house resolution no.134
Rep. Brenda Carter offered the following resolution:
Whereas, The COVID-19 Pandemic has had a dramatic impact on the lives and finances of Michigan residents. The Pandemic has contributed to historic levels of unemployment; and
Whereas, Throughout the crisis, the federal government has enacted policies to provide additional support to those receiving unemployment benefits. The American Rescue Plan will provide an additional $300 in weekly benefits from the federal government to supplement state, Pandemic Unemployment Assistance(PUA), or Pandemic Extended Unemployment Compensation(PEUC)benefits for unemployment recipients until September 4, 2021; and
Whereas, Michigan already has adequate policies to prevent claimants from abusing unemployment benefits. Claimants who are offered suitable work or are called back to their previous position cannot refuse this offer without good cause. In Michigan, claimants are staying on unemployment for an average of 15 weeks for traditional state programs and 24 weeks for federal programs, far below the maximum length of each benefit; and
Whereas, Prematurely ending supplemental unemployment benefits would particularly harm women and families. Many working mothers have had to leave the workforce to care for children during the Pandemic. Nearly 1.5 million more mothers of school-age children are not actively working compared to before the Pandemic. With some schools and childcare facilities still closed, ending supplemental benefits will deprive these women of the additional funds while they are still unable to reenter the workforce; and
Whereas, Opting out of additional unemployment benefits will disproportionately impact low-wage workers, especially minorities. People of color, who are more likely to be low-wage workers, were more likely to become unemployed during the Pandemic and studies have found that low-wage jobs have been slower to recover than higher-wage jobs. Throughout the crisis, the unemployment rate for minorities has continuously exceeded their share of the labor force; and
Whereas, The disproportionate impact of cutting benefits on women and people of color will only exacerbate the historic economic disadvantages these communities have faced. The wealth gap faced by these individuals means that they have fewer resources to survive the financial stress brought by reduced or eliminated unemployment benefits; and
Whereas, More generous unemployment benefits have been tied to better outcomes for workers and the economy as a whole. States with higher benefits allow workers to find work better suited to their qualifications, leading to increased wages and productivity; and
Whereas, Ending the federal supplemental unemployment benefits will damage Michigan's economic recovery. Taking money out of residents' pockets will lead to a fall in consumer spending, negatively impacting businesses and the state's economy, with the potential to create a recession. Michigan could lose up to $2.88 billion in spending over the next three months. During the Great Recession, every $1 of unemployment insurance generated $1.61 into local and state economies. The economic multiplier is currently estimated at $1.91; and
Whereas, Rather than targeting the most disadvantaged in our state, elected officials have the opportunity to enact policies that will ensure that these workers are able to thrive. Establishing universal paid sick leave, increasing the effectiveness of the unemployment insurance system, and increasing the minimum wage would improve the lives of workers and create a more just economy for all; now, therefore, be it
Resolved by the House of Representatives, That we oppose efforts to withdraw Michigan from the federal Pandemic Unemployment Compensation Program; and be it further
Resolved, That copies of this resolution be transmitted to the Governor and the Director of the Unemployment Insurance Agency.