Shumlin urges Congress to extend the Emergency Unemployment Compensation program

Governor Peter Shumlin Tuesday called on Congress to extend the Emergency Unemployment Compensation (EUC) program, which expired on December 28, 2013. The Governor said about 650 Vermonters lost the benefit with the program’s expiration, losing an average weekly benefit of approximately $300. Up to 2,300 Vermonters could lose assistance over the first half of 2014.’
‘Vermont has one of the lowest unemployment rates in the country, yet many Vermonters continue to look for secure work as we pull out of the worst recession in history,’ Gov. Shumlin said. He thanked President Obama and Vermont’s congressional delegation for fighting for the program.’
Nationally, more than 1 million jobless workers saw their benefits expire ‘ including 20,000 recent military veterans ‘ and another 1.9 million will lose their unemployment benefits over the first half of 2014.’
Governor Shumlin today joined a handful of other Governors in writing political leaders in Congress to urge extension of the program. The Governors noted that failure to extend benefits harms not only the individuals and families who depend on the help to pay for the basics, but states’ economies that are recovering from the recession.’
‘Our country’s jobless population spends unemployment benefits on rent, groceries, and other key necessities for themselves and their families. Our businesses and local communities benefit from the increased spending, and in turn, the EUC program helps to increase economic activity,’ Gov. Shumlin and the others wrote.’
‘Thus, not only does the EUC program benefit the long-term unemployed, but it also helps to inject revenue into our local economies, which saves and creates critically needed jobs throughout our economy,’ the letter continued. ‘For this reason, economists widely recognize that government spending on unemployment insurance benefits is one of the most effective tools for increasing economic activity in a period of persistently high unemployment.’’
Shumlin also applauded the US Senate for voting to begin debate on the unemployment insurance extension ‘ a significant step forward for the legislation in that chamber.
Meanwhile, in what Senator Bernie Sanders (I-Vermont) called ‘an important victory,’ legislation to renew jobless benefits for the long-term unemployed cleared a key Senate hurdle today.
‘At a time of growing wealth and income inequality, we cannot turn our backs on 1.3 million people who would be left out in the cold without this help,’ said Sanders, a cosponsor of the bill that survived a 60-37 test vote on whether to debate a three-month extension of the program. He noted that unemployment insurance kept 2.5 million Americans, including 600,000 children, out of poverty in 2012.
‘It makes both moral and economic sense to help people looking for work,’ Sanders added. Unless the benefits are restored and job hunters receive disposable income, the economy is expected to lose more than 200,000 jobs this year, according to the Congressional Budget Office. Each dollar spent on unemployment insurance benefits generates $1.55 in economic recovery.
Congress has reauthorized the extended unemployment benefits program 11 times since the recession began in 2007, but benefits expired last month for 1.3 million Americans, including 600 Vermonters, who have been out of work for longer than 26 weeks. An additional 1.9 million people nationwide, including 2,300 Vermonters, will lose benefits during the first half of this year unless Congress renews the program.
Today, while there has been some modest improvement in the overall economy, there still are three job applicants for every job opening.’ There simply aren’t enough jobs out there for the 11 million Americans who are actively seeking work. As a result, 37 percent of all unemployed Americans have been out of work for more than six months.
The Emergency Unemployment Compensation program was first signed into law by President George W. Bush in June 2008. At that time, the unemployment rate was 5.6 percent and the average length of unemployment was 17.1 weeks. Today, the official unemployment rate is 7 percent and the average length of unemployment is more than 36 weeks. At no time since 1958 has Congress failed to extend emergency unemployment benefits when long-term unemployment has been so high.
Source: Shumlin's office 1.7.2014