Congressman Dan Kildee: Unemployment Insurance Should Be Extended Before End of Year for Those Continuing to Look for Work

Press Release

Congressman Dan Kildee (MI-05) today cosponsored legislation, the Emergency Unemployment Compensation Extension Act of 2013, which would immediately extend emergency unemployment compensation (EUC) benefits for one-year. Without congressional action, benefits will completely stop for 1.3 million Americans on December 28th -- including 43,800 in Michigan. The Economic Policy Institute estimates cutting off extended unemployment benefits would cost the U.S. economy 310,000 jobs next year because of reduced consumer demand.

"As our economy continues to recover and people are still getting back on their feet, we shouldn't be stopping emergency unemployment compensation for those continuing to look for work," Congressman Kildee said. "Completely cutting unemployment compensation would reduce consumer demand and slow job growth -- exactly the opposite of what we should be doing as our country continues its economic recovery. Congress should not adjourn until we extend emergency unemployment benefits for over a million Americans."

The November jobs report, announced by the U.S. Bureau of Labor Statistics this month, showed that nationally, the unemployment rate fell to its lowest level -- 7 percent -- since 2008. However, while businesses have added jobs for 45 straight months, totaling over 8 million private sector jobs, our national economy still has two million fewer jobs than before the recession. This jobs deficit has led to a higher percentage of jobless Americans who have been unemployed for longer than six months. Over 4 million people -- about 37 percent of the unemployed -- are now long-term unemployed, meaning they have been unemployed for 27 weeks or more.

Conversely, Michigan's unemployment rate has risen from 8.4 percent in April 2013 to 9 percent currently.

"Nationally, we've seen progress in our economic recovery; 45 straight months of private sector job growth and a five-year low in the national unemployment rate," Congressman Kildee said. "In Michigan, however, we've recently seen the unemployment rate spike to 9 percent. Far too many Michiganders are still out of work, and now is not the time to pull the rug out from under them by letting unemployment benefits expire."

In seven states in particular -- including Michigan -- that have cut their regular employment benefits, the expiration of the EUC program would result in jobless individuals receiving fewer weeks of benefits than were previously available when the national unemployment rate was below 5 percent (the current rate is 7 percent). Thus, 43,800 Michiganders stand to lose their EUC on Dec. 28th, but another 86,500 stand to lose their benefits in the first six months of 2014.

Source