National Employment Law Project: Advocacy for Jobless Workers

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National Employment Law Project Advocacy for
Jobless Workers

• Responding to Recession Unemployment Insurance
  Advocacy Overview
• CORT Public Benefits
• March 23, 2009

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Reasons for Representing Jobless Workers

• Unemployment benefits represent a first line of
  defense against poverty.
• Unemployment benefits are usually higher than
  welfare benefits.
• An unemployment claim paying ½ average benefit
  levels in MI or OH for 59 weeks is worth 8850.
  For 72 weeks, 10,800.
• Helps prevent foreclosure and eviction.
• Maintains connection to labor force and job
  search.

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State Unemployment Rates, Jan. 09
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County Unemployment RatesJan. 09
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Labor Market Overview

• MIs unemployment rate is 11.6 (01/09)
• Ohios unemployment rate (02/09) is 9.5
• Employment
• Ohio-5.43 million
• Michigan-4.3 million (264,000 lost over year)
• Unemployment
• Ohio-Totally Unemployed 524,000 (01/09)
• Michigan-Totally Unemployed 565,000 (01/09)

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Michigan Employment 01/99 to 01/09
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Ohio Employment 01/1999 to 01/2009
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Michigan Unemployment Rates by CountyJanuary 2009
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Ohio Unemployment Rates by CountyJanuary 2009
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Michigan Unemployment Insurance Benefits At A
Glance

• Average weekly benefit in 2008 300.
• Maximum benefit 2008 362
• Benefit amounts set at 4.1 of high quarter
  wages6 per dependent up to 5
• 39 of every 100 jobless workers got UI
• Average length of claim--15 weeks
• Average payroll tax of 1.09 of wages, or 4.72
  of taxable wages (9,000).

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Ohio Unemployment Compensation Benefits At A
Glance

• Average weekly benefit in 2008 303.
• Maximum benefit 2008 372 to 503
• Benefit amounts set at 50 of average weekly
  wagesdependency allowance
• 32 of every 100 jobless workers got UC
• Average length of claim14.9 weeks
• Average payroll tax of 0.64 of wages, or 2.54
  of taxable wages (9,000).

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Ohio Overview of UC Program

• UC Claims Load
• Jan. 2007new claims averaged 17,492 a week in
  Jan. 2009new claims avg. 31,400
• Insured unemployment averaged 127,760 weekly in
  Jan. 2007 and reached 241,767 a week by January
  2009, or an 89 increase.
• Feb. 0965,203 EUC claimants
• Regular UC Benefits were 1.586 Billion in 2008,
  EUC paid 217.4 million thru 12/08

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Michigan Overview of UI Program

• UI Claims Load
• Jan. 2007new claims averaged 25,637 a week in
  Jan. 2009new claims avg. 45,345
• Insured unemployment averaged 197,322 weekly in
  Jan. 2007 and reached 309,131 a week by January
  2009, or an 57 increase.
• Feb. 0984,000 EUC claimants
• Regular UI Benefits were 2.225 Billion in 2008,
  EUC paid 477.6 Million thru 12/08

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Long Term Unemployment Overview of UI Benefit
Programs

• Regular State Benefits--up to 26 weeks duration
• Emergency Unemployment Compensation benefitsup
  to 33 weeks duration
• Extended Benefits
• Triggered on EB for 13 more weeks in Michigan
• Will trigger on soon in Ohio
• Both MI and OH can pay 20 weeks of EB if they
  adopt a Total Unemployment Rate (TUR) trigger for
  their EB programs
• March to Dec. 0994,700 EUC claimants to exhaust
  in Ohio and 123,800 in Michigan

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Filing Unemployment Claims

• Ohio Claims Filing By phone [phone] or
  by Internet http//unemployment.ohio.gov.
• Michigan Claims Filing By phone [phone]
  or by Internet at http//www.michigan.gov/uia.

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Michigan Overview of UI Policies Impacting Low
Wage Workers

• 2002 NELP/MLHS report Out of Date and Out of
  Reach
• Single parent working 23 hours a week at 7.50 an
  hour monetarily ineligible
• Part time workers must seek full time work
• Max. WBA is lowest in Midwest
• Good practice-alternative base period-helps lower
  wage workers gain eligibility

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Ohio Overview of UC Policies Impacting Low Wage
Workers

• 2004 NELP/Policy Matters Ohio report
  Unemployment Compensation in Ohio Protecting a
  Critical Safety Net
• Low wage workers must average a weekly wage of
  210 a week in each week
• Part time workers must seek full time work
• Dependency allowances paid only to claimants
  receiving maximum weekly benefit
• Good practice-alternative base period-helps lower
  wage workers gain eligibility

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Overview of American Recovery and Reinvestment
Act Help for Jobless Workers

• Extended expiration of EUC to 12/31/09
• Provides added 25 a week in benefits
• Funds UI Modernization up to 7 Billion
• Partially repealed income taxation of
  unemployment benefits
• Made EB fully federally funded and suspended
  federal interest on loans
• Added funds for training

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Overview of Unemployment Representation Activities

• Handling administrative hearings
• Community Education/Group Representation
• Administrative Advocacy
• Language Access
• Debit Cards
• Claims Filing and Overcoming Barriers
• Appeals to Board of Review and Courts

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For More Information

• Visit NELPs website at www.nelp.org
• Refer Jobless Workers to unemployedworkers.org
• Rick McHugh, Midwest Coordinator, 734.369.5616
  cell 734.546.0901 rmchugh_at_nelp.org