How Can The Government Help With Unemployment

Cyclical Unemployment Or Demand Deficient:

The demand deficient or cyclical unemployment takes place when the economy falls below its full capacity. A simple example can be the aggregate demand which falls below at times of recession which leads to weakening in negative economic growth and output.

When there is a drop in the output then the employment of workers will also be less which leads to the development of fewer goods.

There are many firms which move out of the business and result in redundancies in large-scale. There are more workers being laid off during recessions which lead to unemployment.

How To Help The Unemployed During The Coronavirus Pandemic

In the past four weeks, 22 million Americans have filed jobless claims. That staggering number doesnt even reflect everyone who is truly out of work just those who have been able to get online and file for unemployment benefits.

But not all hope is lost. There are ways to help, even if youve been laid off yourself. Here are a few steps you can take to ease the burden.

I Am About To Exhaust My Regular Unemployment Compensation Benefits What Kinds Of Relief Does The Cares Act Provide For Me

Under the CARES Act states are permitted to extend unemployment benefits by up to 13 weeks under the new Pandemic Emergency Unemployment Compensation program. PEUC benefits are available for weeks of unemployment beginning after your state implements the new program and ending with weeks of unemployment ending on or before December 31, 2020. The program covers most individuals who have exhausted all rights to regular unemployment compensation under state or federal law and who are able to work, available for work, and actively seeking work as defined by state law. Importantly, the CARES Act gives states flexibility in determining whether you are actively seeking work if you are unable to search for work because of COVID-19, including because of illness, quarantine, or movement restrictions.

In addition, if you have exhausted the 13 weeks of additional benefits available under the PEUC program, you may be eligible to continue receiving benefits under the PUA program. PUA benefits are available for a period of unemployment of up to 39 weeks, meaning that if you have exhausted regular UC and PEUC benefits in fewer than 39 weeks, you may be eligible to receive assistance under PUA for the remaining weeks within PUAs 39 week period.

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Oecd Policy Responses To Support Young People Through The Covid19 Crisis2

In the aftermath of the 2008 global financial crisis, many governments addressed young peoples difficulties too late and insufficiently, often resulting in long-lasting scars on young peoples careers and overall well-being . It took a whole decade for the OECD youth unemployment rate to return to its pre2008 level, and many other outcomes have remained fragile. This time, to avoid similar long-term impacts on young peoples prospects, all governments across the OECD have put in place targeted policies to support them through the crisis and recovery. Responses have differed significantly from country-to-country both in scale and areas of focus, but nonetheless span across many policy areas, ranging from support to find and keep jobs to income support and prevention of social exclusion as well as mental health initiatives. presents an overview of the measures taken.

What Can The Claimant Do If He Or She Believes A Job Offer Is Not For Suitable Employment

If a state raises an issue of failure to accept suitable employment, the state unemployment insurance agency must provide the claimant with an opportunity to provide his or her side of the story and to rebut any evidence provided to the state before making a final determination.

Most state laws allow for refusal of suitable employment for good cause, which is defined in state law. Criteria for good cause may include, but are not limited to, the degree of risk to an individuals health, safety, and morals the individuals physical fitness, prior training, experience, and earnings the length of unemployment and prospects for securing local work in a customary occupation and the distance of the available work from the individuals residence.

Claimants may file an appeal if they disagree with a states determination regarding suitable work. Please contact your state unemployment insurance agency for additional information.

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My Regular Unemployment Compensation Benefits Do Not Provide Adequate Support Given The Unprecedented Economic Challenges Caused By The Covid

Yes, depending on how your state chooses to implement the CARES Act. The new law creates the Federal Pandemic Unemployment Compensation program , which provides an additional $600 per week to individuals who are collecting regular UC and Unemployment Compensation for Ex-Servicemembers , PEUC, PUA, Extended Benefits , Short Time Compensation , Trade Readjustment Allowances , Disaster Unemployment Assistance , and payments under the Self Employment Assistance program). This benefit is available for weeks of unemployment beginning after the date on which your state entered into an agreement with the U.S. Department of Labor and ending with weeks of unemployment ending on or before July 31, 2020.

Struggling With Administrative Challenges

Despite the strenuous efforts of many officials to simultaneously address a massive surge in UI claims while quickly starting up new programs, the state-administered UI system was ill prepared to cope with the enormous wave of unemployment of early 2020. Inadequate staffing, outdated technology, and confusion about new eligibility criteria all likely hindered the systems response. The results were significant delays in processing benefits and higher vulnerability to fraud.

By June 2020 the government was paying only about half of approved UI claims on a timely basis, defined as within 21 days of application, DOL data show. By July of that year, over 100,000 people had waited at least 70 days for their first payment. Many jobless workers also were having enormous difficulty learning about the status of their UI claim. For example, fewer than 1 percent of calls to Wisconsins Department of Workforce Development were answered between March and June 2020, one report indicated.

The great difficulty of states to both provide timely payments and guard against fraud during the pandemic highlights the need for more modernization and investment in UI systems. In efforts to reduce fraud, policymakers must not erect new barriers to benefits for eligible workers. Increased customer service will likely be needed to help the most vulnerable individuals comply with any new requirements, particularly those related to identity verification.

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Who Is Eligible For Unemployment Insurance

To qualify for unemployment insurance benefits, a person must:

States vary considerably in how they apply these general criteria. For example, some states do not cover part-time workers unless they are willing to take a full-time job, while other states allow these workers to qualify even if they are seeking another part-time job. Also, states have some choice about the base period of employment used to determine eligibility.

Since the late 1950s, fewer than half of unemployed workers have actually received unemployment insurance, except during recessions. To be sure, unemployment insurance is not designed to cover all unemployed workers it does not cover people who leave a job voluntarily, people looking for their first job, and re-entrants who previously left the labor force voluntarily. But the growing percentage of unemployed workers who meet the basic criteria described above yet fail to satisfy their states eligibility criteria established decades ago has made it harder for UI to fulfill its mission.

Unemployment Insurance As Economic Stimulus

Unemployment benefits are designed first to relieve distress for jobless workers and their families. In recessions and the early stages of recoveries, however, they provide an additional benefit: stimulating economic activity and job creation. In fact, a major reason Congress created the basic UI program during the Great Depression was to help boost the economy and jobs.

The problem for most businesses in an economic slump is not lack of capacity to meet existing demand but lack of demand to fully utilize their existing capacity. To stop the destruction of jobs and begin to put people back to work, it is critical to stimulate demand. One of the best ways to do this is to target financial relief toward unemployed workers who need a replacement for lost income. People whose income is disrupted in a recession and who lack the savings to tide them over are the ones most likely to spend quickly any added income they receive. Thus, policies that put customers in stores with money to spend will likely do more to close the output gap and create jobs than, for example, business tax breaks.

A Labor Department report commissioned during the George W. Bush Administration and released in 2010 reinforced CBOs conclusion. It found that in the depths of the Great Recession, federal emergency UI benefits boosted employment by about 750,000 jobs.

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Ensuring Safe Accessible And Affordable Housing For Young People

The COVID19 crisis has brought to light many of the housing challenges facing OECD countries, including for young people. Even before the COVID19 crisis, many young adults across OECD countries struggled to afford a home of their own, and in the context of rising rents and house prices, most young adults, on average, were living with their parents . Young people themselves also report housing to be a major concern. In the OECD Risks that Matter 2020 survey, just over half of 1829 yearold respondents were somewhat concerned or very concerned with not being able to find or maintain adequate housing over the next year or two, higher than the rate among all respondents . A few OECD countries have been putting into place policies to support people in getting a foothold in the housing ladder, with these efforts mainly benefitting young people. In Iceland, an Equity Loan was introduced in 2020 for first-time buyers from low-income backgrounds, to help people buy housing for the first time by bridging the equity gap.

How To Get A Response Regarding Your Unemployment Benefits

From time to time claims get stalled and/or payments are delayed. Efforts to reach claims representatives by phone are often unsuccessful, or fail to achieve the desired result. Even visits to your local career center can fail to bear fruit.

In that event, if you have been waiting more than three-four weeks for a response/approval and or benefits, we strongly recommend you send an email to your elected state representative, describing your issue. In almost all cases, the elected representative will contact you almost immediately, then contact the state DOL, which in turn will contact you. Generally, payments are released within 48 hours after DOL contact.

Remember, your elected officials work for YOU. The unemployment insurance benefit program exists to provide financial assistance until you can find work.

There are plenty of success stories here on the website with this approach.

BE PROACTIVE Contact your state legislator. You will get a response.

Find your elected state representative at the links below. We will update and add to this list from time to time. If your state is not listed, do a Google search for elected state representative. Generally, your states website will turn up. Most state websites also provide a representative finder.

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List Of Common Causesof Unemployment

Causes of unemployment vary from one country to another butthe major ones include

• Rise in Population: The demand for jobs increases with the rise in population.
• Climate Change: Change in climate has made it difficult for people to rely in farming as a source of employment.
• Globalization or Technology: With the world becoming interconnected multinational companies are killing small local companies which used to be a source of employment. For instance, with people getting used to shopping online most malls are closing down.

Dont Assume You Know What They Need

Everyones situation is a little different, and your perception of a persons needs may not actually be what they are. Amanda Clayman, a psychotherapist and financial wellness advocate at Prudential, says that losing work isnt a problem that can be solved overnight. Sometimes may be very wrong, and its more likely that they will take the shape of our own fears of what they want from us, she says.

Clayman says a healthy way to ask what your loved one needs is to listen to your conversations and see what they bring up, whether it is emotional or financial support. Not all help is financial, of course especially if you are also struggling. If your friend is in a bad place and you want to help, you can say, I want to help, but Im worried about the position Im in, too, Clayman advises.

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Lost Wage Assistance Program

What was the Lost Wages Assistance Program ?

On August 8, 2020, the President issued an executive memorandum authorizing the Federal Emergency Management Agency to expend up to $44 billion from its Disaster Relief Fund to provide supplemental benefits to Americans receiving unemployment benefits, creating the Lost Wages Assistance Program . The program provided eligible claimants with an additional $300 in benefits for each of the qualifying weeks. LWAP was only available for the weeks ending August 1, 2020 through September 5, 2020.

Who was eligible for the additional Lost Wages Assistance ?

The program was limited in scope and, due to federal restrictions, was available only to those persons who provided self-certification that they are unemployed, partially unemployed, or unable or unavailable to work due to disruptions caused by COVID-19 and who received at least $100 from a qualifying underlying unemployment benefit program.

An individual was determined to have received at least $100 per week for purposes of being an eligible claimant if the individuals weekly benefit amount as provided on the monetary determination is at least $100 . In addition, the week in question must have been considered compensable.

When did the additional Lost Wages Assistance start, and how long did it last?

Are the LWA benefits taxable?

Yes. These benefits are subject to state and federal taxes.

Hiring Subsidies To Stimulate Job Creation For Young People

Amidst the ongoing uncertain recovery, when carefully targeted, hiring subsidies can be a cost-effective way of helping young unemployed people into jobs. Evidence from the global financial crisis shows that temporary hiring subsidies targeted at small firms and low-wage workers successfully promoted job creation and proved cost-effective . To minimise deadweight losses, hiring subsidies should only be used in the case of temporary weak demand or targeted at more disadvantaged groups . Combining hiring subsidies with on-thejob training is crucial to guarantee long-term benefits for the workers supported.

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Government Focused On Tackling Unemployment

Government remains committed to accelerating its interventions aimed at unlocking investment opportunities, growing the economy and creating much-needed jobs.

As a country we have placed economic growth and job creation at the centre of our national agenda. Local and foreign investments play an important role in growing our economy and creating sustainable jobs.

Investments significantly contribute to our national goals of socio-economic development in breaking the back of poverty, unemployment and inequality, GCIS Acting Director-General Phumla Williams said on Tuesday.

Williamss remarks come after the release of the Quarterly Labour Force Survey for the first quarter of 2019 by Statistics South Africa.

The report revealed that South Africas unemployment rate increased by 0.5 of a percentage point to 27.6% compared to the fourth quarter of 2018.

The increase in the unemployment rate is a result of a decline of 237 000 in the number of people in employment and an increase of 62 000 in the number of people who were unemployed between the fourth quarter of 2018 and the first quarter of 2019.

Countering unemployment

Williams said the high rate of unemployment is a serious concern to government.

As such, decisive steps are also being taken, including rebuilding investor confidence, ending corruption and State capture, restoring good governance and strengthening critical public institutions.

Pros Of Government Spending

This approach to increasing government spending has become wildly popular in the past couple of centuries because it has certain merits. Lets first discuss the merits of this approach:

• Prevention of Recession: The r word is probably the most feared word in economics. People like a smooth life and would like to avoid recession at any cost. Government spending provides a way to accomplish this. As mentioned above, government spending prevents negative sentiments from rising and creating a downward spiral. Hence, this approach prevents job loss in the short and medium run making it a popular fix it now measure.
• Immediate Revival of the Economy: Not only does government spending prevent recession, it can also reverse the effects of recession. An economy in turmoil can get an immediate lease of life with these government measures.
• Sustained Revival: The measures used by government act instantly. However, their effect does not wear out instantly. Once the positive sentiment has been restored, the government can cut the excess spending gradually. Private spending replaces public spending as market sentiment rises and confident consumers rush in to buy more goods and services. In the medium to short run, the economy sustains itself.

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