Dear Neighbor,
This newsletter has news about unemployment rates, state and federal actions. The next ones may be about small businesses, who's left out of the economic remedies so far, how the legislature works virtually, other resources. What do you want to know about?
Unemployment Data
And here's a dynamic history of claims. Both are federal numbers.
During the week of March 21, claims in Massachusetts jumped from 7,449 the previous week to 147,995 - nearly 20 times as many. More claims were received that week than during all of February, and more than any month during previous recessions. Since then, more businesses have been ordered to close, and the week ending March 28 saw another 22% increase, with the largest increases in food and hospitality, retail, health, and construction. Mass. Taxpayers Foundation estimates that unemployment here may reach 10-12%
The state's Executive Office of Labor and Workforce Development has worked very hard to keep up with the increased number of claims as well as with changing eligibility. They have increased the number of workers from 50 to 500. It must have been an extraordinary effort reassigning or hiring new staff, training them remotely, getting them computers and internet hot spots in some cases.
They are also offering daily Unemployment Town Halls Tuesday through Friday to walk filers through a step-by-step process that will result in a successful unemployment claim and to take questions from claimants. To participate, register for a specific call and the department will send access information. Individuals can also just follow along with the presentation -- but not be able to ask questions other than through the web conference's chat function -- online. You can also apply for unemployment benefits on this website. Step by step instructions can be found here.
Despite these efforts, the Department of Unemployment Assistance has not been able to keep up. Many people have called our office for help, and our constituent services director, Rachel Clinton, is working hard to assist them. Write to us at patricia.jehlen@masenate.gov if you need help getting through to DUA.
State Action
On March 18, the legislature eliminated the one-week waiting period, and the administration waived the job search requirement.
Yesterday, the Senate passed a bill to ensure a four-week extension of benefits to 30 weeks for workers when unemployment spikes rapidly in the state, and would uncap benefits for dependent children. Currently, workers who lose their jobs may be entitled to $25 a week for a dependent child, but the total amount they can receive is capped at 50 percent of their weekly benefit.
The bill would also protect businesses that participate in the unemployment insurance system from being penalized financially if their workers file claims as a result of the pandemic, and give non-profits a 120-day grace period on their next payment into the system.
Federal CARES Bill: important new coverage
One of my main concerns, as chair of Labor and Workforce Development, has been to extend benefits to people in the gig economy, artists, the self-employed, and others whose employers haven't been contributing to the UI system; and to increase benefit levels and the number of weeks from 26 to 30. Rep. Dave Rogers of Cambridge and I filed a bill to do all those things, but our work has been superceded by federal action.
Thanks to hard work by our members of Congress and senators, those concerns have been addressed by the CARES Act, and fortunately the federal government is not bound by the requirement of a balanced budget.
On March 27, the president signed the CARES Act, which does a great deal to help people who have been or become unemployed.
The CARES Act provides
- An additional 13 weeks of federally-funded unemployment insurance benefits, to cover unemployment through 2020 for workers who find themselves still unemployed beyond the next four months.
- $600 per week, in addition to the amount of unemployment insurance normally paid by states, for the next four months for every American collecting unemployment insurance. This is extremely important, since part-time and low-income workers would otherwise have very low benefits.
- Expanded eligibility to cover workers in the gig economy, as well as others who don't normally qualify under their state's programs, including those who are self-employed and those with limited work history.
These benefits aren't available yet, though. Here's what the state says:
The federal government has advised states against implementing specific programming options providing financial assistance to the self-employed and those not traditionally covered under the regular unemployment program until guidance has been issued. DUA is urging the federal government to provide guidance on Pandemic Unemployment Assistance as quickly as possible so that we can help the self-employed, those who have exhausted eligibility under regular unemployment, and others eligible for the new program get the resources they need during these difficult times. Unfortunately, until more specific guidance is issued, those who would not traditionally qualify for unemployment insurance remain ineligible for benefits through the UI Online application system. However, once guidance is given payments under Pandemic Unemployment Assistance will be retroactive to January 27, 2020.
Also in the CARES Act: payments to taxpayers
You have probably read that the CARES Act also provides direct cash payments:
- $1,200 payments for individuals making up to $75,000 per year and $2,400 for married couples making up to $150,000 per year when filing jointly. The value will decrease or phase out completely for those making over the full payment income cap.
- an additional $500 for each child in the family.
- The payment will be automatically deposited into the accounts of those who filed their taxes in 2018 and 2019 by direct deposit, while the payment process for others is still being finalized.
At first, the Treasury Department said Social Security recipients who hadn't filed tax returns would have to file them now to receive benefits. However, on Wednesday, In response to requests from lawmakers, they announced that COVID-19 rebates would automatically be made to Social Security beneficiaries who don't file income tax returns.
Who's still left out of stimulus payments
CBS News reports on others who won't get a stimulus check unless Congress acts again:
- Children who are 17 or 18 years old.
- Many college students between the ages of 19 to 23.
- Adults who can be claimed as dependents.
- Nonresident aliens (in other words, those without a green card).
Thank you to all of you who are letting us know how you and others are being affected, how you're coping, what new solutions may be.
Stay safe, and stay in touch!
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