FileUnemployment

Chopping Unemployment Benefits Trims Jobless Numbers

Updated : June 11th, 2019

US has seen a steady downfall in unemployment rates during the year 2014. As we prepare to press this article into publication, we hear some great news from the Bureau Of Labor Statistics, U.S Department of Labor. “Employment Situation”, the monthly news release added icing on the cake with revelation of unemployment rate for Feb 2015, which stood at 5.5 %, the lowest in years.

So what really triggered such a massive downfall? A combination of stimulants actually. Factors such as strong economic growth & even job creations across sectors and industries are the “key” contributors. However, a recent study sponsored by the National Bureau of Economic Research has thrown light on some startling facts by giving credit to “Cutting Unemployment Benefits”.

The study concluded that withdrawal of federal sponsored unemployment benefits extension in Dec 2013 resulted in 1.8 Million jobs being added in 2014.

Emergency Unemployment Compensation

The E.U.C as its popularly known, was a life saver program sponsored by the federal set up in 2008 during peak of recession when thousands of jobs were lost. It provided additional weeks of unemployment compensation to those jobless claimants who had exhausted the regular state provided benefits.

This program expired in Dec 2013, with no signs of renewal by the Congress which was of the opinion that the economy and jobless situation was stable and there was no need to burden the exchequer by reviving the E.U.C. It created an air of panic amongst the unemployed class, who were dependent on the monetary compensation to manage the basic expenses while they looked for jobs.

The Study

Led by Kurt Mitman, a group of fellows at National Bureau of Economic Research, carried out exhaustive study during this restless period starting early 2014 & released the papers in January this year.

The researchers used Local Area Unemployment Statistics dataset that reports county level data. They compared and analysed similar economic areas which had a variation in the unemployment compensation disbursed. Remember, during the study phase, there was a variation in the benefits offered in different states. The study points out that the average compensation weeks tumbled from 53 weeks to 25 weeks after the Emergency Unemployment Compensation program expired.

The study concluded that cutting the federal sponsored benefits had resulted increase in employment across the country. The monthly data from the BLS further strengthens this finding. More people applied for jobs since the cut that led to decrease in jobless workers across sectors.

Present Day Situation

The unemployment rates have surged in a phased manner, improving month on month, beating post recession blues. About 295,000 jobless were added in the month of February 2015 & the unemployment rate stood strong at 5.5%, a decrease of 0.1 percentage point from January 2015.

If you were laid off recently and scouting for jobs, apply for unemployment insurance that provides you weeks of monetary compensation to to help you manage day to day expenses.

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  1. I work for a church pre school program and I have lost my job due to coronavirus. When I applied for unemployment in Texas it says that two does not except this employer as my last employer. I’ve been working there for 13 years. What do I do?

  2. Chad ….. how do I get thru when it wont accept my ID or my password. I change it 5 times and it still wont work. Calling is not working at any time when I spend and whole day calling back to back to get thru. why don’t they just help or force the employers ( company) to place they claims in for their workers like GM did……I NEED HELP…PLEASE.

    1. Chad,

      We understand this might be a difficult time for you. We’re anticipating a shortage of staff across unemployment offices due to the massive surge in UI applications considering the pandemic. We advise against calling or visiting the office, as you may not get a response instantly.

      Your state may have activated “Extended Benefits (EB)” authorized by the federal government. We recommend you apply for UI benefits online. For more information, please visit your state’s official Unemployment website.

  3. i live in ga…all the day cares have shut down my wife and i have full time jobs,,,but i have to leave my company which i have been there for over two years,to take care of our child….can i still collect unemployment…this covid virus is why i have to leave my job…

    1. Gary,

      We understand this might be a difficult time for you. We’re anticipating a shortage of staff across unemployment offices due to the massive surge in UI applications considering the pandemic. We advise against calling or visiting the office, as you may not get a response instantly.

      Your state may have activated “Extended Benefits (EB)” authorized by the federal government. We recommend you apply for UI benefits online. For more information, please visit your state’s official Unemployment website.

  4. are you kidding me my son lost his job on 10/17/2020 hes mentally challenged and cant file on his own because he doesn’t know how so I started going to sites trying to file for him and the residence inn Marriott promised to help him and have done zip . ive tried 10 different sites and I keep getting dropped wen I complete forms and push submit. 12 days now n still cant file a claim.

    1. Martin,

      There’s only one website you should be trying from. Please let us know your state and we’ll share the website information.

  5. I have submitted my forms EXACTLY as I was instructed too on line. Even though I have filled out the paperwork correctly I keep getting emails asking for me to fill out the form that I have done multiple times already. Remuneration – Claimant Questionnaire is the issue. I got online and requested a phone call. 3 days ago. I just need to know that you guys received everything and I don’t owe any more information.
    Nobody answers the 617-626-6800 number. Just get directed to the internet. Well, you can’t speak with the internet. I am getting mixed messages and I fret that this will delay any benefits.
    Could someone please give me a call.

    1. James,

      Please try finding answers online since there might be limited phone support due to the shortage of staffing. This is a private forum and we’ll not be able to arrange a callback.

  6. I work for a church that has grown it’s congregation over almost 40 years and we now have 26 mostly full time employees, most being here many years. Will our employees be able to file and receive benefits since we are an EXEMPT from paying unemployment industry? State of Florida

  7. My unemployment benefits ran out 3/1/2020 am I able to file for extended benefits ? I live in California and am 62 years old.

    1. Ariana,

      We understand this might be a difficult time for you. We’re anticipating a shortage of staff across unemployment offices due to the massive surge in UI applications considering the pandemic. We advise against calling or visiting the office, as you may not get a response instantly.

      Your state may have activated “Extended Benefits (EB)” authorized by the federal government. We recommend you apply for UI benefits online. For more information, please visit your state’s official Unemployment website.

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