October 2, 2008
Statement

Floor Statement on Extending Unemployment Insurance Benefits

   Mr. REED. Mr. President, I rise also to speak about a very important topic, and that is the need to enact legislation to help unemployed Americans amid the current economic downturn. Yesterday, we passed an unprecedented package of support for the financial markets. There are many Americans who are suffering as grievously as our financial markets and those who work in the financial markets. There are an estimated 800,000 unemployed workers who will begin to run out of emergency unemployment compensation because jobs are too scarce in the current economic climate. We cannot turn our back on these 800,000 Americans. We need to help them. In June, I was pleased by the inclusion of 13 weeks of emergency unemployment compensation to all States in the war supplemental spending bill. This help was critical and something I had advocated for a very long time.

   Too many individuals in our States who have been unemployed are still looking for work, but they can't find it and they are running out of benefits. The labor market continues to deteriorate. This impact is becoming magnified as a result of the continued unraveling of the financial marketplace. We are seeing--in fact, one of the reasons we acted last evening--credit markets seize up. We are seeing auto sales lots not able to finance the acquisition of cars and buyers not able to buy automobiles. We are seeing a host of problems that manifest themselves in GDP statistics, unemployment statistics, and in the lives of ordinary Americans it is manifested in the stark reality of no work and a family to support. We have experienced the eighth straight month of job declines. Unemployment has soared to a 5-year high of 6.1 percent; 16 States now have an unemployment rate of 6.5 percent or greater. New national unemployment numbers for September will be released tomorrow morning. It is expected that these numbers will continue the downward trend, given the sustained notices of plant closings, mass layoffs, and cutbacks for small businesses trying to survive in this environment. In my State of Rhode Island, the situation is more bleak: 8.5 percent are jobless right now. It is the second highest level in the Nation, a jump of over 3.4 percent in the course of the last year alone. We are hemorrhaging jobs in Rhode Island. It is the highest unemployment rate in Rhode Island since November 1992.

   In addition to this evaporation of jobs is the acceleration of prices. Gasoline, food, and health care costs are all accelerating. Families are caught in a tremendous squeeze. That is why I am pleased to have introduced bipartisan legislation, which has been cosponsored by more than 20 of my colleagues, including the chairman of the Senate HELP Committee and the Finance Committee, Senators Kennedy and Baucus, to extend unemployment insurance benefits so people can pay their bills while they look for work. This measure provides 7 weeks of federally funded unemployment insurance for individuals who have exhausted their benefits, and it provides 13 additional weeks of benefits to unemployed workers in States that have been hit particularly hard by this economic downturn, States that have unemployment rates above 6 percent. Right now 17 States would qualify for this high unemployment figure.

   The bill also includes a provision to help qualifying States, such as Rhode Island, replenish their unemployment insurance trust funds which help cover a portion of unemployment insurance benefits. The Senate stimulus package that failed last week included these same provisions to extend unemployment insurance. We need to take aggressive steps to help these families who are struggling to make ends meet. I ask that my colleagues join me in supporting this legislation.

   I was prepared to ask consent to pass this legislation, S. 3507, today, but I understand there is an objection by the minority. Passage of this legislation is vital. Since it appears there will be a lameduck session after the election, I will work with my colleagues to bring this legislation, if possible, to that lameduck session to get it passed. We have to help these Americans.

   In summary, if we could afford to authorize $700 billion last evening to assist financial forces to unclog credit markets, to begin to provide support for the economy, then we certainly can afford to help individuals who are looking for work and can't find it and are desperate. It is only right. I hope we can do that when we return.

   I yield the floor.

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