WILMINGTON, Del. – With 3,600 Delawareans scheduled to lose their federal unemployment insurance at the end of the month and another 4,800 to follow within the next six months, U.S. Senator Chris Coons (D-Del.) is urging Congress to take action to preserve this critical support for jobseekers. In a letter sent to Senate leadership Friday, Senator Coons, Senator Jack Reed (D-R.I.), and 30 of their colleagues called for the continuation of federal unemployment insurance through next year.
With just 23 days before federal UI benefits are set to expire, the senators wrote: “We are writing to urge the continuation of federal support for unemployment insurance, a critical component of our ongoing recovery and a lifeline to millions of Americans as they search for work in this challenging economy. As it stands now, a few days after the holiday season ends, unemployment insurance will abruptly terminate, cutting off support for 1.3 million Americans.”
The unemployment insurance system is a partnership between the federal government and state governments that provides a temporary weekly benefit to qualified workers who have lost their jobs and are seeking work. The amount of that benefit is based in part on a worker’s past earnings.
Failure to preserve UI will hurt 1.3 million American families, who will be cut off at the end of the year, and nearly 1.9 million more who will be denied access to the emergency program during the first six months of next year. If Congress does not renew the law, individuals who file for unemployment next year will qualify for state benefits only, which last a maximum of 26 weeks.
Although the economy has been expanding for over four years, unemployment remains unacceptably high. A new report by the National Employment Law Project shows long-term unemployment remains higher than during any other downturn since the Great Depression, with 4.1 million job-seekers, or 36.1 percent of all the unemployed, remaining out of work for six months or more.
The Economic Policy Institute estimates that the failure to renew UI could cost our economy 310,000 jobs in 2014.
Over the years, the non-partisan Congressional Budget Office (CBO) has found that extending UI is among the most cost-effective programs for reducing unemployment and stimulating the economy.
Last month, the non-partisan Center on Budget and Policy Priorities reported: “the premature turn towards budget austerity since 2010 has been a drag on economic growth and job creation. Extending Emergency Unemployment Compensation (EUC) would help offset that drag as well as reduce hardship among jobless workers and their families. In contrast, letting EUC expire would increase hardship and cost the economy jobs.”
Text of the letter follows:
December 6, 2013
Dear Majority Leader Reid, Republican Leader McConnell, Chairman Baucus, and Ranking Member Hatch:
We are writing to urge the continuation of federal support for unemployment insurance, a critical component of our ongoing recovery and a lifeline to millions of Americans as they search for work in this challenging economy. As it stands now, a few days after the holiday season ends, unemployment insurance will abruptly terminate, cutting off support for 1.3 million Americans.
Despite the tremendous uncertainty caused by the brinksmanship over funding the government and near-default, the economy has had 45 straight months of private sector job growth and created a total of 8.1 million jobs over that period. However, we are still far from regaining the ground lost during the Great Recession. The national unemployment rate has hovered around and over 7 percent and 10.9 million Americans are out of work and looking for a job. Unemployed workers continue to face a daunting labor market, where for every one job opening, there are approximately 3 unemployed workers. That’s why it’s imperative that we pass legislation that will get Americans back to work and that we don’t let unemployment insurance terminate at the end of the year.
Federal support for unemployment insurance has been a major boon to millions of Americans that have been laid off through no fault of their own. Since July 2008 unemployment insurance has provided over $255 billion in direct support. Over that period of time, we have made significant reforms, like those that avert layoffs and help people find work faster. Our constituents and the economy still need the support; the Economic Policy Institute estimates that the expiration of unemployment insurance will cost the economy 310,000 jobs and slow growth by 0.2 percent over the course of next year.
Continuation of unemployment insurance has traditionally passed on a bipartisan basis because of the tremendous support it provides to the unemployed, their families, and the economy. We urge you to ensure that unemployment insurance is continued before its expiration at the end of the year.
Sincerely,
Jack Reed (D-RI)
Tom Harkin (D-IA)
Tim Kaine (D-VA)
Ed Markey (D-MA)
Kirsten Gillibrand (D-NY)
Jeanne Shaheen (D-NH)
Sheldon Whitehouse (D-RI)
Robert Menendez (D-NJ)
Carl Levin (D-MI)
Barbara Boxer (D-CA)
Chris Coons (D-DE)
Mazie Hirono (D-HI)
Elizabeth Warren (D-MA)
Jeff Merkley (D-OR)
Bob Casey (D-PA)
Al Franken (D-MN)
Sherrod Brown (D-OH)
Ron Wyden (D-OR)
Jay Rockefeller (D-WV)
Brian Schatz (D-HI)
Patty Murray (D-WA)
Debbie Stabenow (D-MI)
Bernie Sanders (I-VT)
Dick Durbin (D-IL)
Richard Blumenthal (D-CT)
Amy Klobuchar (D-MN)
Patrick Leahy (D-VT)
Dianne Feinstein (D-CA)
Christopher Murphy (D-CT)
Tom Udall (D-NM)
Bill Nelson (D-FL)
Cory Booker (D-NJ)