LANSING – In a move that will help Michigan workers struggling with the economic downturn, House Democrats have proposed a plan that will extend unemployment benefits for workers who take advantage of retraining or vocational programs to pursue good-paying jobs available now in high-demand fields. Michigan's unemployment rate hit 12 percent in February, the highest in the nation.
"Michigan's economy has taken a beating over the past few years, and our workers need help now," said State Representative Richard E. Hammel (D-Mt. Morris Township), who sponsored the plan and has worked diligently on worker retraining programs as Chair of the House Appropriations Subcommittee on Economic Development. "This plan will help displaced workers upgrade their skills and move quickly into jobs in growing fields. This is an investment in Michigan that will help us jumpstart our state's economy by providing businesses with the high-quality workers they need to thrive."
Under the House Democrats' plan, workers who are enrolled in a vocational or skill retraining program such as No Worker Left Behind will be eligible for 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 workers for entry into a high-demand occupation. This plan will allow workers to complete training and provide the time they need to move back into the workforce.
"Michigan workers created the middle class in this country, and we need to stand with them when times are tough," said State Representative Bert Johnson (D-Detroit), a sponsor of the plan. "All too often, workers who lose their job because of downsizing or outsourcing can't find a steady, good-paying job that meets their skills. We need to back our workers and help them compete for the good-paying jobs of the 21st century economy."
The House Democrats' modernization plan will bring the Unemployment Insurance Agency up to federal guidelines in order to receive federal stimulus dollars. The plan does this by updating statutes relating to underemployed workers, and making it clear that benefits will not be denied to workers who are either only available for, or are only seeking, part-time work. The Bureau of Labor Statistics estimates Michigan's 2008 average underemployment rate at 15.1 percent, nearly 2 percent higher than the next highest state, California. Without this plan, Michigan stands to lose out on more than $138 million in unemployment assistance money as part of the American Recovery and Reinvestment Act (ARRA).