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Congress Gives Jobless Unwelcome Holiday Gift: An End to Emergency Unemployment Benefits
January 2, 2004

For the second year in a row, Congress stiffed Americas jobless workers out of emergency federal unemployment aid at Christmas. Every week since December 21, approximately 90,000 more people are losing the vital benefits.

The emergency assistance, which is only approved on a temporary basis during recessions, provides unemployed workers with several weeks of extra financial assistance after state benefits expire. Usually amounting to about half of a workers paycheck, the aid has the dual benefit of supplying crucial extra income while circulating more money in communities. Congress voted to begin the programpaid out of the federal unemployment trust fundin 2002 and has renewed it twice since.

Republican leaders, touting figures pointing to an improving economy, say an extension is not necessary. President Bush has refused to address the question, saying vaguely, and only through his spokesman, "Well continue to work with Congress on that matter."

But disappointing new consumer confidence indicators, home sales and manufacturing performance all indicate a full-blown recovery continues to elude the United States. Economists point to the sluggish labor market as one of the reasons.

The number of people who have gone without work for more than six months has climbed in the past yearfrom 1.8 million in November 2002 to more than 2 million last month, according to Labor Department figures.

"To acknowledge that people are hurting and unemployed would be to admit the Republican job creation program is not working," said IBEW International President Edwin D. Hill. "Their arrogance in the face of incontrovertible jobless statistics does not give me much hope they will do the right thing."

A survey released December 30 found out of 5,000 households, the number saying jobs are "hard to get" rose to 32.6 percent this month, from 29.6 percent. The number saying jobs are "plentiful" slipped to 12.5 percent, from 13.5 percent. Americans' appraisal of business conditions also lost ground, according to the survey.

Despite the promises of the Presidents recent tax cut packages, the "Jobs and Growth Plan" that took effect in July 2003, the minimal growth is not fueling large-scale job creation, according to the Economic Policy Institute. The presidents economics staff, the Council of Economic Advisers, projected that a total of 1,530,000 jobs would be created in the first five months after the tax cuts took effect. In fact, only 271,000 jobs were created over those five months for a cumulative shortfall of 1,259,000 jobs. The failure of the plan is nationwide, with job creation falling short in 48 of the 50 states.

Enjoying a long holiday break, Congress is not due back to Washington until January 20.

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Photo by Casey Kelbaugh