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Remarks Prepared for Delivery by
U.S. Secretary of Labor Elaine L. Chao
Announcement of Personal Reemployment Account
Demonstration Projects
Friday, September 24, 2004
Thank you so much, Chancellor [James H.] McCormick. It's great to
be here today with you! I also want to thank Governor [Tim] Pawlenty,
Commissioner [Matt] Kramer, Dr. [Cheryl] Frank, and Ann Weyendt
for being here with me to announce an important new job training initiative for
America's workers.
Last year, President George W. Bush called on Congress to establish
Personal Reemployment Accounts. These accounts will give long-term unemployed
workers access to up to $3,000 to create their own, customized back to work
program.
So today, I'm delighted to announce that the Labor Department is making
the initial down payment on this important initiative. The Department is
offering states the opportunity to participate in the first-ever personal
reemployment account demonstration projects. This $9 million initiative be the
model for a larger proposal that is part of the President's 2005 budget
initiative.
I want to stress that the key feature of these accounts is that workers
will control and manage these Personal Re-Employment Accounts themselves. They
will be able to use this money for virtually anything they need to find a job.
They can purchase job training-such as taking specialized courses at community
and technical colleges like this ones represented here today, which they can't
do currently. They have to register for a program that's offered only by a
local Workforce Investment Board.
Or they can use it to pay for child care or transportation expenses
while they take training courses. That's especially important for single moms.
Or they can use it to buy tools, uniforms, auto repairs or even to pay for
relocation expenses, if they need to move to pursue better job opportunities.
Workers who find a new job within 13 weeks will receive a reemployment
bonus-- 60% immediately and the remaining 40% after 6 months on the job.
This is a tremendous step forward in helping unemployed workers find
jobs.
The economy is growing stronger every day-as you know in Minnesota,
which has an unemployment rate of 4.8%, which is much lower than the national
average of 5.4%. But there is still more work to do. And this Administration
will not be satisfied until everyone who wants a job can find a job. That's why
the President has pioneered this innovative approach for those having the most
difficulty finding work. Initially, the Department will offer 9 states the
opportunity to pioneer personal reemployment accounts.
I want to stress that Personal Reemployment Accounts will not replace
traditional Unemployment Insurance benefits. They are in addition to these
benefits. Personal Reemployment Accounts are specifically designed for workers
projected to have the most difficulty finding new jobs.
Personal Reemployment Accounts will empower unemployed and dislocated
workers with more control over selecting their own training and career paths.
It's part of the President's commitment to building an ownership society.
That's simply another way of saying that we trust the individual workers to
know what training courses to choose and to decide which job options they
prefer.
So thank you for being here today.
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