LANSING – As unemployment hovers at 15 percent with 731,000 residents out of work, State Representative Gary McDowell (D-Rudyard) today called on the State Senate to act immediately to extend unemployment benefits to Michigan's struggling workers. With a massive surge in the number of workers exhausting their benefits expected to begin today, McDowell warned that by year's end nearly 100,000 Michigan workers will have their unemployment lifeline cut unless action is taken.
"Michigan has some of the most dedicated and talented workers in the world," McDowell said. "And while many of these men and women are down, they certainly are not out. In these tough economic times, our residents must be able to trust that we are working to turn our economy around and helping them get back on their feet."
Under a plan that McDowell voted for in May, unemployed workers who seek new skills by enrolling in a vocational or retraining program would be eligible for an additional 26 weeks of unemployment benefits. These benefits will be automatically provided to workers who are in a declining industry and enter an approved training program that prepares them for entry into new fields. These benefits also will be provided to workers who lost their job through no fault of their own and are now working part-time. For over three months the State Senate has failed to act on the plan, while more displaced workers fall behind.
Federal stimulus dollars would cover unemployment benefits for workers in retraining for at least the next two to three years. Without Senate passage of this plan, Michigan stands to lose out on more than $138 million in unemployment assistance to struggling workers and their families as part of the American Recovery and Reinvestment Act.
In July, 731,000 residents reported being unemployed, according to the Michigan Department of Energy, Labor and Economic Growth. Through December, the number of workers statewide who will exhaust their unemployment benefits claims is expected to reach nearly 100,000, including 1,155 in Cheboygan, Chippewa, Emmet and Mackinac counties.
"If the Senate lets this plan pass us by, Michigan stands to lose out on $138 million that will help retrain our workers and stimulate our local economy," McDowell said. "Worker retraining is vital to preparing our residents for the jobs of the 21st century in industries such as alternative energy, advanced manufacturing or life sciences. I urge the Senate to take swift action on this plan and put the best interests of our hard-working families first."
The House has launched an online petition to rally support for the plan to extend the unemployment lifeline to Michigan's struggling workers. Residents can sign the petition by visiting www.housedems.com/petitions and clicking on the unemployment petition graphic.
NOTE: The bills in the package are House Bills 4785 and 4786