Extended Benefits = Extended Recession?!!

In a recent congressional report by the Committee of Ways and Means, the effect of the Emergency Unemployment Compensation (EUC) program is examined, and the data is staggering. Historical periods of extended benefits and record-breaking costs added to the national debt confirm what many employers (UTCA included) have believed as the US has struggled to create new jobs.

EUC Duration graph

This is a highly recommended read:


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Choosing a Real Partner for Measurable UI Program Results

There’s a lot of misinformation in the marketplace about what it takes to reduce unemployment costs. That’s where UTCA comes in.  Our role in the industry as an honest information broker and Thought Leader focuses on clearing up areas of legitimate confusion or manufactured misunderstanding.  Our tagline “Educating the Marketplace, One Client at a time,” says it best. 

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Big Data, Big Confusion Part II: Hearing Run-Off Factor v. Win Percentage – The Real Measure of Wasted Time and Resources

In the previous post  we discussed the Disputed Claims Percentage (DCP) as a key metric and its relevance in gauging your organization’s UI program. This week we’ll take a look at the always-dreaded, over utilized, and deceiving appeal process. 

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Big Data, Big Confusion: What are your numbers telling you?

Analytics have infiltrated every aspect of our lives, for better or for worse. In many cases, it’s just plain confusing. What numbers should you focus on? What’s truly relevant and what is, for lack of a better term, just “fluff”? 

Holiday Help!

Many employers staff up during the last quarter of the year.  The increase in the number of people out and about, shopping during the holiday season, in turn increases the necessity for employers to hire.  Despite earlier prognostications that temporary seasonal jobs would not be as plentiful as last year, the retail industry added 159,000 jobs in October. Think about it, additional security is required at the mall; additional staff is needed to stock the shelves at night; additional employees are needed to pour the coffee and lattes for the shoppers during the wee hours of the night… 

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What do Prisoners & Millionaires Have in Common?

First, a warm up question: Who takes longer to find work after filing for unemployment compensation, Millionaires or Prisoners? This is actually a trick question because prisoners don’t qualify for unemployment.  Prisoners, by being incarcerated, fail to meet the standard of “ready for work” or “actively looking for work.” Yet, unemployment has been paid to prisoners, sparking a nation-wide crackdown on such fraudulent payments.  Millionaires are another story.  Hey, who isn’t ready or actively looking to be hired as a Millionaire?   How many Millionaires “qualified” for unemployment benefits when the financial markets hit the skids during the recent Great Recession?  Even in the face of separation packages in the millions of dollars, many institutions paid out unemployment benefits to very high wage earners.  Despite the clamor over the unemployment  insurance expenses for these two groups, the slowest legal group of claimants to return to work, and the receivers of the largest proportion of overpayments in the unemployment system constitute a third group; the Average Claimants whose household made under $50,000 per year. The majority of unemployment insurance payments – around 70 percent — go to these households, a figure recently reported by Bloomberg. Here’s a math test: If in any given year there happen to be 1,000,000 Average Claimants  (households earning under $50k) who happen to misfile beneficially and are consequently overpaid by $1,000 each, then how much systemic overpayment is that? That’s right. One billion dollars. Indeed, Department of Labor Statistics estimates that in 2012 overpayments nationally topped $4.8 billion. The waste basket was already full.

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Achieving Unemployment Savings & Good Corporate Citizenship

Isn’t this an oxymoron? The reality: Successful organizations aggressively and proactively manage their unemployment program and costs. They are engaged and knowledgeable as to trends and key data points ultimately impacting their unemployment spend, and then mobilize to make timely adjustments.  Indeed, employers who keep a keen eye on unemployment cost by maximizing effective solutions (UTCA… smile) for managing those costs strategically and in response to claim activity ARE good corporate citizens!  How could that be?

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