Norton Introduces Bill to Help Get Unemployed Youth Back to Work by Expanding AmeriCorps

Statement

Congresswoman Eleanor Holmes Norton (D-DC) continued her efforts to combat the lasting effects of the Great Recession by introducing a bill to help reduce the staggeringly high number of unemployed young Americans, which stands at 2.2 million, representing an unemployment rate of 10.5%, more than double the overall national rate. The bill would expand AmeriCorps to allow unemployed young people who have completed college or high school to earn a stipend sufficient to support themselves and to gain valuable work experience. The Norton bill does not require any new or additional administrative structure or bureaucracy. At the same time, the bill would allow states and localities access to personnel for badly needed services, such as after school and elderly programs, and would boost the economy.

"Expanding AmeriCorps has a triple benefit-- employing young people who have been left out of the recovery since the Great Recession, boosting our economy, and improving our communities through AmeriCorps' mission of helping others through community service work," Norton said. "Young Americans who have worked hard to get their high school education and college degrees deserve better than competing for unpaid internships. They deserve the opportunity to earn a living to support themselves while serving their communities."

Last month, Norton introduced an incentive-based bill to encourage businesses to hire the long-term unemployed by giving 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.

Norton's full introductory statement is below.

Statement of Congresswoman Eleanor Holmes Norton on the Introduction of the Promoting National Service and Reducing Unemployment Act

I rise today to introduce the Promoting National Service and Reducing Unemployment Act, to address one of the greatest workforce tragedies resulting from today's economy--our unemployed young people--and to spur economic growth and alleviate strain on state and local governments. This tragedy is not only hurting our young people, it is costing our government $25 billion each year through lost tax revenue and other costs. Unemployment has reached a new low of 4.9 percent, but my bill targets the 2.2 million young people who have not had a fair chance to ever use their high school and college education, which this nation has strongly urged them to get.

What is particularly disappointing is the high unemployment rate for young people who heeded our advice to graduate from high school and college, only to try to enter the workforce in the worst economy in generations. The total unemployment rate is currently 10.6 percent for young adults aged 16 to 24, and hundreds of thousands now compete for unpaid internships wherever they can find them. By significantly expanding AmeriCorps, my bill would need no new administrative structure or bureaucracy, and would allow unemployed young people to earn a stipend, obtain work experience, and develop a good work history to help them secure future employment. The net cost of the expansion would be low, because these young people would be providing urgently needed local services that are being dropped or curtailed because of federal, state, and local budget cuts, such as after-school programs, tutoring, and assistance for the elderly.

The bill would significantly expand job opportunities for young people who have played by the rules but despite their best efforts remain unemployed in this economy. Participants receive a living allowance and are also eligible for an education award equal to the value of a Pell grant, for school-loan forbearance, health care benefits and child care assistance. By expanding the AmeriCorps program, we would reduce the number of unemployed young people, provide them with work skills and experience, and help cash-strapped states and local governments provide services that they would otherwise have to cut.

For some time, it has been clear that policies to address the most stubborn forms of unemployment need to be targeted in order to be effective. Without significant targeting, young graduates will continue to face their first years as adults without jobs and with no way to acquire work experience. They deserve better. I ask my colleagues to support this urgently needed targeted assistance for young, unemployed Americans.

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