Congressman Sander Levin

 
 
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The Detroit News
June 7, 2008
David Shepardson
Staff Writer
 
Dems Urge Jobless Benefit Extension
 
House Democrats urged President Bush to support an extension of unemployment benefits after the Labor Department reported Friday that the nation's jobless rate jumped to 5.5 percent in May.

The U.S. economy shed 49,000 jobs and jumped by 0.5 percent -- the highest monthly increase in 22 years. The number of unemployed jumped by 861,000 in May, as thousands of teenage workers didn't immediately find summer jobs.

The total number of unemployed has increased by 1.2 million over the last year, while 37 percent of unemployed people have exhausted their benefits.

"We hope you agree that we should not abandon hard-working families who are suffering the effects of the current downturn in the economy," said the letter written by Reps. Charles Rangel, chairman of the House Ways and Means Committee, Sander Levin, D-Royal Oak, and Jim McDermott, D-Wash.

White House spokeswoman Dana Perino said Friday: "We're obviously not happy with the unemployment number," but she added that "no administration has increased or extended unemployment benefits while unemployment was this low."

Levin, who chairs a Ways and Means subcommittee on trade, said the issue has become the No. 1 priority of many House Democrats. He said that with 3.5 million people exhausting their benefits this year, it was time to act. The White House's reaction "was the height of insensitivity," he said, saying the spike in jobless claims "pulls the rug out from inaction."

Levin said he hopes the boost in unemployment spending can be attached to the supplemental military spending bill that could go to the president as early as next week. The boost in unemployment pay would cost an estimated $11.1 billion over 10 years.

Last month, the Senate passed a bill that would extend unemployment compensation by 26 weeks to 52 weeks in high unemployment states, such as Michigan, and by 13 extra weeks in all states.

Michigan's 6.9 percent jobless rate leads the nation. The state shed 18,600 jobs in April, the second-highest loss behind Florida

Over the past year, 156,000 Michigan residents have exhausted their unemployment benefits and another 72,000 are expected to exhaust theirs in the first half of this year.

Other states that would be eligible for the additional weeks are California, Alaska and Rhode Island.

A report released Thursday by the Bureau of Economic Analysis showed Michigan was one of three states with negative economic growth in 2007.

Michigan saw its economy contract by 1.6 percent last year. The state's economy has contracted for two straight years and three out of four.Michigan has had no net economic growth since 2000, the Federal Reserve Bank of Chicago reported.

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