Workers Scrooged Out Of Benefits, Says Moving Ideas Network

12/20/2002

From: Shireen Zaman of Moving Ideas Network, 202-276-6455 ext. 116 or szaman@prospect.org

WASHINGTON, Dec. 20 -- Three days after Christmas about 780,000 jobless Americans will lose their benefits through the federally funded Temporary Emergency Unemployment Compensation (TEUC) program. President Bush weighed in on this dilemma two weeks before the program's expiration date by urging Congress to make its first order of business the reinstatement of the program and to have benefits be retroactive. Yet he doesn't identify the many workers who won't benefit from a mere extension of the federal program. The timing and inadequacy of this proposal demonstrates Bush's disconnect with the lives of working Americans, who live paycheck to paycheck.

Those not included in the President's address:

-- 95,000 jobless workers per week will exhaust their regular, state- funded unemployment benefits after December 28 but will not receive TEUC benefits if the program is not continued. By the end of March, 1.2 million workers are expected to fall into this category. (Center on Budget and Policy Priorities) http://www.cbpp.org/12-19-02ui2.htm

-- Over 1 million Americans have already exhausted their state and federal unemployment benefits and are still unemployed. (Working for Change) http://www.workingforchange.com/activism/action.cfm?ItemId=141 49&afccode=UNE001

Unemployment Insurance (UI) should expand:

During the last recession, over 70 percent of UI recipients would have fallen into poverty without extended UI benefits, according to a study conducted by Mathematica Policy Research (1999). (National Employment Law Project) http://www.nelp.org/pub187.pdf

Many unemployed workers are currently ineligible for UI because they have only worked part time or have earned too little money in the months preceding their unemployment. Expanding the criteria for UI benefits would help those hurt by the recession and also increase the purchasing power of consumers. (Economic Policy Institute) http://www.epinet.org/briefingpapers/bp_2002_12_stimulus.html

In past downturns, temporary federal unemployment benefit programs ended only after unemployment had receded substantially from the peak levels reached during the downturn. When the program began in March 2002, the unemployment rate was 5.7 percent, it rose to 6.0 percent in November and is projected to remain near 6.0 percent until the middle of 2003. (Center on Budget and Policy Priorities) http://www.cbpp.org/12-6-02ui2.htm

------ Moving Ideas is a network of more than 100 public interest groups, ranging from large think tanks to grassroots networks. We aim to promote the work of our member groups and allies by supplying essential facts on timely issues. For more information see www.movingideas.org.