DeLauro Presses for Extension of Unemployment Benefits as Piece of Economic Recovery Package

Press Release

Congresswoman Rosa L. DeLauro (CT-3), standing with Dan Torre and Jon Marks - searching for work in this economic crisis - and Bill Villano, Executive Director of the WorkForce Alliance, pushed for a second extension of unemployment benefits to be part of the economic recovery package. It is estimated that doing so would benefit 86,000 people in Connecticut, as well as the nearly 800,000 workers nationwide projected to exhaust their current extended unemployment benefits in October - a number that will grow to 1.1 million by the end of 2008.

"We are at a critical moment for Connecticut and its residents. Times are tougher than they have ever been in recent memory and they could be getting even more difficult in the months ahead. An alarming report today shows that the economy this quarter has contracted sharply, promising future rises in unemployment," said DeLauro.

The Commerce Department announced today that the gross domestic product, which measures the output of goods and services, fell 0.3% in the third quarter - the weakest quarterly reading in seven years. And personal consumption spending fell at a 3.1 percent annual rate, the first time spending has contracted since the recession of 1991.

"This economic crisis demands that we put the concerns of the middle class front and center, and ensure that upward mobility is once again a possibility for all Americans. And we can begin right away by providing immediate relief in the form of unemployment insurance - an important and effective way to boost our economy and provide a safety net for people who have fallen out of work," said DeLauro. "The critical recent action by the federal government to get the credit markets moving again must be coupled with economic recovery measures that confront rising unemployment in the short term, and jumpstart job creation in the long term by investing in our transport and roads, the infrastructure of our economy and new energy."

Despite the Congressional action in June to pass legislation providing 13-weeks of emergency unemployment compensation to all states, for many workers that extension is about to run out. Last month, the House passed an extension of seven weeks for workers whose benefits have run out, and an added 13 weeks for workers in states with unemployment rates above 6%. The Senate has not voted on this extension, but with 800,000 workers - parents trying to make ends meet - exhausting their extended benefits in October alone, this need is urgent.

On the outlook for action, DeLauro added, "There is an understanding that this moment requires bold solutions that will drive economic growth and job creation directly."

Congress has held a series of hearings over the last few weeks about what an economic recovery package should look like. During a Budget Hearing, DeLauro questioned Federal Reserve Chairman Ben Bernanke on the package, making it clear that extending Unemployment Insurance would be a top priority.

DeLauro concluded, "We are ready to make this happen. I believe we will bring a substantial new economic recovery package for a vote in the House by mid-November. And extending unemployment insurance will be at the heart of it, because it is one of the most-effective and fast-acting ways to stimulate the economy. This is not a handout - it is good economics and it is basic human decency."

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