10.07.02

Cantwell, workers push for unemployment benefits extension

SEATTLE, WA - U.S. Senator Maria Cantwell (D-WA) and Washington workers pushed for an extension of federally-funded unemployment benefits that are due to expire at the end of the year.

"Too many people throughout the state are having trouble finding work and are worried about how they will pay their mortgages, energy bills, utility bills and put food on the table," Cantwell said. "These are hard working people who just need a little extra help while they look for a job in a tough economy. Congress must pass this desperately needed unemployment extension."

Cantwell appeared at a rally along with Kathleen McDermott, a laid-off Boeing worker; Rick Bender, President of the Washington state Labor Council; Steve Williamson, Executive Secretary of the King County Labor Council; and Paul Sommers, PhD, Economist, Evans School of Public Affairs to rally support for the extension of unemployment benefits.

"When I was laid off, I thought 'what will I do now?'" Kathleen McDermott, a laid-off Boeing worker, told the rally. "This has given me hope."

Last week, Cantwell joined her Senate colleagues in introducing legislation extending federally-funded unemployment benefits, which are set to expire on December 31st, 2002.

In the 1990's, Congress passed extended unemployment five times. During this latest recession, Congress passed one extension in March 2002. Last March, Cantwell helped pass legislation providing extended unemployment benefits through the end of the year. In its first six months, Washington state has received $300 million in federal funds under that extension, leading to an estimated $645 million of economic activity in our state. In August alone, the benefits helped 56,000 workers as they looked for new jobs. But if Congress does not act swiftly, all of this federal assistance will expire on December 31st.

"We will not return to spring, 2001 unemployment levels in Washington until sometime in 2004," Paul Sommer, an Economist at the Evans School of Public Affairs said. "It will be a slow, slow crawl out of this recession. The stimulus of extended benefits would be very welcome. We have the right medicine to respond to the problem. It is a matter of making it happen."

KEY FACTS:

Washington State is in the middle of an economic crisis:

Over the last 12 months, the state has lost 50,000 jobs. Over 200,000 Washingtonians are unable to find work, leaving the jobless rate at 7.2 percent, up from 4.7 percent three years ago. And last week, Boeing announced it would exceed its original projection of 30,000 layoffs. Nationally, since the new Administration took office we've witnessed:

The weakest economic growth in 50 years. $440 billion of lost 401(k) and IRA retirement savings in the last year. median family income down last year -- the first decrease since 1991. the poverty rate up for the first time since 1992. And that weak economic growth has resulted in a dramatic rise in workers reaching the limits of their unemployment benefit eligibility:

Through last month, 1.5 million workers had exhausted all extended unemployment benefits. By the end of the year, more than 100,000 Washingtonians may exhaust their regular unemployment benefits. And more than 60 percent of those receiving extended federally-funded unemployment benefits are now exhausting those benefits before finding work.