HOUSE BILL REPORT

SSB 5393

As Amended by the House

BYSenate Committee on Commerce & Labor (originally sponsored by  Senators Tanner, Warnke, Lee, Smitherman, Williams, Talmadge, Wojahn, Rasmussen and Moore; by request of Joint Select Committee on Unemployment Insurance and Compensation)

Making older unemployed workers and the long-term unemployed the highest priority for services available from the job service program of the employment security department.

House Committe on Commerce & Labor

Majority Report:  Do pass with amendments.  (9)

      Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisch, Fisher, Patrick, Sanders, Sayan, C. Smith and Walker.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE APRIL 17, 1987

BACKGROUND:

In December 1986, the Joint Select Committee on Unemployment Insurance and Compensation reported that older workers, ages fifty and over, and the long-term unemployed experience great difficulty in finding new jobs at wages comparable to their pre-layoff earnings. The committee research indicated that two years after a layoff, older workers earn less than 65 percent of their pre-layoff earnings compared to 91 percent for workers ages 25 to 49.  The long-term unemployed earn less than 70 percent of their pre-layoff earnings two years later compared to 93 percent for workers who drew benefits for six to fifteen weeks.

Older workers and the long-term unemployed are also unable to find subsequent unemployment insurance-covered employment relative to other demographic groups.  Over 12 percent of older workers and 14 percent of the long-term unemployed had no subsequent unemployment insurance-covered employment after a layoff.

The committee's report also included analysis and research reports on seasonal, cyclical and structurally mature industries.  This information indicated that, in recent years, many state industries and local labor markets have experienced significant declines in total employment.  The permanent, non-aerospace manufacturing job losses from plant closures and permanent mass layoffs are estimated at more than 50,000 between 1979 and 1986.  Many industries were shown to have high levels of seasonal, cyclical and structural unemployment.  The number of unemployment compensation exhaustees rose 123 percent between 1979 and 1985.

The committee noted that the state does not produce a comprehensive annual report that assesses the magnitude and causes of the problems confronting the state's industries and workforce. The committee recommended that economic and labor market analysis be improved, with data collection on agriculture, forestry and fishing industries, systematic monitoring of industry, occupational and labor market employment trends, and maintenance of the data systems at no less than the current level.

SUMMARY:

The highest priority for services provided under the Employment Security Department's claimant placement project must be given to older unemployed workers, ages 50 and over, and the long-term unemployed who have drawn at least 15 weeks of unemployment compensation benefits or who have exhausted their benefits.

The department is directed to publish an annual report analyzing:  (1) the demographic groups of claimants with the greatest difficulty in finding new employment with earnings comparable to their previous job;  (2) the demographic groups of claimants with the highest rate of failure to find subsequent unemployment insurance-covered work;  (3) the demographic, industry and employment characteristics of claimants most likely to exhaust unemployment compensation benefits;  (4) the demographic, industry and employment characteristics of locked out workers who are eligible for unemployment insurance benefits;  and (5) the demographic groups fitting the definition of the "long-term unemployed."

The department is directed to continue the funding of the combined wage and benefit history data base at a level necessary to produce the annual report on the unemployed.

The department must also submit an annual report to the legislature and the governor, if funds for the report are appropriated, that includes: (1) identification and analysis of industries and local labor markets with high levels of seasonal, cyclical and structural unemployment; (2) industries and local labor markets with plant closures and analysis of causes of plant closures; (3) the number of dislocated workers and exhaustees by industry and labor market; (4) the reemployment experiences of the unemployed;  (5)  occupational employment projections; and (6) wage rates by industry and occupation.

Fiscal Note:      Requested March 30, 1987.

House Committee ‑ Testified For:    Senator Tanner, prime sponsor; Jeff Johnson, Washington State Labor Council; Bob Dilger, Washington State Building and Construction Trades Council; Graeme Sackrison, Employment Security Department (with concerns); Katherine Briar, Chair, Joint Select Committee on Unemployment Compensation and Insurance.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    More resources should be devoted to those unemployed workers who find it most difficult to become reemployed.  The Employment Security Department should also continue making the labor market reports that enable the legislature to make informed economic and employment policy decisions.

House Committee - Testimony Against:      None Presented.