Please ensure Javascript is enabled for purposes of website accessibility

US Consumer Spending Falls as Trump Tariff’s Muddle Economy

2 days ago

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

2 days ago

In Win for Trump, US Supreme Court Limits Judges’ Power to Block Birthright Citizenship Order

2 days ago

California’s Newsom Sues Fox News for $787 Million for Defamation Over Trump Call

2 days ago

Motorcycle Collides With Tractor in Fatal Fresno County Collision

2 days ago

Fourth of July Celebrations Begin Saturday. Here’s Your Fresno Area Guide

2 days ago

Bill Moyers, Broadcaster and LBJ’s White House Press Secretary, Dies at 91

3 days ago

State Department Approves $30 Million for Gaza Humanitarian Foundation

3 days ago

Cargo Ship That Caught Fire Carrying Electric Vehicles Sinks in the Pacific

3 days ago

4 Million Acres of California Forests Could Lose Protection. What Trump’s ‘Roadless Rule’ Repeal Could Do

4 days ago
Walters: Politics, Snafus Stall Jobless Benefits
dan_walters
By Dan Walters, CalMatters Commentary
Published 5 years ago on
August 26, 2020

Share

The good news for millions of out-of-work California workers is that the federal government is offering them an additional $300 per week in unemployment insurance benefits.

The not-so-good news is that the bonus is just half of the $600 in extra jobless benefits that expired nearly a month ago, it’s uncertain when it will begin and it may last only a few weeks.

Dan Walters

Opinion

There’s another problem. The state Employment Development Department is already behind on processing hundreds of thousands of unemployment insurance claims so whenever the Federal Emergency Management Agency sends more money to California, it could take many weeks for cash to reach stressed-out workers.

The payments are desperately needed as California grapples with its highest unemployment level since the Great Depression, induced by shutdowns ordered to combat the COVID-19 pandemic.

The state’s official unemployment rate topped 16% in June but fell to 13.3% in July, as businesses rehired in response to Gov. Gavin Newsom’s initial reopening. However, the July rate, announced last week, was based on federal surveys conducted during the week of July 12, which exactly coincided with Newsom’s second shutdown order.

California’s Official 13.3% Jobless Rate in July Was Fifth Highest of Any State

Since then, unemployment has soared again and could approach 20% this month if more than a half-million workers who have left the labor force since last year are counted. They push total real-world unemployment to more than 3 million, identical to the 3.1 million Californians now receiving state and federal unemployment insurance benefits.

The data indicate that California’s economy has, in relative terms, been hit harder than most other states, and Southern California is the epicenter of our dramatic economic decline.

California’s official 13.3% jobless rate in July was the fifth highest of any state. Los Angeles County had the second-highest rate among California’s 58 counties at 18.2%, and the Los Angeles-Orange County metropolitan area’s 18.1% rate was the ninth highest of the nation’s 389 recognized regions.

Behind those numbers are millions of families worried whether they can make their rent, mortgage, and utility payments, put food on the table and otherwise survive the pandemic, the recession and, more recently, horrendous heat waves and terrible wildfires.

State and federal unemployment insurance benefits, more than $67 billion, were keys to familial survival in the pandemic’s first months. That includes the $600 weekly bonus money that Congress and President Donald Trump provided in the CARES Act, but it expired on July 31 and Trump and Congress have been at loggerheads ever since on additional relief.

Officials Blamed the Suddenness of Crisis and Antiquated Computer System for the Delays

Meanwhile, however, the chronic inability of the Employment Development Department to quickly deliver approved benefits is making matters worse.

Administration officials were summoned to an Assembly budget subcommittee hearing this week to defend themselves and receive a bit of a tongue-lashing from lawmakers whose constituents are complaining about employment department lethargy.

Officials blamed the suddenness of the crisis and a very antiquated computer system for the delays but said things are improving.

“We’ve seen great movement in the last four weeks,” Sharon Hilliard, director of the Employment Development Department, told lawmakers, adding, “We’re going in the right direction.”

Subcommittee members were skeptical and one, Assemblyman David Chiu, was sharply critical of the department’s reliance on Deloitte, a major consulting firm, for trying to shore up its present computer system.

“We’ve seen this movie before,” Chiu, a San Francisco Democrat, told Hilliard. “There’s been failure after failure after failure.”

Newsom has created a “strike team” to delve into the employment department’s shortcomings and propose solutions. Meanwhile, hundreds of thousands of unemployed Californians await benefit payments that for many could be the difference between survival and homelessness.

CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters. For more stories by Dan Walters, go to calmatters.org/commentary.

[activecampaign form=19]

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

I Detest Netanyahu, but on Some Things He’s Actually Right

DON'T MISS

University of Virginia President Resigns Under Pressure From Trump Administration

DON'T MISS

How Did the Supreme Court Rule? Here’s a Look at the Big Cases

DON'T MISS

Mamdani’s NYC Primary Win Sparks Surge in Anti-Muslim Posts, Advocates Say

DON'T MISS

Trump Sends in DOGE to Slash Federal Gun Regulations by July 4

DON'T MISS

Tensions Flare at Announcement of Major Fresno County Gang Takedown

DON'T MISS

Measure C ‘Blackmailed’ As Fresno Enviro Coalition Gets Huge Say on Transportation Tax

DON'T MISS

Despite $49M Deficit, Fresno Unified Gives Top Brass 5% Raise, 3% One-Time Bonus

DON'T MISS

US Consumer Spending Falls as Trump Tariff’s Muddle Economy

DON'T MISS

US Supreme Court Preserves Key Element of Obamacare

UP NEXT

Much of LA’s Community of Immigrants Is Hiding, Leaving a Hole in the Fabric of the City

UP NEXT

Things Netanyahu Might Say if Injected With Truth Serum

UP NEXT

California Politicians Ignore Ag’s Troubles, but Boost Movie Business

UP NEXT

Trump’s Courageous and Correct Decision to Bomb Iran

UP NEXT

How the Attacks on Iran Are Part of a Much Bigger Global Struggle

UP NEXT

Groceries Are Now a Luxury. So Is Breathing.

UP NEXT

California Politicians Agree on School Money, but Poor Test Scores Need Attention

UP NEXT

Sen. Alex Padilla: This Is How an Administration Acts When It’s Afraid

UP NEXT

Bay Area Transit Systems Want More Money. But Their Payrolls Soared as Ridership Declined

UP NEXT

History Suggests the GOP Will Pay a Political Price for Its Immigration Tactics in California

Mamdani’s NYC Primary Win Sparks Surge in Anti-Muslim Posts, Advocates Say

23 hours ago

Trump Sends in DOGE to Slash Federal Gun Regulations by July 4

2 days ago

Tensions Flare at Announcement of Major Fresno County Gang Takedown

2 days ago

Measure C ‘Blackmailed’ As Fresno Enviro Coalition Gets Huge Say on Transportation Tax

2 days ago

Despite $49M Deficit, Fresno Unified Gives Top Brass 5% Raise, 3% One-Time Bonus

2 days ago

US Consumer Spending Falls as Trump Tariff’s Muddle Economy

2 days ago

US Supreme Court Preserves Key Element of Obamacare

2 days ago

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

2 days ago

Fresno Unified Trustees Will Get Automatic Raises on Tuesday

2 days ago

Alleged ‘Fake’ ICE Agents Charged. Fresno Court Date Set

2 days ago

I Detest Netanyahu, but on Some Things He’s Actually Right

Like a lot of people of center-right/center-left political leanings, I’ve spent the past few decades detesting Prime Minister Benjamin Netan...

22 hours ago

2022 Election Rally for Netanyahu
22 hours ago

I Detest Netanyahu, but on Some Things He’s Actually Right

University of Virginia President James Ryan Resigns
22 hours ago

University of Virginia President Resigns Under Pressure From Trump Administration

23 hours ago

How Did the Supreme Court Rule? Here’s a Look at the Big Cases

Zohran Mamdani Speaks to Supporters
23 hours ago

Mamdani’s NYC Primary Win Sparks Surge in Anti-Muslim Posts, Advocates Say

American Flag Revolver
2 days ago

Trump Sends in DOGE to Slash Federal Gun Regulations by July 4

Rob_Bonta_Speaking_At_Press_Conference_1280x720
2 days ago

Tensions Flare at Announcement of Major Fresno County Gang Takedown

Garry_Bredefeld_Sandra_Celedon_Mesure_C_1280x720
2 days ago

Measure C ‘Blackmailed’ As Fresno Enviro Coalition Gets Huge Say on Transportation Tax

Fresno_Unified_Raises_1280x720
2 days ago

Despite $49M Deficit, Fresno Unified Gives Top Brass 5% Raise, 3% One-Time Bonus

Help continue the work that gets you the news that matters most.

Search

Send this to a friend