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Yes, Republicans, There are Ways to End the Need for Long-Term Unemployment Insurance

December 28, 2013
Blog

By Congresswoman Eleanor Holmes Norton (D-DC)

Today, once again, Republicans will indulge their penchant for slowing economic growth, as 1.3 million Americans lose unemployment insurance benefits during this season of brotherly love, with 3.6 million more to follow next year. Along with the 1.3 million, 240,000 other Americans stand to lose their jobs, which depend upon the disposable income of the unemployed. Yet, for every three job seekers, there is only one job. If they no longer have unemployment insurance, these workers, many with skills, will slip into the uncounted permanently unemployed or onto the disability rolls.

Employers, faced with a surplus of workers, have shown a decided, unfair preference for the most recently unemployed, consigning longer unemployed workers to permanent unemployment, regardless of skill. This phenomenon has grown so serious that some jurisdictions have passed or are considering anti-discrimination legislation. The November drop in unemployment to 7% showed no change in the 4.1 million who have been out of work for 27 weeks or longer. Are we willing to accept the current alternatives – a permanently unemployed class with skills, whom employers will not hire, or periodic fights for additional weeks of unemployment insurance? A third far less costly alternative would be to offer employers an incentive to hire long-term unemployed workers. I have introduced a bill to offer employers a $5,000 tax credit against their payroll tax liability for each new net person hired who has been unemployed for 27 weeks or longer.

The best answer, of course, is economic growth, but Republicans have insisted on cuts that dampen growth and have turned back all the traditional measures to foster economic growth, even badly needed infrastructure investments and unemployment benefits extension. It is too late now to do anything but extend unemployment insurance benefits in January, as the great majority of Americans favor. However, if we are serious about ending the periodic fights for unemployment insurance, we will take action now to assist long-term unemployed workers before their skills atrophy. Most of these workers are victims of the Great Recession, who are in their prime working years and anxious to work. Our response should not be to create a new class of permanently unemployed Americans.

Published: December 28, 2013