09.25.02

Senator Maria Cantwell's Statement (as prepared) on the Emergency Unemployment Compensation Act of 2002

WASHINGTON, DC – Senator Maria Cantwell (D-WA) today joined her colleagues in introducing legislation to extend unemployment benefits that are set to expire on December 31, 2002. Last August, 56,000 unemployed workers in Washington state received these benefits while looking for a new job. No state needs this extension more than Washington. Congress passed an extension last March that provided $300 million in federal funds for extended unemployment benefits in its first six months. Those funds led to an estimated $645 million of economic activity. If Congress does not extend benefits soon, they will expire at the end of the year.

Senator Cantwell’s statement follows:

"No other state needs this legislation more than my home state of Washington. Washington state is in the middle of an economic crisis resulting from a severe downturn in both the aviation and high-tech industries. With a jobless rate of 7.2 percent, we are second only to Alaska in unemployment. 202,000 Washingtonians are unable to find work. Over the last 12 months, our state has lost 50,000 jobs, 60 percent of which were in the high-paying manufacturing sector. And just this week, Boeing announced it would exceed its original projection of twenty to thirty thousand layoffs.

"Last month alone, 56,000 unemployed workers in Washington state received extended unemployment benefits. Those benefits brought $85 million to the state, generating an estimated $180 million in economic activity. But all extended benefits will expire on December 31, 2002 unless we pass the extension we are proposing today. We cannot afford to wait any longer. Congress must act now to provide economic security for all Americans.

"Extending benefits will boost the economy by injecting cash into communities with high unemployment rates. A 1999 Department of Labor study concluded that for every $1 spent on unemployment benefits, $2.15 of economic activity was generated. The cost of this extension will be covered by the unemployment insurance trust fund, which with $30 billion is in healthy shape.

"Extending unemployment benefits will help unemployed workers make mortgage payments, put food on the table, and pay utility and health care bills while they look for new jobs. Extending benefits will give people the opportunity to upgrade skills that are crucial for success in the 21st century economy.

"Congress created unemployment insurance in 1935 to help unemployed workers get through the Great Depression. In the early 1990s, Congress extended benefits five times, providing 33 weeks of extended benefits for 19 high-unemployment states and 26 weeks for all others. This year, Congress has extended benefits only once, providing less than one-half the level of benefits that were provided in the 1990s. With national unemployment at 5.7 percent and two million jobs lost since January 2001, it is clear that we must to do more."