Time Magazine thinks that extended unemployment benefits may increase joblessness

According to a recent story in Time Magazine, there is "a Limit to Compassion". The article figures that with extending the unemployment benefits for up to 99 weeks, congress and the president actually provides the jobless incentive to wait around for jobs---not taking low-paying jobs or a position that would require you to relocate.

Because there's evidence that the extensions are only prolonging joblessness. Today's unemployment rate remains high not because of mass layoffs — most of which happened early last year — but mainly because more people are remaining unemployed for longer periods. In academic parlance, the "exit rate" from the unemployment pool is only around 21%, compared with 34% during the last harsh recession, in 1982.

Weekly Jobless Claims Up Up Up

The weekly jobless claims for the week of August 15th rose to 574,000---That's up 15,000 from the prior week and higher than expected. This increased the 4 week moving average up 4,250 to 570,000 new jobless/week...

The report also showed that 6.24 million people are currently receiving unemployment insurance benefits.

Two other interesting tid-bits from the report include:

States reported 2,877,756 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending Aug. 1, an increase of 92,384 from the prior week. There were 1,406,779 claimants in the comparable week in 2008. EUC weekly claims include both first and second tier activity.

The highest insured unemployment rates in the week ending Aug. 1 were in Puerto Rico (7.3 percent), Oregon (6.2), Pennsylvania (6.1), Michigan (5.9), Nevada (5.9), Wisconsin (5.5), California (5.3), Connecticut (5.3), New Jersey (5.3), North Carolina (5.1), and South Carolina (5.1).

How Many Weeks of Unemployment Insurance Do I get?

cnn has published data that shows how many weeks of UI benefits unemployed workers are eligable to receive. Wyoming gets the least amount of weeks (26 weeks), and a multitude of states are eligable for Tier 2 or Tier 3 benefits that could bring benefit checks coming for up to 79 weeks.

As of June 2009, the states that qualify for 79 weeks of UI benefits include:

1. California
2. Nevada
3. Oregon
4. Michigan
5. Colorado
6. Minnesota
7. Wisconsin
8. Indiana
9. Ohio
10. Kentucky
11. Georgia
12. North Carolina
13. Alaska
14. Florida
15. New Jersey
    

Unemployed Floridians to get 79 weeks of UI Benefits

According to Jacksonville.com, Floridians may be elligible to recieve up to 79 weeks of Unemployment Insurance benefits. You can apply to receive these Tier 3 UI benefits today.

The unemployed people will be eligable for these benefits on a case-by-case basis thanks to legislation that was signed into law by Barack Obama and Governor Charlie Crist.

Prior to the summer of 2008, Floridians were only eligable for up to 26 weeks of UI benefits. Then Tier 2 benefits were automatically provided bringing coverage levels to 53 weeks of benefits.

Now, the new program is on a one-off basis and is subject to when the person became unemployed, how long he worked and what their salary was before losing their job.

The agency will send eligible recipients the proper paperwork in the mail and is also accepting applications via its Web site at http://www.floridajobs.org/.

Nevada to offer another 13 weeks of unemployment insurance benefits

According to msnbc the state of Nevada now offers 13 weeks of "State Extended Benefits" (SEB)---let's call it Tier 3 unemployment insurance.

This is for jobless Nevadans who have exhausted the state's regular unemployment benefits and the federal governments emergency extended benefits.

The program started 2/28 and Nevada will contact those people who are able to participate.

Jobless in Connecticut to Get $25/week more--from Obama's Stimulus

According to thehour.com Connecticut's Governor Rell announced that the state's unemployed who are collecting unemployment insurance payments will see a $25 increase for amounts filed this week.

According to the article, the Governor had this to say,

"I am also pleased that job-seekers in our state will continue to be eligible for additional help from the federal government if they aren't able to find work quickly," the governor said. "In November, Congress offered an additional 20 weeks of unemployment assistance to all states and 13 more weeks on top of that to states where the unemployment rate was at 6 percent or more -- a distinction that unfortunately includes Connecticut. Eligibility for those 33 weeks of extra aid was scheduled to expire at the end of March -- but under the stimulus bill, eligibility for the aid will continue through December 31."

~6.5 million people are collecting unemployment insurance benefits

According to the AP nearly 6.5 million Americans are collecting unemployment insurance benefits and in the latest week there was over 600,000 people filing first time unemployment claims.

Of the 6.5 million, 1.5 million Americans are receiving extended unemployment insurance benefits.

Montana now gets Tier 2 Unemployment Insurance Benefits

This story is from the AP:

Second tier of unemployment benefits available

By The Associated Press

HELENA - Some of Montana's unemployed qualify for a second tier of benefits, under a package taking effect this week.

Montana is one of 33 states where rising loss of work has triggered an additional level of emergency unemployment compensation. These federally funded benefits provide up to 13 weeks of payment to people who exhaust their regular and emergency unemployment compensation before April 5, and are ineligible to begin a new claim for benefits.

The Montana Department of Labor and Industry says people eligible for the money are being notified by mail.

Pennsylvania adds capacity to it's unemployment insurance office

According to the morning call Pennsylvania is adding 300 people to work at its unemployment insurance offices and call centers, and plans on hiring another 200 people in the near future as well.

To deal with the influx of claims, the state added about 300 temporary employees to a core staff of 600 employees at its eight regional call centers, including one in Allentown, said David Smith, a spokesman for the state Department of Labor & Industry.

The temporary workers earn a wage of $14.38 an hour. The state's eventual goal is to have around 1,100 temporary and full-time employees available to help the jobless navigate their way through the bureaucracy. Some of the new workers include retired state employees who had previously worked in the call centers.

Last month, the Rendell administration announced that it was keeping the call centers open from 9 a.m. to 4:30 p.m. on Sundays. The centers are open daily 7 a.m. to 8:30 p.m., Monday through Friday, and are closed on Saturday. "By expanding the hours and days for the call-in number, we are continuing to find ways to help our citizens get the financial support they need in these times of economic uncertainty," acting Labor & Industry Secretary Sandi Vito said in a written statement.

The fastest way to register for benefits, officials said, is online at the L&I Web page, http://www.dli.state.pa.us. Jobless state residents can also call 1-888-313-7284 to submit their applications for benefits. When they lose their jobs, Pennsylvanians can initially receive up to 26 weeks of state-funded unemployment benefits. After that, they are eligible for up to 33 weeks of federally funded emergency unemployment compensation, Smith said.

Alabama gets 13 more weeks of unemployment insurance benefits.

Alabama extends unemployment benefits

Birmingham Business Journal - by Crystal Jarvis Staff

Alabama’s unemployed workers will now be eligible for an additional 13 weeks of compensation benefits, according to the Alabama Department of Industrial Relations.

The surge in the unemployment rate here – due to massive layoffs at companies grappling with the ailing economy – allows the state to extend its unemployment payments to its affected work force, the department said.

To qualify, a state’s three-month average unemployment rate must be at least 6 percent. Alabama’s average is currently 6.1.

The state’s overall unemployment rate jumped to 6.7 percent, a dramatic increase from November’s revised 6 percent. The state’s jobless rate is still lower than the national rate of 7.2 percent, but has steadily increased in recent months from 5.6 percent in October and 3.6 percent a year ago.

So far, Alabama has qualified for two extensions. In all, 33 weeks of benefits have been added to the existing 26 weeks of benefits unemployed workers normally receive.

“Hopefully, this extension will help to alleviate some of the financial burden for those who remain unemployed,” said Alabama Department of Industrial Relations Director Tom Surtees. “During such faltering economic times, many workers may feel there is nowhere to turn. Alabama’s Career Centers stand ready to help those workers meet these challenges.”

As of late, about 12,000 Alabamians are likely eligible for the additional benefits. The extension will go into effect on Feb. 15.

For more information visit the agency’s Web site at www.dir.alabama.gov

Pennsylvania gets extended unemployment insurance benefits

According to the Pittsburgh Business Times

Additional federal unemployment funds available in Pennsylvania
Pittsburgh Business Times

Pennsylvania’s insured unemployment rate climbed past 4 percent this month, which will make 13 additional weeks of federally funded emergency unemployment compensation available to those who exhaust benefits, Gov. Ed Rendell announced.

The insured unemployment rate counts only the unemployed who file for benefits. The state’s most recent total unemployment rate reading was 6.7 percent for December.

The additional weeks of emergency compensation will help more than 50,000 people who have exhausted benefits or are about to, the state Department of Labor and Industry reported.

Unemployed workers who exhausted the state’s 26 weeks of benefits were previously eligible for up to 20 additional weeks of federally funded emergency unemployment compensation, but will now be eligible for up to 33 additional weeks of federal benefits. The change was triggered when Pennsylvania’s insured unemployment rate increased to 4.14 percent Jan. 16, passing the threshold required for states to be eligible for the additional 13 weeks of federal benefits, Department of Labor and Industry spokesman David Smith said.

“It’s a key lifeline because now you are talking about winter heating bills too,” Smith said of the potential loss of benefits to 50,000 unemployed state residents. “That’s why these additional 13 weeks are vital to people.

Congress approved 13 additional weeks of federally funded emergency benefits over the summer and another 7 weeks in November, which saved more than 54,000 in Pennsylvania from losing benefits, Smith said. Since July, Pennsylvania has distributed more than $639 million in federal emergency unemployment compensation.

Pennsylvania's nonfarm job count dropped by 27,100 jobs in December and its unemployment rate climbed to 6.7 percent.

Florida Tier 2 Unemployment Insurance

For those Floridians that need to know the details of the state's extended unemployment compensation plan you should check out this information

Essentially:

To be eligible for the additional EUC benefits, the claimant must:

• Have filed a claim on or after May 2, 2006
• Have exhausted all rights to regular UC under state or federal law.
• Have no rights to regular or extended UC in any other state.
• Not eligible for benefits in Canada.

and

Calculation of EUC Benefits for the Additional Extension

• Weekly Benefit Amount of the EUC claim will be the same amount received on the regular claim that the extension is based on.

• The total EUC Available Credits will be the lesser of:

• 80 % of the Available Credits on the regular UC claim up to a maximum of 20 weeks.OR
• 20 times the individuals weekly benefit amount

New York State could get Tier 2 Unemployment Insurance Benefits soon.

From the New York Times

State Jobless Rate Soars; Benefits Extension Seen

Article Tools Sponsored By
By PATRICK McGEEHAN
Published: January 22, 2009

Unemployment in New York State rose last month at the fastest pace on record, as some companies laid off workers at a rapid clip while others refrained from their usual hiring around the holidays, the State Labor Department reported on Thursday.

The state’s jobless rate, which is adjusted for seasonal fluctuations, was 7 percent in December, up from 6 percent in November, according to the report. That increase — the largest in any month in 32 years of state record-keeping — will set off another extension of benefits for many New Yorkers who have been looking for work for more than half a year, labor market experts said.

New York City’s unemployment rate, after seasonal adjustments, rose even more, jumping to 7.4 percent from 6.3 percent, the Labor Department said. The city’s count of private jobs declined by 8,500 in December, compared with a normal increase of almost 20,000 jobs in that month.

...

The national unemployment rate, which, at 6.8 percent in November, was considerably higher than the state and city rates, rose to 7.2 percent in December.

...

Across the state, more than 670,000 people were reported as unemployed in December, a record one-month increase of 89,800 from November. More than 500,000 New Yorkers are currently collecting unemployment benefits and about half of them have already exhausted the standard allotment of 26 weekly checks.

Those who failed to find work before their standard benefits ran out have been able to collect up to 20 weeks of additional benefits. Now that the state’s unemployment rate has averaged more than 6 percent for the last three months, an additional extension of 13 weeks of benefits will become available on Feb. 22, according to Andrew Stettner, deputy director of the National Employment Law Project, an advocacy group for the unemployed.

That extension will help thousands of New Yorkers who have already used up 40 weeks of benefits, but it will also put additional strain on the state’s insolvent unemployment insurance fund. The state has been borrowing about $90 million each week this year from a federal fund to cover the shortfall in the unemployment fund.

State officials project that the fund’s deficit will grow to more than $2.5 billion by the end of 2010 unless changes are made to the relatively low payroll tax system that feeds the fund. On Thursday, labor unions and advocates for low-wage workers called for legislation to overhaul the system and increase unemployment benefits. New York’s maximum weekly unemployment benefit of $405 is lower than those of all of its neighboring states.

How does Tier 2 Unemployment Insurance work?

Needless to say, there are different unemployment insurance plans in each and every state. Some states qualify for extended unemployment compensation (EUC) and others don't.

All States: Workers who used all of the 13 weeks of unemployment benefits before the passage of the November 2008 legistlation are eligable for an existing 7 weeks of extended benefits (20 weeks Total)--These 7 weeks are called "additional first tier benefits"

High Unemployment States---Those who are unemployed in states with more than a 6% unemployment rate ( for at least 3 months), are able to receive an additional 13 weeks of unemployment insurance benefits. (33 weeks total)---This is the Tier 2 (or Tier II) benefits

You can read more about Tier 1 and Tier 2 Unemployment Insurance benefits here.

Which States are eligable for Tier 2 Unemployment Benefits

According to this site as of 12/28/2008, there are 22 states that are eligible for extended unemployment insurance benefits and a handful of others that are about to have UIC benefits begin. The Tier 2 benefits come when there has been an unemployment rate of over 6% for 3 months.

Specifically, the states which currently have Tier 2 unemployment insurance benefits are:

• Alaska
• California
• Connecticut
• District of Columbia
• Florida
• Georgia
• Illinois
• Indiana
• Kentucky
• Michigan
• Minnesota
• Mississippi
• Missouri
• Nevada
• North Carolina
• Ohio
• Oregon
• Puerto Rico
• Rhode Island
• South Carolina
• Tennessee
• Washington

Additionally, Arizona, New Jersey and the US Virgin Islands will have Tier 2 benefits beginning in 2009

Michigan's Extedned Unemployment Insurance Benefits (Tier II / Tier 2)

If you're one of the many people unemployed in the state of Michigan, you may be eligible for extended unemployment insurance benefits.

The Emergency Unemployment Compensation (EUC) program includes up to 20 weeks of federally-funded extended unemployment benefits in all states, and because of Michigan's high unemployment rate, a second tier of EUC, providing up to an additional 13 weeks of benefits, are payable in the state. Thus, Michigan's unemployed workers may receive up to 33 weeks of federally-funded EUC assistance.

You can read more of my posts about Michigan here.

Or you can read more about Michigan's Tier 2 extended unemployment insurance benefit here.

Connecticut's Extended (Tier 2) Unemployment Insurance Benefits

By Governor Rell's Office

Gov. M. Jodi Rell announced today that unemployed Connecticut residents who have exhausted their 20 weeks of federally extended jobless benefits are now eligible for 13 more weeks of compensation.

The Governor said the 13-week extension applies to those jobseekers who have exhausted their initial 26 weeks of state unemployment insurance and the 20 weeks of federal benefits are now eligible for a “Second-Tier” of 13 weeks. Under federal guidelines, the 13 additional weeks are being made available to states experiencing unemployment rates of more than 6 percent over a certain amount of time.

“These additional 13 weeks of benefits represent a welcome relief to those citizens who are struggling to pay their bills and have not yet found new jobs,” Governor Rell said. “These additional weeks will give individuals who worked in Connecticut a total of 33 weeks of extended benefits.”

Governor Rell noted that approximately half of the states in the country have met the guidelines needed to receive federal funding for the additional 13 weeks. For those individuals who have not found new employment and are otherwise eligible, the “Second-Tier” benefits will be provided automatically after the initial 20 weeks of extended benefits have been exhausted.

Residents eligible for “Second-Tier” benefits will be notified by mail by the state Department of Labor after they exhaust their 20-week benefits extension. They can also access the information by Jan. 18 by reviewing their balance summaries that are available through DOL’s online WebBenefits system or the TeleBenefits phone service.

Labor Commissioner Patricia Mayfield said because of the national recession, the agency is currently processing approximately 5,000 new claims as well as 80,000 continued claims each week, a 50 percent increase over last year. She said in the final week of December, more than 100,000 unemployment checks were issued, totaling approximately $32 million.

Information posted on the Connecticut Department of Labor’s Web site, www.ct.gov/dol will provide updates and answers to Frequently Asked Questions. Those with general questions about the federal extension can also call toll-free at 1-877-522-6711.

California's Extended (Tier 2) Unemployment Insurance Benefits

This was a press release from California's Employment Development Department (EDD) and it lays out what needs to be done to get extended unemployment benefits, (aka Tier 2, Tier II benefits):

Federal legislation enacted in July 2008 provided up to 13 weeks of extended benefits for workers who exhausted their regular UI benefits in California and across the country. New legislation enacted in November 2008 adds up to 7 weeks to the earlier extension, for a total of up to 20 weeks of extended benefits. The new legislation states that these added benefits are only payable for weeks beginning on or after November 23, 2008. The new legislation also includes a second extension of up to 13 weeks for high unemployment states, which includes California. Eligible workers will receive a total of up to 33 weeks of extended benefits.

HOW TO FILE

To find out if you are eligible for the first or second extended unemployment claim you may apply online or call one of the telephone numbers listed below. The EDD anticipates high call volumes so you are encouraged to apply online.

• English: 1-800-300-5616
• Spanish: 1-800-326-8937
• Cantonese: 1-800-547-3506
• Mandarin: 1-866-303-0706
• Vietnamese: 1-800-547-2058
• TTY: (NON VOICE): 1-800-815-9387

You can read the rest of the release here...

You can read all of my California related posts here...

Ohio Unemployment Insurance Benefits--Tier 2

I've noticed that many people have been finding my site looking for information on the State of Ohio's Unemployment Tier 2 (or Tier II) unemployment insurance benefits---Essentially an extension beyond the normal payouts.

In November, 2008 they updated a Q&A deck with this information.

You can read my other Ohio posts here.

**********************************************
Here's some key points:
**********************************************
Who is eligible to receive this extension?
Currently unemployed individuals who satisfy all of the following criteria could qualify:

• had an unemployment application in effect as of May 5, 2007, or later;
• have exhausted all regular state UC benefits;
• have no rights to regular UC or extended benefits under any other state unemployment compensation law or federal law or in Canada.
  

What are individuals eligible for?
Individuals are eligible to receive up to 20 weeks of additional benefits. These benefits are known as Tier 1 benefits. The extended benefit amounts will be the same as claimants’ previous UC benefit amounts, unless there is some other change in circumstances (such as an adjustment in deductible income, like child support). Individuals will be expected to continue their work search efforts. An additional 13 weeks of extended benefits, known as Tier 2 benefits, could be payable when a claimant exhausts his/her Tier 1 entitlement.

I think I am eligible for extended benefits. What do I do?

• Individuals who exhaust regular unemployment benefits will receive instructions on how to file for these benefits. Those individuals who are currently drawing federal extended benefits or have exhausted their original 13 week entitlement will automatically receive a recomputation of their total benefits payable as a result of the new legislation.
  

• This recomputation will add up to 7 weeks of federal extended benefits to their balance and will be sent out as soon as possible. For those individuals who previously exhausted their original 13 week entitlement, the first payable week for the 7 additional Tier 1 benefits is November 29, 2008.
  

How long will it take to process my application and start benefit payments?
Once claimants are determined to be eligible for extended benefits, payments will be issued on a routine, weekly or biweekly basis, with their preferred payment method (debit card or electronic funds transfer). ODJFS expects to contact those eligible for extended benefits between now and the week of December 22. Benefit payments are expected to begin the week of December 22, 2008 to those who are eligible.

Florida's Unemployment Situation

There's some good news and bad news when it comes to the state of Florida's unemployment situation.

First the bad news---The unemployment continues to climb. Reaching 7.0% in the most recent reporting month (October 2008). Undoubtedly, much of the increase in unemployment has came about from the crashing real estate market in the sun-shine state.
Now the Good News: Since the unemployment rate is so high, for those folks affected the length of time which you can collect unemployment has been extended.