In the near future I will introduce legislation that will enhance unemployment compensation for Pennsylvania workers.
As of December 2023, Pennsylvania boasts an encouraging unemployment rate of 3.5% which, while seemingly positive, masks the complexities of our labor market, particularly the challenges faced by workers who are not fully employed or who endure significant employment instability.
Despite low unemployment rates, not all Pennsylvania workers enjoy the stability and security of continuous, full-time employment. This disparity is particularly pronounced among many classes of people including: - Union Construction Workers who are subject to the ebbs and flows of project-based work, leading to periods of unemployment between contracts.
- Part-time Workers who are often ineligible for full unemployment benefits due to insufficient work hours or earnings.
- Gig Economy Workers who lack traditional employment protections and benefits, including formal access to unemployment insurance.
- Seasonal Employees who are employed in industries with predictable off-seasons, leading to regular unemployment periods.
- Workers in Economically Fluctuating Industries such as manufacturing, where economic downturns can result in layoffs.
- Lower-wage Earners who are disproportionately affected by job losses and may struggle with the financial impact of unemployment.
The current Unemployment Compensation (UC) system does not fully address the needs of these workers, leaving them vulnerable during periods of unemployment. To better support our workforce and ensure economic stability for all Pennsylvanians, I propose legislation to enhance UC benefits. This legislation aims to:
- Increase Benefit Levels: UC benefits in Pennsylvania are designed to approximate about one-half of the claimant's full-time weekly wage. We propose making UC benefits more closely aligned with actual income levels, particularly for low-paid workers, ensuring that benefits provide a genuine safety net that reflects the cost of living and wage realities in Pennsylvania.
- Increase the Maximum Weakly Benefit Amount: The maximum weekly benefit rate in Pennsylvania for 2023 was $605, which extrapolated out by 52 weeks represents an annual salary of only $31,460. This maximum benefit must be increased to better align with actual income levels of working families in the Commonwealth.
- Establish a Minimum Weekly Benefit Rate: Set a minimum weekly UC benefit rate based on the cost of living in Pennsylvania, rather than on wages received in the base year, to ensure all eligible individuals receive meaningful support.
- Increase the Taxable Wage Base: Raise the taxable wage base on which Pennsylvania employers and employees pay Unemployment Insurance taxes, generating additional funds to support these enhanced benefits.
- Statutorily Recognize Gig Workers: Encode in statute the Pennsylvania Supreme Court ruling that established eligibility criteria for gig workers, such as Uber and Lyft drivers, including those in food delivery, to qualify for UC benefits. This would formalize protections for a rapidly growing segment of the workforce.
By enhancing UC benefits, we can provide a more robust safety net for all workers, especially those who face employment instability. This approach not only supports individuals and families during challenging times but also contributes to a stronger, more resilient economy.
I urge my colleagues to consider the broader implications of our current low unemployment rate and join me in supporting this critical legislation. Together, we can ensure that all Pennsylvanians have the support they need to thrive in today's evolving job market. |
