Committee on Education and the Workforce

House Education & the Workforce Committee

John Boehner, Chairman
2181 Rayburn HOB · (202) 225-4527

FACT SHEET

Job Creation is the Ultimate Unemployment Benefit

 

UPDATED: October 7, 2004

 

  • Republicans and President Bush have focused on job creation and opportunity for America’s working families and, with the creation of nearly 1.7 million new jobs since August 2003, it’s clear those policies are working.

  • Republicans and President Bush have focused on creating jobs and opportunity – helping Americans return to work by providing tax relief, improving worker training and education, and curbing frivolous lawsuits that increase the cost of health care.  The unemployment rate of 5.4 percent in August was lower than the average rate during the 1970s, 1980s and 1990s.

  • Democrats have no plan to create jobs or grow the economy.  They’ve opposed legislation to make tax relief permanent, curb lawsuit abuse, and strengthen worker-training programs.  They’ve fought to preserve lawsuits and high taxes – policies that kill jobs, not create them.  

House Republicans Create Opportunity & Jobs While Democrats Practice Hypocrisy

 

  • Over the past two years, Republicans have extended federal unemployment benefits three times to help those struggling to find a job during the 2001 economic recession, which was made worse in the aftermath of the September 11 attacks.

  • In March 2002, Republicans came to the aid of jobless workers by creating a special extended unemployment benefits program.  An estimated $24 billion in federally-funded special benefits will be paid to eight million workers through this program.

  • In addition, the Republican Congress provided an additional $8 billion to states for the delivery of unemployment benefits.  As of February 4, 2004 , states were still sitting on $4 billion of the $8 billion in unemployment relief funds Congress and the President provided.  In the two years since this $8 billion was provided, less than half of the funds have been spent.  States are free to use these funds to extend benefits, and can do so without any additional congressional action.  

  • Democrats terminated a similar extended unemployment benefits program in 1994 – at a time when unemployment rates were higher than they are right now.  When the last temporary extension ended in 1994, the unemployment rate was 6.4 percent.  The unemployment rate today is 5.6 percent.  Not a single Democrat accused President Clinton in 1994 of turning his back on unemployed workers.  Why do they hold Republicans to a different standard? 

  • Republicans have also passed the Worker Reemployment Accounts Act (H.R. 444) to help unemployed workers with $3,000 to purchase a variety of employment-related services, such as job training, child care, transportation, career counseling, housing assistance, and case management, to help them find a new job and reenter the workforce.  The importance of worker training and retraining to help the unemployed find good jobs is undeniable, yet Senate Democrat leaders continue to block a major job training reform bill from reaching the President’s desk.  The House passed its measure, the Workforce Reinvestment & Adult Education Act (H.R. 1261), last year.  Unfortunately, Senate Democrats have refused to allow the Senate to appoint conferees on this important measure and are denying expanded job opportunities to Americans who need this assistance.

  • Democrats are determined to exploit the fears of workers despite the growth of the U.S. economy and growing prosperity of American workers.  Sen. John Kerry (D-MA) voted against President Bush’s tax relief packages on behalf of American working families in 2001 and 2003 even though the Bush tax cuts have clearly helped bolster the economy.  Kerry also has a plan to stifle economic growth and development by reinstating the so-called “Death Tax,” a move that would cost taxpayers $135 billion.

For more information on strengthening America’s job training system through reauthorization of the Workforce Investment Act, see http://edworkforce.house.gov/issues/108th/workforce/wia/wia.htm