retirement age, have the hardest time finding new work. According to
the Bureau of Labor Statistics, over half of jobseekers between ages 55
and 64 have been searching for work for over 6 months. That is compared
to 42 percent of those between 25 and 54. These older workers can't yet
afford the luxury of retirement. They need to continue working to
support their families and hopefully one day save enough to retire with
security.
Congress has a long history of acting to ensure basic security for
working people during tough economic times. Over the last 50 years,
during seven different economic downturns, Congress has provided
Federal unemployment benefit programs to assist workers when
unemployment is high. The current program was put in place in 2008 by
President George W. Bush when the unemployment rate was 5.6 percent.
While unemployment is falling, it is still at a high rate, 7 percent.
Long-term unemployment has been at record highs for years. Currently 37
percent of unemployed workers have been looking for new work for at
least 6 months. Congress has never allowed Federal unemployment
benefits to expire while the long-term unemployment rate was above 23
percent. Our economy is recovering, but we are not there yet. While the
duration of Federal benefits has appropriately been scaled back as the
recovery has progressed, there is no question that American families
are still depending on Federal unemployment benefits, and there is no
justification for letting the current program expire now.
We cannot let vulnerable Americans be cut off from their unemployment
insurance during their time of need. We cannot turn the lights out on
millions of Americans. Working families deserve peace of mind and our
continued support while they look for jobs during these tough times. I
urge the Senate to act to extend unemployment benefits, so that
families do not have to wonder how they will survive in the New Year.
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