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FEBRUARY 17, 2010 | by ELIZABETH STELLE

The True Cost of Unemployment Compensation


Nathan Benefield posted on 2/17/2010 11:48:00 AM
Mary Ellen,

No one is suggesting eliminating unemployment benefits for those who need it. What we are suggesting is reforms for those who don't.

For instance:
"'Requiring participation in job search programs,' ---- I DO prove my job search by actively using the CareerLink system along with many other job boards"

That is good, you should be seeking a good job. But Pennsylvania's unemployment system does not REQUIRE actively searching for a job (or at least, makes no effort to verify) to receive benefits, which it should.

"'Deducting other benefits, such as severance pay, Social Security, and vacation pay from unemployment benefit rates," -----Umm, hello? unemployed means I have no vacation pay."

You would think that, but many collect BOTH unemployment and severance package. We are proposed they not collect both at the same time, or at least take an offset for their severance package.

Indeed, I would argue that there are many taking advantage of the system in these ways, that have reduced the benefits that those like yourself are receiving.


Mary Ellen posted on 2/17/2010 11:28:00 AM
It is interesting to note that Ms Bryan is employed -- so it is easy to state that the unemployment system in PA rewards people for not working. I became unemployed for the first time in over 25 years last April. I continue to apply for any jobs that come close to my skillset, and take the few interviews that come my way --but they are few and far between. The income provided by unemployment, combined with my spouse's three other jobs, allow us to keep our necks above water and not on the fast track to bankruptcy, as has been the course for so many people effected by this negative market that our country is struggling to crawl out of. Ms. Bryan seems to think that just taking away unemployment benefits will magically add jobs to the market place--but that is not so. The supposed $727.9 million that could have been 'saved' by not paying benefits would have gone to other expenses generated by the thousands of people who would have been forced to claim bankruptcy, leaving untold bills also unpaid and causing even more companies to lay off more employees.

As to the proposed alternatives, lets be clear:
Requiring participation in job search programs, ---- I DO prove my job search by actively using the CareerLink system along with many other job boards
Deducting other benefits, such as severance pay, Social Security, and vacation pay from unemployment benefit rates, -----Umm, hello? unemployed means I have no vacation pay.
Adjusting eligibility for benefits, and ----- adjusting them how? by saying that yes indeed I have paid into the system for 25 + years so yeah, I deserve to get a little help to pay my electric bill?
Ensuring that the length of benefits does not exceed actual weeks worked. ---again, I am absolutely not going to be getting benefits for 25+ years!

Let me also state that much like the social security system, I have been paying into unemployment "insurance" for over 25 years. I am guessing that again, much like other insurance bills I have paid in my life time, my return will be much much lower than my 'investment.'

There are so many other ways that the Commonwealth wastes the money, unemployment benefits is not one of them.


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