The Dow rose 204 points today closing above 10,000 again on news that jobless claims fell by 20,000 to 512,000 and some people shopped a little. How is this a good sign? Since the data takes into account only those who are active on the rolls, the fact that unemployment benefits expire for 7,000 people each day and others have simply given up the search is tragically overlooked.
With regards to giving up the search, it is tempting to give up especially with all of the hours spent upon the task falling into a black hole. So much time and effort and absolutely nothing to show for it. Nevertheless, since you have to be in it to win it, jobseekers must soldier on. Sadly, the government is expected to announce tomorrow that the official jobless rate has risen to 9.9%.
Even though we have been told countless times that the unemployment rate will continue to climb through next year topping 10%, the record rise in the Dow, 4500 points in 8 months, and the bountiful bonuses on Wall Street juxtaposes badly. For Wall Street, a small drop in initial jobless claims, even though new claims have topped 500,000 on a weekly basis for the last year, is good news. For the most of us, cognitive dissonance abounds.
Showing posts with label Unemployment Benefits. Show all posts
Showing posts with label Unemployment Benefits. Show all posts
Thursday, November 5, 2009
Tuesday, October 27, 2009
Extended Unemployed Benefits Not For All
Many are welcoming the news that Congress is actively considering extending unemployment benefits for another 13 weeks, 20 in states where the unemployment rate is greater than 8.5%. While most people, including the newly unemployed, assume that extended benefits are available for all, that is simply not the case, at least in New York state. In fact, only those who filed for benefits before October 2008 are eligible for the full load of extended benefits, currently an additional 53 weeks (once they have exhausted the initial 26 weeks of regular benefits). And, having exhausted those 53 weeks, if they do so by the end of 2009, will be eligible for the new Federal extension should it be ratified.
What most of us don't know is that eligibility for extensions is based on when one filed for and began to collect benefits. These are the rest of the basic guidelines: Persons who claimed benefits between October 2008 and February 2009 are eligible for a maximum extension of 33 weeks; Persons who claimed between February 2009 and June 2009 are eligible for only a 20 week extension; And, if you filed after June 2009, you get the basic 26 weeks and that's it.
So, for those who believe (and they do!) that many unemployed people have simply given up looking for work, happy to ride the government gravy train because they have an almost unlimited pipeline of cash, are mistaken. They also fail to realize that the average weekly benefit in New York is about $300 of the maximum of $405. Anyone able to survive on $1200 a month when the average weekly paycheck is about $850? Hmmm? Most people I know cannot afford to be unemployed and believe me are not feeling happy about collecting such a paltry sum when their lives are based on a much higher salary.
I feel for the people who lost their jobs over a year ago now and have run out of benefits deperately waiting for the government to tide them over once again. But the real truth is that right after the New Year, a whole host of people who lost their jobs this Spring, when we experienced the massive bloodbath of layoffs, will run out of benefits for good. Will the government throw them a lifeline too?
What most of us don't know is that eligibility for extensions is based on when one filed for and began to collect benefits. These are the rest of the basic guidelines: Persons who claimed benefits between October 2008 and February 2009 are eligible for a maximum extension of 33 weeks; Persons who claimed between February 2009 and June 2009 are eligible for only a 20 week extension; And, if you filed after June 2009, you get the basic 26 weeks and that's it.
So, for those who believe (and they do!) that many unemployed people have simply given up looking for work, happy to ride the government gravy train because they have an almost unlimited pipeline of cash, are mistaken. They also fail to realize that the average weekly benefit in New York is about $300 of the maximum of $405. Anyone able to survive on $1200 a month when the average weekly paycheck is about $850? Hmmm? Most people I know cannot afford to be unemployed and believe me are not feeling happy about collecting such a paltry sum when their lives are based on a much higher salary.
I feel for the people who lost their jobs over a year ago now and have run out of benefits deperately waiting for the government to tide them over once again. But the real truth is that right after the New Year, a whole host of people who lost their jobs this Spring, when we experienced the massive bloodbath of layoffs, will run out of benefits for good. Will the government throw them a lifeline too?
Wednesday, June 3, 2009
Unemployment Takes Toll on American Dream
Mortgage delinquency rates and foreclosure rates are rising as the unemployment rolls swell. Another 500,000+ people lost their jobs in May. I can see how one's financial world can unravel so quickly especially here on Long Island. Housing is super expensive and the majority of it is classified single family - good old suburban glory at its finest. Unfortunately, if you are a homeowner, it will be downright difficult to survive a protracted unemployment if you are without adequate savings or adequate credit; though tapping credit during unemployment only compounds one's financial predicament. Unemployment benefits in NY are a maximum of $405 a week plus federal stimulus of additional $25 a week.
It is fairly obvious that the best and most effective way to cut expenses is to reduce one's housing expenses. Unfortunately, as of April 2009, the median home price is $350,000 for houses in contract and the median income is around $65,000 in Suffolk County and $85,000 in Nassau County. Property taxes are among the highest in the nation and average more than $7,000 per year. In addition, if one has to COBRA health insurance costs, even with the 65% subsidy, the average family plan will cost over $500 a month.
Those in rentals have more flexibility to downsize but homeowners, on the other hand are stuck with few alternatives. Many have put their homes up for sale but home sales are weak due to the economy and stricter lending standards. New buyers need at least 20% or $70,000 for a downpayment to purchase a home on Long Island at today's rates and it takes about 3 months just to close on a house in NY. Also, if you bought in the last five years, selling for even close to what is owed in mortgage is difficult; only those fortunate to have lived in their home long enough can "afford" to accept a cheap price to facilitate a fast sale.
Sadly, many homeowners are left with no alternative but to fall behind on their mortgage and as we can see this is happening in droves nationwide. Not everyone is a deadbeat, many are middle class Americans whose livelihood crashed along with the economy.
In the scheme of things, I certainly wouldn't mind moving to where the jobs are but what would I do with my house? In many cases, the American dream of home ownership becomes a nightmare the moment you lose your job. People are doing what they have to do to survive but for many, with ruined credit, depleted retirement savings and little left in available funds, it will be a long road back to personal financial recovery even if they do find a job.
It is fairly obvious that the best and most effective way to cut expenses is to reduce one's housing expenses. Unfortunately, as of April 2009, the median home price is $350,000 for houses in contract and the median income is around $65,000 in Suffolk County and $85,000 in Nassau County. Property taxes are among the highest in the nation and average more than $7,000 per year. In addition, if one has to COBRA health insurance costs, even with the 65% subsidy, the average family plan will cost over $500 a month.
Those in rentals have more flexibility to downsize but homeowners, on the other hand are stuck with few alternatives. Many have put their homes up for sale but home sales are weak due to the economy and stricter lending standards. New buyers need at least 20% or $70,000 for a downpayment to purchase a home on Long Island at today's rates and it takes about 3 months just to close on a house in NY. Also, if you bought in the last five years, selling for even close to what is owed in mortgage is difficult; only those fortunate to have lived in their home long enough can "afford" to accept a cheap price to facilitate a fast sale.
Sadly, many homeowners are left with no alternative but to fall behind on their mortgage and as we can see this is happening in droves nationwide. Not everyone is a deadbeat, many are middle class Americans whose livelihood crashed along with the economy.
In the scheme of things, I certainly wouldn't mind moving to where the jobs are but what would I do with my house? In many cases, the American dream of home ownership becomes a nightmare the moment you lose your job. People are doing what they have to do to survive but for many, with ruined credit, depleted retirement savings and little left in available funds, it will be a long road back to personal financial recovery even if they do find a job.
Thursday, May 7, 2009
Educational Assistance for the Unemployed
I am very pleased to announce that I am eligible for professional training certification courses at a local university courtesy of the Suffolk County Department of Labor. It turns out that many Counties in New York are offering educational training initiatives where they partner with local colleges and universities to provide free or reduced cost professional training to unemployed New Yorkers. I am thrilled to be a recipient of these funds allowing me to gain additional training in my field which will significantly improve my job prospects.
I have to say that I was pleasantly surprised to see the shear mass of available services for those who are unemployed in New York. The amount of job search resources is incredible. You don't need to guess and you certainly don't have to worry if you have no clue about what to do to find a job. It is all there, everything you need to know and then some. In addition there is a wide range of online training courses available in many disciplines including courses in every computer software imaginable.
Of course the availability of all this assistance does not diminish the fact that you are you unemployed and bringing in a fraction of what you used to earn. It also does not diminish the fact that I now fall into the category of being on the receiving end of government funds. We are all jaded when it comes to government handouts and the taxes required to fund them, until we actually need them for ourselves. We mercilessly pass judgment on those we believe are undeserving.
Should I be happy now that I will finally reap some of those benefits after so many years of being a productive member of society who has paid her fair share of taxes? Calamity does allow me to take advantage of programs where I would not normally be eligible for financial aid. Nevertheless I think it is fantastic because I need to improve my chances of being hired. It is unfortunate that these services are only available to those who are receiving unemployment assistance so those who are underemployed or those who do not qualify for benefits are left out.
Who am I when I accept services that I should have been able to pay for months ago? We all measure our self worth by the amount we are able to contribute to society; we scoff at those who become a burden on society. Nevertheless as more of us find ourselves joining the lines of the needy, we have no visual since much of the paperwork is done online or by telephone or other remote correspondence. During the Great Depression, people had to physically show up and stand on line, it made the situation appear even more dire but lest you be mistaken, things are even more dire now.
I have to say that I was pleasantly surprised to see the shear mass of available services for those who are unemployed in New York. The amount of job search resources is incredible. You don't need to guess and you certainly don't have to worry if you have no clue about what to do to find a job. It is all there, everything you need to know and then some. In addition there is a wide range of online training courses available in many disciplines including courses in every computer software imaginable.
Of course the availability of all this assistance does not diminish the fact that you are you unemployed and bringing in a fraction of what you used to earn. It also does not diminish the fact that I now fall into the category of being on the receiving end of government funds. We are all jaded when it comes to government handouts and the taxes required to fund them, until we actually need them for ourselves. We mercilessly pass judgment on those we believe are undeserving.
Should I be happy now that I will finally reap some of those benefits after so many years of being a productive member of society who has paid her fair share of taxes? Calamity does allow me to take advantage of programs where I would not normally be eligible for financial aid. Nevertheless I think it is fantastic because I need to improve my chances of being hired. It is unfortunate that these services are only available to those who are receiving unemployment assistance so those who are underemployed or those who do not qualify for benefits are left out.
Who am I when I accept services that I should have been able to pay for months ago? We all measure our self worth by the amount we are able to contribute to society; we scoff at those who become a burden on society. Nevertheless as more of us find ourselves joining the lines of the needy, we have no visual since much of the paperwork is done online or by telephone or other remote correspondence. During the Great Depression, people had to physically show up and stand on line, it made the situation appear even more dire but lest you be mistaken, things are even more dire now.
Wednesday, May 6, 2009
Housing Market on Long Island Still Depressed
Today I heard some disturbing news about the state of the housing market on Long Island. There is now a 31 month supply of homes on the market; over 35,000 homes for sale. In the last 6 months a little over 1000 homes were sold. Now that prices are declining, there are more interested buyers, but declining values will put more of those new home buyers of the last 2 or 3 years underwater where the amount owed on their mortgage is greater than the market price of the home. It may also put many of those who tapped their home equity based on peak market values underwater as well.
While there may be glimmers of hope in some pockets of this turbulent economy, the reality is that homeowners in Long Island and downstate New York are in trouble. Sadly, due to the high cost of living in this region, those homeowners who are laid off, underemployed, or whose wages have been reduced for any reason barely stand a chance of survival for very long unless they have ample savings. Many of those home buyers of the last 2 or 3 years were financially stretched when they purchased the home in the first place. But, they feared missing out on the opportunity to own a home when prices started to skyrocket putting any chance of home ownership out of reach for much of the middle class. Now, that home is a financial burden in itself.
Unfortunately, the financial safety nets that cheap money provided such as the ability to tap home equity if one needed extra funds or the ability to pick up another credit card on the fly, if times got a little tight, are gone. What will the homeowner turn to when he or she needs to make ends meet? We are facing a lot more foreclosures on the Island and a lot more desperate homeowners in New York.
Bold action is always recommended, even desired, but rarely ever implemented. So it may very well be that we will watch, defiantly, as Long Island and even New York State continue their downward spirals while everyone else is finding their way out.
Meanwhile, Albany is behaving as usual, jacking up the budget by $10,000,000,000 over last year, making underhanded funding deals with the MTA, granting all unions basically a stay of financial execution and a myriad of other deplorable financial conduct in a state that ranks in the top 3 for the highest taxes and cost of living nationwide and where taxes associated with Wall Street account for 20% of the state budget and we know how well they are doing. Long Island suffers from the same pigheadedness that New Yorkers do, too big, too important, too powerful to fail.
What to do? Though Long Island is an aging suburb, it has the benefit of a desirable location and has plenty of options that it refuses to accept. Long Island could minimize its downward spiral simply by implementing a few of the recommendations proffered by the Island's best economic minds, Chief Economist Pearl Kamer, Martin Cantor, Director, Long Island Economic and Social Policy Institute at Dowling College and Irwin Kellner, Distinguished Scholar of Economics, and the Rauch Foundation's excellent economic overview, Long Island Index. Taken together they have researched, reviewed and recommended viable solutions that will help Long Island regain its financial footing.
Bold action is always recommended, even desired, but rarely ever implemented. So it may very well be that we will watch, defiantly, as Long Island and even New York State continue their downward spirals while everyone else is finding their way out.
Tuesday, May 5, 2009
Unemployment
Tomorrow, I have a meeting with the department of labor (NYDOL). It seems that I will qualify for some unemployment benefits after all. Whoohoo! When you have a big fat zero coming in, anything is better than nothing and of course I am extremely grateful for it. Except...
Well, I was listening to the radio the other day. Actually, I listen to the radio every day in my car. I only listen to public radio stations in the car, nothing else, so it is either classical music or NPR programming, my trusted news source. Ask my kids. Sometimes they are not amused but I do see them tuning in against their will so there is hope that they will actually respond to music and information that challenges their minds. Anyhow, since I am old enough to know practically every song on most popular radio stations, I own the records - yeah vinyl - I do not need radio stations to over-play and kill the music that I love. Also, I find the children want to listen to dreadful pop radio notorious for playing the same 5 songs all day that I wake up in the morning with these songs in my head (umbrella ella ella ella...). Not to mention that I have heard many of these "new" songs before because most are re-dos of old songs I grew up with. The children are always shocked that I know the tune and/or the words. Sadly, I have to tell them that there is very little music that they listen to that is original.
Anyway, since I live in Suffolk County, Connecticut is geographically closer than New York City so I pick up their public radio station as well. During one of their news stories they discussed unemployment benefits in CT and it turns out that the maximum unemployment benefit in CT is $519 versus $405 in NY. In addition, they get $15 per dependent child. Well you know what I was thinking. What the heck, if I knew that, we should have moved to Connecticut. Well? It is something to ponder isn't it? You know I worked out the numbers quickly, that is a whopping $576 per month more than in NY providing you get the maximum benefit and have two children. That is quite a bit of extra moulah. Perhaps this info should be added to the relocation checklist alongside the other quality of life markers such as school district stats, property tax rates and community amenities. Of course, we ruled out moving to CT for the same reason we ruled out NJ, we are New Yorkers, good, bad and indifferent.
All kidding aside, I am looking forward to my meeting in NY. I am happy to jump through any hoop right about now for a few extra bucks, every little bit counts.
Well, I was listening to the radio the other day. Actually, I listen to the radio every day in my car. I only listen to public radio stations in the car, nothing else, so it is either classical music or NPR programming, my trusted news source. Ask my kids. Sometimes they are not amused but I do see them tuning in against their will so there is hope that they will actually respond to music and information that challenges their minds. Anyhow, since I am old enough to know practically every song on most popular radio stations, I own the records - yeah vinyl - I do not need radio stations to over-play and kill the music that I love. Also, I find the children want to listen to dreadful pop radio notorious for playing the same 5 songs all day that I wake up in the morning with these songs in my head (umbrella ella ella ella...). Not to mention that I have heard many of these "new" songs before because most are re-dos of old songs I grew up with. The children are always shocked that I know the tune and/or the words. Sadly, I have to tell them that there is very little music that they listen to that is original.
Anyway, since I live in Suffolk County, Connecticut is geographically closer than New York City so I pick up their public radio station as well. During one of their news stories they discussed unemployment benefits in CT and it turns out that the maximum unemployment benefit in CT is $519 versus $405 in NY. In addition, they get $15 per dependent child. Well you know what I was thinking. What the heck, if I knew that, we should have moved to Connecticut. Well? It is something to ponder isn't it? You know I worked out the numbers quickly, that is a whopping $576 per month more than in NY providing you get the maximum benefit and have two children. That is quite a bit of extra moulah. Perhaps this info should be added to the relocation checklist alongside the other quality of life markers such as school district stats, property tax rates and community amenities. Of course, we ruled out moving to CT for the same reason we ruled out NJ, we are New Yorkers, good, bad and indifferent.
All kidding aside, I am looking forward to my meeting in NY. I am happy to jump through any hoop right about now for a few extra bucks, every little bit counts.
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