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The real unemployment crisis to come

At the end of November, slews of unemployed persons will be cut off from unemployment benefits when emergency federal extensions end.

It is important to recall that unemployment benefits are not an entitlement program or a form of welfare. Unemployment is an insurance program that tides folks over through temporary periods of unemployment. It allows them to maintain their dignity and the basics of life so that they may be best prepared to re-enter the job market (it is a lot harder to get re-hired if you haven’t had a shower or a decent meal in weeks, or are living out of the back seat of your car). It is also a program that requires the active participation of beneficiaries in job searches, skills readiness training, and other such programs that best prepare them for re-employment.

Unfortunately, every recent recession has seen an increase in the time necessary for a jobs recovery. This recession has been by far the worst. The chart below shows the relatively fast jobs recovery following past recessions. Jobs recoveries began to lengthen with the 1981 recession.

There is no jobs recovery right now, and many of the jobs unemployed persons lost will never come back. Many have already received a full 99 weeks of benefits. Many will need significant retraining to prepare for new jobs. With the November cut-off, others will never get that far. In the following article, the National Employment Law Project projects that 1.2 million people are faced with a November 30th cut-off. The question is, how will they and their families eat, how will their rents be paid, how will they prepare for jobs if they become homeless and transient? As Christians, and particularly members of the PNCC which has a long history of advocacy for workers, we need to ask those questions and make our voices heard so that those who are ready, willing, and able to work are not abandoned.

From NELP: Some 1.2 Million Jobless Workers Will Lose UI Benefits if No Extension, Report Says

About 1.2 million jobless workers will lose emergency unemployment insurance benefits if Congress fails to extend the benefits again by Nov. 30, according to a report released Oct. 22 by the National Employment Law Project.

The 10-page report found that of those 1.2 million workers, 387,000 are workers who were recently laid off and are now receiving six months of regular state benefits.

“These are people who have been laid off through no fault of their own and are desperately looking for jobs, but would be snapped from the lifeline of jobless benefits just as the holiday season kicks into high gear,” said NELP executive director Christine Owens. “Congress will have to act fast when it reconvenes to avoid a catastrophe. The clock is ticking.”

California, Florida, Illinois, Pennsylvania and New York top the list of states that would face the most cutoffs, according to the report.
Report Findings

The report includes the following findings:

  • Since the unemployment insurance program was created in response to the Great Depression, Congress has never cut federally funded jobless benefits when unemployment was this high for this long (over 9 percent for 17 consecutive months).
  • Businesses and the struggling economy—especially the retail sector—will take “a major blow” if Congress fails to continue the federal jobless benefits during the holiday shopping season.
  • In 2009, the increase in the number of people in poverty would have doubled were it not for unemployment insurance benefits.
  • With the average unemployment extension weekly check of $290 replacing only half of the average family’s expenditures on transportation, food, and housing, jobless workers have a major incentive to look for work.
  • The 51-day lapse of the federal UI extension program this summer caused substantial hardship for many of the more than 2.5 million unemployed workers cut off from benefits.

“Cutting unemployed job seekers off the extended unemployment benefits they need and have counted on receiving is hard any time, but doing so around Thanksgiving and the ensuing holidays is especially harsh—and counterproductive,” Owens said.

In New York, per the Department of Labor (my employer), 190,000 will be loosing benefits immediately:

NY state prepares for end of jobless benefits: New York state prepares for end to extended unemployment benefits; Congress controls fate

ALBANY, N.Y. — New York is preparing for the possibility that an extra 190,000 residents could lose emergency unemployment insurance benefits at year’s end if Congress fails to act next week, state Labor Commissioner Colleen Gardner said Friday.

“This is no time to cut off benefits,” Gardner said. “We still have a job market where there’s only one job opening for every five people looking for work.

“We estimate that for every dollar invested in unemployment insurance benefits, close to $2 is spent in every local economy,” she added in a conference call with reporters. “That’s especially important between now and the end of the year as the holiday time approaches.”

More than 100,000 New Yorkers already have exhausted their emergency benefits. Some 30 percent of those have tapped public assistance, typically food stamps and sometimes the Medicaid health care program for the poor, Gardner said.

An additional 190,000 state residents could lose out by Jan. 1 or around 400,000 by May 1, she said.

Republicans in Congress want spending cuts of $5 billion to $6 billion a month as a condition for extending emergency benefits scheduled to expire in December. Up to 2 million people could lose the benefits if the Democratic-controlled Congress doesn’t act in the postelection lame-duck session.

Jobless people are eligible for up to 99 weeks of benefits in most states. The first 26 weeks are paid by states. About 3.7 million draw them now.

Democrats argue that the extended benefits should be paid for with deficit spending because it injects money into the economy. Jobless people immediately spend the cash, they explain. But Republicans note that the government had to borrow 37 cents of every dollar it spent last year, and it’s time to draw the line.

From a Call to Action by IWJ (please sign the NELP Petition to Congress):

The good news for the new unemployment numbers: The economy added 151,000 jobs last month. The bad news: Official unemployment remained at 9.6 of the work force. Long-term unemployment continues to affect almost 42 percent of the nation’s 14.8 million jobless workers, according to the National Employment Law Project. The average spell of joblessness grew to 33.9 weeks in October, the worst since the government began collectinmg this data in the 1950s.

But, it’s one thing to talk about numbers and quite another to remember living human beings: unemployed workers and their families who are suffering severely. Every day, untold numbers of unemployed workers are asking: How can I feed my family? How can I buy the medicine to heal my sick child? How can I pay the mortgage? How?

On November 30th jobless benefit extensions expire. Unless Congress acts to extend benefits for another year, two million workers will be cut off next month alone and any brief extensions will still put millions at risk of cut-offs next year. Not only would this be catastrophic for millions of families; it would deny struggling businesses needed revenue during the rapidly approaching holiday season and beyond.

We can’t let this happen! Please call your Senators and Representative 202-224-3121 to urge them to extend jobless benefits for another year. Please tell your relatives and friends to call also.

It doesn’t matter whether your members of congress were elected, defeated or didn’t run last week. They are still your representatives now and need to hear your voices loud and clear.

And then join tens of thousands by signing this online petition to Congress:

The holidays will soon be here. Our joint efforts can make the difference between a season devoid of hope and joy for so many or a renewed sense that in the midst of pain there is a glimmer of light on the other side.

Christian Witness, PNCC, , , ,

Vocations: a growth sector

A story in the US News and World Report: 20 Industries Where Jobs Are Coming Back notes that jobs in religious and charitable institutions (with vocations being the largest share of jobs in that sectors) is among the top 20 areas with job growth. In fact, that sector has shown growth since before the recession began.

If you’ve been paying close attention to the economy and you’re inclined to look on the bright side, well, finally there is one.

As President Obama has been eager to point out, the private sector has been adding jobs for several months in a row. It’s still way too early to declare the return of prosperity, since nearly 15 million Americans remain unemployed and some key industries are still mired in recession. But the good news is finally starting to outweigh the bad, and economists hope that a virtuous cycle will soon replace a culture of gloom: Gradual hiring eventually makes consumers more optimistic, and as they spend more, business confidence grows as well. If that happens, companies are likely to keep on hiring.

Everybody wants to know where the jobs are, of course, so I analyzed data from the Department of Labor on employment levels in dozens of industries over the last three years. In most industries, the trend is similar: Job losses have stopped, but hiring hasn’t really picked up. So I looked for industries that have shown a notable increase in jobs over the last year.

In most of these fields, total employment is still far below the levels at the end of 2007, when the recession began. That illustrates how far we need to go until the economy is truly healthy again. But a recovery has to start somewhere, and these industries are the first to feel a hint of optimism. Here are 20 fields where jobs are starting to return:

…

Religious and nonprofit groups. Donations dipped during the recession, but religious, nonprofit, social, and business organizations have fared okay lately as endowments linked to the stock market have recovered and other sources of funding have stabilized. Clergy—a somewhat recessionproof calling—represent the single largest profession within this group.

Jobs gained in 2010: 56,000

Change since 2007: 9,000 jobs gained

For those seeking, both out of school, on second or third careers, or in retirement, the Savonarola Theological Seminary offers scholarships and other assistance so you can attend.

To find out more about vocations to the diaconate and the priesthood, please contact the Savonarola Theological Seminary of the Polish National Catholic Church, 1031 Cedar Ave, Scranton, PA 18505. School, (570) 961-9288, Office, (570) 343-0100. You may also E-mail me and I will get your E-mail to the right people.

Poland - Polish - Polonia, Political, , , ,

75th Anniversary of the Unemployment Insurance Program

This year marks the 75th anniversary of the Unemployment Insurance Program. On the afternoon of August 14, 1935, President Franklin D. Roosevelt signed the Social Security Act into law. This groundbreaking piece of legislation marked the beginning of the federal-state Unemployment Insurance program. During the past 75 years, millions upon millions of workers who lost jobs through no fault of their own have received temporary unemployment benefits.

Unemployment continues to play a major role in supporting workers when layoffs occur. It is important to recognize the key role that the program plays in economic stabilization. For 75 years Unemployment Insurance has been there when times turn tough, not as a handout, but as a help in the form of weekly paychecks to workers who are ready, willing, and able to work; who are actively seeking employment. Today, with one job for every five people looking, it remains vital in ensuring economic stability for working families, allowing workers to continue to support their families while they get back to work.

The State of Wisconsin had long been known for its progressive attitude toward labor relations and its advocacy for improvement in the socio-political system of the early 1900’s. The state’s leadership embraced the “Wisconsin Idea,” a philosophy proposed by the University of Wisconsin, which holds that the boundaries of the university should be the boundaries of the state. It advocates for the application of research conducted in the University of Wisconsin System to improvements in health, quality of life, the environment, and agriculture for all citizens of the state. As part of these reforms, Wisconsin enacted the nation’s first unemployment insurance law in 1932, in the midst of the Great Depression. Six other states enacted UI laws prior to the Social Security Act of 1935 – California, Massachusetts, New Hampshire, New York, Utah, and Washington.

Wisconsin issued the first unemployment check in the amount of $15 to Neils B. Ruud of Madison, Wisconsin on August 17, 1936.

A close examination of the check reveals that among the 4 signatures authorizing payment was the signature of Peter Anthony Napiecinski, a member of the Industrial Commission of Wisconsin, and the son of Polish immigrants.

Peter A. Napiecinski (AKA Napieczinski) was born in Two Rivers, Wisconsin on May 21, 1892, the son of Thomas and Julia (nee Lewandowska) Napiecinski, Polish immigrants. He was one of eight children in his family, and one of two who went to college.

After graduating from high school, Peter was accepted to the University of Wisconsin — Madison. He worked as a telephone operator on campus to pay his tuition. He was later a starting forward for the University of Wisconsin Badgers basketball team and was also a member of the Phi Alpha Delta Fraternity.

Following graduation, Peter served as a Captain in the United States Army in Europe during World War I. Leading a platoon, he encountered a German contingent. He studied how his men looked at the enemy, and noted their fears. He knew that he needed to say something to prepare them, so he told them, “Work for a cause, but fight for your dreams.”

Following the war, Peter attended Law school. Upon graduation he practiced for 11 years during the Great Depression specializing in rescuing businesses on the verge of bankruptcy. One of the businesses that he was able to save was Acme Galvanizing, which upon re-opening provided jobs for 100 people.

Governor Albert George Schmedeman appointed him to the Industrial Commission of Wisconsin where he served from 1933 to 1937.

Peter lived to be 100 old. He credited his work in the Unemployment Insurance Program as among the greatest accomplishments of his life. He passed on December 26, 1992 in Milwaukee.

Christian Witness, Current Events, Events, Perspective, Political, , , , , ,

Jobs Crisis March

Are you concerned about the crisis of jobs? If so, join Interfaith Worker Justice at the One Nation Working Together rally in Washington, D.C. on Saturday, October 2.

The rally, at the Lincoln Memorial on the National Mall from noon to 4 p.m., will have terrific speakers, music and informational tables. Four hours is not too long to make a stand for jobs. Please bring your friends and family. The turnout for the rally will demonstrate the extent of concern about the unemployment crisis. The bigger the turnout, the louder message, which will mean more media coverage and greater political impact.

If you want to meet up before the rally and go together, meet at IWJ’s Capitol Hill townhouse at 404 4th Street, NE at 11 a.m. After the rally, plan on stopping by the townhouse around 4:30 p.m. for some snacks and fellowship. Again, the address is 404 4th Street, NE – a short walk up Massachusetts Avenue from Union Station.

Current Events, ,

Taking advantage of the neediest – scams and unemployment frauds

From the Texas Workforce Commission: TWC Reminds UI Claimants that Filing is Free, Warns Against Fee-for-Filing Scams

The Texas Workforce Commission (TWC) warns Unemployment Insurance (UI) claimants to be aware of unscrupulous business operators who may try to charge a fee to file unemployment claims. Filing for unemployment benefits through TWC, as always, is free.

Claimants who sign on for so-called “fee-for-filing” scams could later discover unemployment claims were never filed on their behalf. They also may have given their Social Security numbers to someone they believed to be a TWC employee.

Claimants should always seek online UI information through Texas Workforce or by using the e-mail form found on TWC’s website.

TWC wants to ensure that UI benefits go to only those who qualify and to ensure that no one is taken advantage of by someone illegally posing as a TWC staff member or by unscrupulous business operators.

UI claimants also are reminded that TWC unemployment staff never perform home visits, ask for Personal Identification Numbers (PIN) or use text messages to contact claimants. Claimants should only give personal information when filing for benefits online at www.texasworkforce.org or when speaking to an unemployment benefit customer service representative on the Tele-Center phone filing system.

It is critical that UI claimants do not pay for a government service that is free.

The UI program, funded through employer taxes, provides temporary, partial-income replacement to workers who have lost their jobs through no fault of their own. TWC administers and oversees the collection of taxes from employers and the payment of UI benefits to qualified claimants.

From the Plattsburgh Press Republican: State Labor Department warns of job scams

The New York State Labor Department warns job seekers of a growing number of online employment scams that promise high pay for little work.

Scammers are using social-media sites such as Facebook and e-mails designed to lure desperate job seekers. The Labor Department was notified of the scam by several people searching for employment that used its Facebook page.

Labor Commissioner Colleen Gardner said the idea that these predators would target such vulnerable people in such difficult economic times is appalling.

“These ‘jobs’ are not endorsed by the Department of Labor,” she said in a press release. “If you want real jobs, we have them for you. I encourage all unemployed New Yorkers to use our new Job Bank and visit a local One-Stop Career Center.”

Labor Department Press Officer Michelle Duffy said the scam artists target people in different ways.

Some ask the victim to pay a fee for an interview that may never take place. Others will ask for personal information before they will provide additional details about the fictitious job, to use that information for identity theft.

The Labor Department released the information today because Sundays and Mondays are the busiest days for the unemployed to go online to certify for benefits and look for jobs.

The Labor Department offered some tips to avoid becoming a victim.

  • Don’t open any unsolicited e-mails or unscanned attachments, even if the attachments are from people you usually communicate with.
  • Don’t “friend” recklessly, and be especially wary of unsolicited invitations in your Facebook and Twitter accounts.
  • Never provide personal information, except to a completely trusted and secure site.
  • Remember the old saying, if it sounds too good to be true, it probably is.
  • Finally, if you feel you’ve been a victim, contact your local law-enforcement agency.
Current Events, Political,

More on the effects of the unemployment benefit lapse

From MichiganLive: Lapse of federal unemployment benefits costs U.S. economy $10 billion

Ten billion dollars. That’s how much money has not been spent in the U.S. economy since May because of the expiration of the federal unemployment benefit program, according to Lawrence H. Summers, director of the National Economic Council, writing on the White House blog.

That’s money that unemployed Americans who were receiving federal unemployment benefits would have spent on gas, groceries, utilities, rent and other basic necessities —” but didn’t.

Missed unemployment insurance payments since May total over $10 billion —“ enough to have created 100,000 jobs. An abrupt and premature withdrawal of relief is not only something families cannot afford, it is something that the economy cannot afford at a time when the economy is at a critical juncture.

In Michigan, reports Ed Brayton of the Michigan Messenger, it equaled $205.6 million in lost economic stimulus.

Aside from the economic hardship suffered by those who have lost benefits, the reduction in economic activity threatens the recovery, according to Summers.

Unemployment insurance puts money in the pockets of the families most likely to spend the money —“ which in turn expands the economy and creates jobs. The nonpartisan Congressional Budget Office has identified increased aid to the unemployed as one of the two most cost-effective policy options for increasing economic production and employment.

…and from the Rockford Register Star: Strain on aid agencies rises with jobless extensions stopped

ROCKFORD —” All Kim Adams-Bakke has to do to judge the effect of lapsed unemployment benefits is listen to the chatter in the Rock River Valley Food Pantry’s waiting room.

—I hear a lot of people talking about them and what will happen if the extension doesn’t go through,— said the pantry’s executive director. —We know this is affecting us.—

It’s been 44 days since funding for 73 weeks of unemployment extensions lapsed, with efforts since to revive them ending in congressional stalemates. The benefits are in addition to the 26 weeks’ coverage offered by the states.

More than 100,000 Illinoisans have prematurely exhausted their benefits before being able to take advantage of the four tiers of extensions available.

Although a Senate vote on the funding is expected next week, it’s far from a sure thing that Democrats will garner the 60 votes they need to overcome a filibuster and pass the measure. The uncertainty has social service agencies like the food pantry preparing for the worst in the midst of an already challenging year.

—We don’t have food,— Adams-Bakke said. —Some of the basics that you and I assume will be in our pantry, they’re not there for our clients. We need everything: cereal, canned food, proteins, everything. Our extras that we have are starting to dwindle.—

Keeping warm and dry

Housing is likely the first priority for individuals or families hit by the unexpected loss of unemployment benefits, and requests for help through the city of Rockford’s Community Services Department have soared this year. Director Jennifer Jaeger said inquiries into the department’s emergency housing programs, many of which cover Boone and Winnebago counties as well as the city, have been —nonstop— this year.

—We have definitely seen a significant increase in phone calls from people whose unemployment benefits have run out,— she said. —We’re trying to schedule appointments for them as quickly as we can. Even before this most recent occurrence, we have been booked fairly solidly for six or eight weeks.—

Food on the table

Along with the food pantry, area demand for the federal food stamp program popped up again in June. More than 56,000 people in Boone and Winnebago counties were receiving funds from the Supplemental Nutrition Assistance Program. More than $8 million, or about $144 a person, was spent in June alone on the program.

Demand has been up across the state, said Tom Green, spokesman for the Illinois Department of Human Services. Through June, more than $1.3 billion has been spent on food stamps this year, compared with about $1.1 billion through June 2009.

—I can only predict that July would be higher,— he said.

The temporary assistance for needy families program, or TANF, has also seen increased demand after years of decline. In Boone and Winnebago counties, 1,915 people were receiving the emergency cash supplement in June, up 56 percent from June 2009.

Eligibility for both programs is income-based, and being unemployed doesn’t automatically qualify an individual for either benefit. The assistance for the needy generally requires a much lower household income than food stamps, although determinations are made on a case-by-case basis.

Getting by, barely

The debate on Capitol Hill over unemployment benefits has centered largely on the cost, estimated to be $33 billion to fund the extensions through November. Democrats have so far resisted demands to offset the cost by cutting spending in other areas, calling the benefits emergency spending, while Republicans have so far objected to adding to the national deficit.

A secondary argument has been the effect of lengthy unemployment insurance extensions on job-hunting motivation, with some calling the benefits —” which average $325.53 a week before taxes in Illinois —” a disincentive to finding permanent work.

But Stillman Valley resident Teresa Hill, out of work since January 2009 after 20 years in construction, isn’t seeing many options. Hill got her last $410-a-week benefit five weeks ago and had been without income since.

She’s managed to get by with help from her family, but fears what’s to come.

—I’ve pretty much just been borrowing money and hoping something comes through,— she said. —I haven’t really seen any job offers opening up here.—

From the NY Times: Fears Grow as Millions Lose Jobless Benefits

CINCINNATI (Reuters) – Deborah Coleman lost her unemployment benefits in April, and now fears for millions of others if the Senate does not extend aid for the jobless.

“It’s too late for me now,” she said, fighting back tears at the Freestore Foodbank in the low-income Over-the-Rhine district near downtown Cincinnati. “But it will be terrible for the people who’ll lose their benefits if Congress does nothing.”

For nearly two years, Coleman says she has filed an average of 30 job applications a day, but remains jobless.

“People keep telling me there are jobs out there, but I haven’t been able to find them.”

Coleman, 58, a former manager at a telecommunications firm, said the only jobs she found were over the Ohio state line in Kentucky, but she cannot reach them because her car has been repossessed and there is no bus service to those areas.

After her $300 a week benefits ran out, Freestore Foodbank brokered emergency 90-day support in June for rent. Once that runs out, her future is uncertain.

“I’ve lost everything and I don’t know what will happen to me,” she said.

The recession — the worst U.S. downturn since the 1930s — has left some 8 million people like Coleman out of work.

Unemployment has remained stubbornly high at around 9.5 percent. According to the Bureau of Labor Statistics, in June 6.8 million people or 45.5 percent of the total are long-term unemployed, or jobless for 27 weeks or more…

Current Events, Perspective, Political, , , ,

Happening to real people

From the NY Post: Jobless and Broke 400 NYers a day see benefits expire

There’s one gone every 80 seconds.

That is, every day, 400 unemployed New York City residents exhaust their unemployment benefits, a study of state unemployment statistics by The Post reveals.

They’re among the 3.7 million out-of-work Americans who’ll be cut off from their average $400-a-week lifeline by the end of July.

“Every day I hear heart-wrenching stories from the unemployed who have exhausted their benefits and have no money to provide the very basics for their families,” said state Labor Commissioner Colleen Gardner. “Some have even lost their homes.”

One New Yorker with just a few months left before her $430 weekly checks stop says the stress takes a huge toll.

“It’s an emotional roller-coaster. . .not sleeping, a constant feeling of worthlessness,” said Sharon Angela Richie, 47, a former executive assistant at Cabrini Medical Center who lost her job more than a year ago when the hospital went bankrupt.

“I feel as if someday I’ll be homeless living in a box,” said Richie, who’s single and living with family members in Yonkers.

One Staten Island man who exhausted his checks just last month vowed he won’t take welfare to meet his $800 a month budget living in his small apartment. He’s already burned through most of his savings and credit cards.

“I’ll do whatever the hell I can to make it up,” said Richard Respler, 27, who was downsized from the back office of a major corporation — where he hopes to return someday. “I really don’t want welfare. I won’t do that.”

New Yorkers collect 99 weeks of unemployment benefits — including 73 weeks supplied by the state with federal aid. The House has voted to extend benefits but the Senate is resisting efforts to extend them beyond their already extended length.

As a last resort for aiding growing numbers of people hurt by exhausted benefits, New York State offers programs for food stamps, small stipends and other help.

“These programs are in place to help people left with nowhere else to turn,” said Anthony Farmer of the NYS Office of Temporary and Disability Assistance.

…and this video from CNN: Crunch Time for Jobless

Current Events, ,

Job Dislocation Brochure For Unemployed Workers – avoiding scams

The Financial Industry Regulatory Authority (FINRA) has developed unbiased financial advice for dislocated workers in a brochure that tells them how to protect themselves from investment fraud, avoid job scams and keep their finances on track during a period of unemployment.

Through an affiliation and partnership with NASWA, FINRA is printing up 300,000 copies of their brochure “Job Dislocation Making Smart Financial Choices after a Job Loss,” [NOTE: large pdf] and will ship between 2,000 to 8,000 copies of this brochure to every state free of charge to give out to the States’ unemployed citizens.

FINRA is the largest non-governmental regulator for all securities firms doing business in the US and oversees 4,700 brokerage firms covering 635,000 registered securities representatives. FINRA was created in 2007 through the consolidation of a number of organizations including components of the New York Stock Exchange.

The brochure includes specific advice for unemployed individuals on how to check the background of investment professionals and find information about potential job scams from FINRA, and the state and federal regulators as well as other consumer protection agencies. The brochure also outlines how to prepare financially for a period of unemployment, how to make decisions to preserve retirement funds and what steps to take to start the search for a new position once your company announces a planned layoff.

In addition NASWA recently asked FINRA to add and highlight in the brochure some key pieces of information and advice to UI claimants. Two specific items were added to page 3 of the brochure. One points out to UI Claimants that they are required to register with the state’s employment office to begin the job search process immediately upon filing their claim. The second item highlights that it is important to let their state Unemployment Insurance agency know as soon as they return to work to eliminate the potential of a possible overpayment on their UI Claim.

Current Events, ,

Avoid getting taken when unemployed

The following is based in part on On Point Technology’s BullsEye Newsletter article: “Work At Home” & Other Scams Aimed At Claimants

Often desperate for income, unemployed individuals are likely to become victims of one of the many “work at home” scams. Unemployed persons should be aware of these scams so as to avoid becoming victims, which results in their situations becoming even grimmer.

“Work at Home” scams can take many forms, among the most prevalent are:

  • Rebate processing
  • Stuffing envelopes
  • Mystery shopping
  • Craft kit assembly
  • Medical billing
  • E-mail processing
  • Typing at home
  • Data entry
  • Transferring funds and stashing money
  • Counterfeit documents
  • Contests of all kinds offering compensation and prizes

Some good advice is to:

  • Beware of offers that sound too good to be true. Including those that promise big bucks for little work or no experience.
  • Never pay a potential employer for hiring you. Legitimate employers do not ask for banking or credit card numbers in return for hiring.
  • Always research a potential employer’s background. Three resources that offer free background information on businesses and companies are: The Better Business Bureau, The Federal Trade Commission’s Bureau of Consumer Protection, Online bulletin boards such as scam.com provides information from individuals that know first-hand the unscrupulous tactics some companies use.

Also, unemployed persons should never use websites, other than official government websites, to file UI claims. Fraudulent websites have been charging unknowing individuals a fee in order to file a UI claim on their behalf.

Some of the websites pitch false hopes of being promised quicker service or assistance with a problem claim. To the contrary, if the claim actually ever gets filed at all it is more likely to delay the process, not hasten it.

The New York State Labor Department recently became aware of this scheme being perpetrated in their state. It is a scam that has been ongoing in a number of states over the last several years and unfortunately accelerated by the recession. New York Governor David Paterson summed it up best when he said, “The message here is clear, there is no cost to sign up for Unemployment Insurance Benefits. If you are told differently, then it’s a scam.”

Remember that non-government sites are not endorsed in any way by state governments. Users could very well become victims of identity theft in dealing with non-governmental sites promising assistance with unemployment insurance claims. Users of non-governmental sites may have a delay in receiving benefits or even jeopardize their eligibility to collect benefits.

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