Rahall Backs Urgent Extension of Unemployment Benefits

Press Release

Rahall Backs Urgent Extension of Unemployment Benefits

In response to widespread job losses and rising unemployment rates, U.S. Representative Nick J. Rahall (D-WV) backed H.R. 5749, the Emergency Extended Unemployment Compensation Act, to provide an immediate extension of unemployment benefits to workers nationwide.

"With projections that unemployment will continue to increase through the end of this year, it is important that we take action now to continue to make unemployment benefits available to the 41,300 West Virginians who are currently looking for work," said Rahall. "That is why I am supporting this legislation, which would provide much-needed relief to West Virginia families and assist them with rapidly rising gas and food costs, while they continue to look for jobs in the slowing economy."

According to Workforce West Virginia, the seasonally adjusted unemployment rate for West Virginia increased to 5.0 percent in April of 2008, up from 4.4 percent in January of 2008 and 4.5 percent in April of 2007.

The Emergency Extended Unemployment Compensation Act will immediately provide up to 13 weeks of extended unemployment benefits to workers exhausting regular unemployment compensation in every state. The extension will run through January 2009 and will be financed by the federal unemployment trust funds.

The national unemployment rate recently surged to 5.5 percent from 5.0 percent -- the biggest one-month jump in more than two decades (since February 1986) -- and the highest level since 2004. As of May 2008, 8.5 million Americans were unemployed, with one in five jobless workers unemployed for more than 26 weeks.

"Every $1 of unemployment benefits generates $1.64 in new economic demand," said Rahall. "Because this money is spent quickly and locally, extending these benefits is one of the most cost-effective and fast-acting ways in which we can stimulate our economy."

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