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What States Are Stopping Unemployment

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State Unemployment Insurance Benefits

Petition calls on states to stop requiring facial recognition for unemployment benefits

The state unemployment insurance benefit program will remain in place. Under state law, these benefits currently provide eligible claimants with up to 13 weeks of benefits in a one-year period, with a maximum benefit of $350 a week.

To be eligible for state unemployment insurance benefits:

  • You must be unemployed due to no fault of your own. The Division of Employment Security will make this determination based on information provided by you and your last employer.
  • You must have earned sufficient wages in employment that was subject to unemployment insurance tax.
  • You must be physically able and available to work.
  • You must be actively seeking work, and you must register for work with NCWorks.gov or your resident states job service office.

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Why Did Benefits End Early In So Many States

Citing labor shortages in the spring, 26 state governors claimed pandemic-related unemployment benefits were producing limited incentives for workers to take jobs. Many economists and analysts disagreed, highlighting several factors that prevented people from finding suitable work, including low wages, lack of health care, inadequate child care and fear of contracting COVID-19.

With unemployment claims still fluctuating as the economy struggles to return to pre-pandemic normalcy, reports are showing that the early cancellation of the federal programs had little impact on labor markets. A recent JP Morgan Chase Institute study confirmed that states that ended supplemental unemployment insurance programs during the summer saw a limited impact on job growth.

According to an August report by the Century Foundations Andrew Stettner, Politics, not economics, drove the attack on unemployment insurance. The states that cut off the enhanced benefits before the federal expiration were mostly Republican-led.

Arkansas, Indiana and Maryland were slated to cut off benefits early, but successful lawsuits forced those states to preserve the federal coverage, at least temporarily. In issuing their rulings, judges noted that the ending of benefits made it harder for the unemployed to afford basic needs. Lawsuits were also filed against state governors elsewhere, which were either denied by judges or are still held up in the courts.

Does Unemployed Get Stimulus Check

Yes, you can.

As long as the annual income youve declared in your most recent tax return either 2019 or 2020 is within the eligibility thresholds for the third stimulus check, you can expect to qualify for a direct payment regardless of whether or not you are receiving unemployment benefits at the same time.

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What States Are Ending Benefits

There are a total of twenty-six states that have chosen to end federal pandemic unemployment benefits but some are now doing an about-face and have resumed payments after being sued by residents.

Maryland, although it was scheduled to end benefits 3 July continued the payments after a court found that Governor Larry Hogan had overstepped his authority in ordering them to stop. The governor has now decided not to fight the court decision and allow those benefits to continue until they expire.

Indiana restarts pandemic unemployment benefits after judge’s order

CNN Politics

A similar situation occurred in Indiana where pandemic benefits were canceled 19 June. Workers in the state were the first to file a lawsuit against their governor Eric Holcomb for his executive action and win a restraining order. The judge in this case said that it appeared the governor had broken state law when he took Indiana out of the federal pandemic unemployment programs. The judge had ordered the payments to resume but out of work residents had to wait until 16 July after a state Court of Appeals upheld that decision last week requiring the state to restart paying federal unemployment compensation.

Louisiana will be the last state to end unemployment benefits early with the stop date scheduled for the end of July. The remaining states that are no longer participating in one or all of the federal programs include:

Consequences Of Ui Expirations

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As of December 3, 2020, Department of Labor data show that 20.7 million people are currently participating in or have recently filed an initial claim for one of four unemployment compensation programs:

  • 9 million are participating in PUA as of the week ending November 14 and 600,000 have filed initial claims for PUA in the last two weeks of November. PUA is a new and temporary program that provides unemployment assistance to workers not eligible for UI .
  • 2 million people are on regular UI and about 700,000 filed initial UI claims the week ending November 28.
  • 6 million people are on PEUC, a new and temporary program which extends the number of weeks that a person on UI can receive benefits and
  • 700,000 people are on EB, the UI extension program-in-law that allows for additional weeks of benefits when economic conditions in a state are met and when UI and PEUC are exhausted.

The unemployment compensation program that an unemployed person is participating in and the state in which an unemployed person lives determines whether she will lose benefits immediately on December 26 and whether she will be able to transfer onto EB immediately, eventually, or not at all. We do not take into account possible inflows into these programs nor exhaustions or exits from the programs between when the data were reported on December 3 and the December 26 sunset date. Figure 2 walks through these determinations for the population on UI as of the UI claims notice released on December 3.

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Which States Are Ending Federal Unemployment Benefits Early

This list has the date each state will stop offering federal pandemic unemployment benefits. It also shows which states are offering bonuses to people who take jobs this summer, and the latest work-search requirements for unemployment eligibility.

Were updating this list regularly. Have new information for your state? Let us know at on Twitter.

State

Pandemic Unemployment Benefits Expired On Labor Day Could They Be Renewed

Millions of Americans lost jobless benefits this month. Some lawmakers are proposing that aid be reinstated in an upcoming spending package. Here’s the latest.

The September termination of unemployment benefits was considered the largest in US history.

After the pandemic-related expansion of unemployment insurance ended on Sept. 6, roughly 7.5 million people lost their benefits entirely, with millions more losing the $300 weekly bonus checks. The temporary federal benefits — which included coverage for those normally ineligible for jobless aid, like gig workers and the long-term unemployed — were in place since spring 2020 to help those who lost income from COVID-19 restrictions or layoffs.

This week, a group of Democratic lawmakers, led by Reps. Cori Bush and Alexandria Ocasio-Cortez, called to reform the unemployment system in the coming $3.5 trillion House spending plan. In a , they noted that the country now “denies life-saving resources to over two-thirds” of those without jobs, as aid now covers “less than half of lost wages.” They also noted that 90% of unemployed workers and “especially Black and Brown communities” have been left with no benefits at all.

With the uptick in delta-variant cases, the COVID era hasn’t come to a close. Could the White House renew those extra benefits? What can people do who need unemployment coverage to make ends meet? We’ll explain below. This story has been recently updated.

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Was The Insolvency In These Eight States So Dire It Merited Benefit Cuts

While a significant majority of state UTF accounts became insolvent in the wake of the Great Recession, only eight of these states decided to address the situation by cutting the duration of their benefitseffectively the only way to cut UI costs without losing out on federal EB and EUC benefits. An obvious question arises: Relative to the other states whose UTF accounts became insolvent, were these eight in more dire shape and thus in need of deeper cuts?

At a basic level, when each of the eight states cut the number of weeks of benefits available, it had outstanding loans to the federal Unemployment Trust Fund. But, alone, having an insolvent UTF account and outstanding federal loans was hardly unique following the Great Recession. Indeed, the number of states with outstanding loans to the federal trust fund at any one time peaked in April 2010, when 34 states had loans outstanding to pay for UI benefits.

Change in annual UI-dedicated state taxes per covered worker needed to achieve a comfortable level of solvency* for state UTF account, 4th quarter 2011

State

Labor force share and long-term unemployed by race and ethnicity in states that cut duration of unemployment benefits following the Great Recession, 2013

As States Stop Extra $300 Unemployment Benefits More Dems Skeptical Of Extension

VERIFY: Yes, states can stop offering the extra pandemic unemployment benefits

Several Democratic lawmakers are expressing skepticism about extending the $300 a week unemployment … benefits beyond their current September 6 expiration.

More and more Republican governors are jumping on the cancellation bandwagon with 11 having announced that their states will stop paying the extra $300 a week federal unemployment benefit to jobless workers. The swell follows the disappointing April jobs report that showed the economy had only added 266,000 jobs, far below expectations. Republicans seized on the jobs report to claim that President Joe Bidens policies, specifically the enhanced unemployment benefit, disincentivize workers to go back to work. Now, some Democratic lawmakers are expressing skepticism about extending the $300 a week payments beyond their current September 6 expiration.

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What Does In Progress Mean For Unemployment Benefits

Have you filed for unemployment and received a notice that says, adjudication in progress? Youre not alone, and it could hold up your claim. Adjudication means theres a discrepancy with your unemployment application, and a specially trained adjudicator needs to look at the claim to clear up the problem.

Why Can States Stop Offering Federal Unemployment Benefits

At the start of the pandemic, The CARES Act created federal pandemic unemployment benefits that let each state participate at their own will.

All states signed on, as just about every part of the country felt the impact of business closures and furloughs due to early pandemic mitigation efforts. When the second and third stimulus bills were passed in December 2020 and March 2021 respectively, the benefits were extended .

But the legislation specifies states can also withdraw from participatingand its as simple as giving the U.S. Department of Labor 30 days notice. States that opt out go back to paying out unemployment claims under the rules of each states labor department, but out-of-work residents will no longer receive the $300 weekly bonus provided by the federal government.

The following federal programs are affected by states that have chosen to stop participating:

So far, all the states withdrawing from the programs are led by Republican governors. The states backing out have said their employment levels are recovering, and businesses looking to hire have been struggling to find people who want to work.

A number of governors are looking at the increasingly tight labor market, seeing a labor shortage, and trying to address it, says Emily Nix, assistant professor of finance and business economics at the University of Southern California Marshall School of Business.

In Utah, the unemployment rate reached 2.8% in April, which is on par with its pre-pandemic rate.

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Several States To Stop Enhanced Unemployment Benefits

The moves will affect nearly 2 million people.

More than a dozen states are planning to end enhanced weekly unemployment benefits in the next couple of months.

The $1.9 trillion American Rescue Plan extended the $300 weekly federal boost through September 6, but at least 16 governors are planning to cut it off as early as June 12 and as late as July 10. According to CNBC, the move will affect nearly 2 million people across Alabama, Arkansas, Arizona, Georgia, Idaho, Iowa, Mississippi, Missouri, Montana, North Dakota, Ohio, South Carolina, South Dakota, Tennessee, Utah, and Wyoming.

Several operators within the restaurant industry have blamed the current labor shortage on enhanced unemployment benefits. A recent Black Box Intelligence survey of more than 360 operators revealed that 57 percent believe the main driver of the labor crisis is elevated unemployment insurance. Wingstop CEO Charlie Morrison said in late April that the bigger payments have affected labor in the supply chain.

has as much to do with the impact of government stimulus and creating an artificially high wage rate that is competitive to the people that are necessary to actually process chicken, Morrison said. And so the absolute number of chickens that are being processed is down. Thats why you see pressure even in the sandwich business and everywhere on chicken right now. Labor shortages are the real challenge were dealing with.

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Who Lost Federal Unemployment Benefits On Labor Day

Florida is among 8 states offering less time in ...

At the very start of the pandemic, the March 2020 CARES Act established temporary federal unemployment aid programs, and the American Rescue Plan in March 2021 extended those benefits to Labor Day. Here’s who was affected by the programs’ expiration, according to a detailed analysis of Labor Department data by the Century Foundation.

More than 3 million additional people lost Federal Pandemic Unemployment Compensation, the weekly bonus — initially $600, then $300 — that helped out-of-work Americans supplement benefits and recover some lost wages. If you’re still eligible to collect state unemployment insurance , you’ll continue to receive some compensation after the cutoff. But the amount will be lower without the weekly $300 bonus.

Some 3.3 million people lost all their Pandemic Emergency Unemployment Compensation, or PEUC, which extended aid to those who had already exhausted their state’s benefits period . This category includes workers who would have no longer been eligible to receive unemployment because they passed their state’s benefit window. The program provided up to 53 weeks of additional aid for those who had exceeded state allowances.

That’s not the full picture of everyone affected by unemployment. Reported jobless rates generally don’t account for those who have left the labor force entirely and are no longer counted as looking for work, such as the long-term unemployed.

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Section Two: Empirical Evidence On The Impact Of Extended Ui Benefits

While the previous section examined the institutional makeup and fiscal accounting of the U.S. UI system, this section examines the evidence regarding a perennial question asked by labor economists: Do UI benefits increase unemployment, and do extensions to eligibility for UI benefits also increase unemployment?

The EUC extensions passed in 2008 have spurred new empirical studies on this question, at least in part because these extensions were economically very significant, increasing duration by sometimes nearly four times longer than standard UI benefits. By and large, the studies examine three prongs of UIs impact on unemployment: microeconomic impacts, specifically the impact of UI benefit extensions on workers decisions macroeconomic impacts of UI benefit extensions on employers demand for labor and macroeconomic impacts of UI benefit extensions on economy-wide demand for labor.

Faqs About Unemployment Benefits By State

When will Covid unemployment insurance benefits end in Alabama?

Governor Kay Ivey announced on May 10, 2021 that Alabama would end pandemic-related federal unemployment benefits on June 19, 2021.

When will Covid unemployment insurance benefits end in Alaska?

Governor Mike Dunleavyâs Department of Labor and Workforce Development Commissioner, Dr. Tamika L. Ledbetter, announced on May 14, 2021 that Alaska would end pandemic-related federal unemployment benefits on June 12, 2021.

When will Covid unemployment insurance benefits end in Arizona?

Governor Doug Ducey announced on May 13, 2021 that Arizona would end pandemic-related federal unemployment benefits on July 10, 2021. Funds will be used for Return-To-Work bonuses for Arizonans who were collecting unemployment insurance prior to the announcement. One-time payments are $2,000 for individuals who rejoin the workforce at a full-time job and $1,000 for part-time. Each will be paid out after completing a minimum of 10 weeks of work. To qualify, recipients must also make $25 per hour or less, equivalent to a yearly salary of $52,000, at their new job and must begin working by September 6, 2021.

When will Covid unemployment insurance benefits end in Arkansas?

When will Covid unemployment insurance benefits end in California?

Pandemic-related federal unemployment benefits are due to continue until September 6, 2021.

When will Covid unemployment insurance benefits end in Colorado?

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Macroeconomic Effects Of Ui Ii: Keynesian Effects On Aggregate Demand

The more traditional macroeconomic case for how UI benefit extensions enacted during economic downturns impact overall unemployment concerns their importance as automatic stabilizers that keep household spending during recessions from falling as far as it would have in their absence. This Keynesian channel is very hard to estimate cleanly with econometrics because of the severe endogeneity problem already referenced: UI extensions only generally occur when unemployment is very high. Hence, a positive correlation between high unemployment and UI extensions will be persistent in the data, but driven by causality that runs from a spike in unemployment to extended UI.

However, evidence from large-scale macroeconometric models such as those used by the Federal Reserve Board, the Congressional Budget Office, and Economy.com consistently find that UI extensions are among the most effective forms of economic stimulus.

Vroman uses the Economy.com model and finds that preGreat Recession estimates of the multiplier associated with UI benefit extensions were too conservative, and that during and after the Great Recession, this multiplier may have exceeded two.

Half Of Us States Ended Enhanced Unemployment Insurance Payments Early Ahead Of Nationwide Termination Of Benefits For Millions Of People

13 STATES IN JUNE TO STOP UNEMPLOYMENT BENEFITS | PUA/DETR-NV

States that ended enhanced federal unemployment benefits early have so far seen about the same job growth as states that continued offering the pandemic-related extra aid, according to a Wall Street Journal analysis and economists.

Several rounds of federal pandemic aid boosted the amount of unemployment payments, most recently by $300 a week, and extended them for as long as 18 months. The extra benefits are set to expire nationwide next week. But 25 states ended the financial enhancement over the summer, and most of them also moved to end other pandemic-specific unemployment programs such as benefits for gig and self-employed workers.

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