August 19, 2009
Tens of thousands expected to fall off rolls by end of year
LANSING - Governor Jennifer M. Granholm today said news that Michigan's July unemployment rate stands at 15 percent - more than 6 percent higher than a year ago - is another stark reminder that Congress needs to pass legislation that will ensure jobless workers have the benefits they need. The governor is calling on Congress to authorize another extension of benefits and a continuation of extensions already in place. Some 100,000 unemployed Michigan workers expected to lose their unemployment benefits by the end of this year.
"Michigan remains ground zero for the nation's economic recession, and that makes help for unemployed workers a critical need," Granholm said. "While we may see some glimmers of hope for the economy, we know that our unemployed workers will continue to need unemployment benefits for themselves and their families until the economy fully recovers."
Michigan currently provides up to 79 weeks of unemployment insurance benefits - 26 weeks of state benefits, 33 weeks of federally-funded Emergency Unemployment Compensation (EUC), and 20 weeks of federally-funded extended benefits. Those receiving unemployment benefits are also collecting $25 a week in federal additional compensation (FAC), which is added to their unemployment benefit.
Currently, the EUC and FAC programs are scheduled to expire in December 2009.
"Tens of thousands of Michigan working men and women have been hit hard by the recession and need the current federal unemployment extensions to continue and for an additional extension to start," the governor said. "Many of our unemployed are already in their final weeks of unemployment benefits and face the gut-wrenching prospect of not having money to the pay the mortgage, buy food, or put gas in their cars."
Two bills have been introduced in Congress that would grant an additional 13 weeks of EUC benefits to states with high unemployment rates, such as Michigan. Both bills also would continue EUC, 100 percent federal funding for EB and FAC payments through 2010.
As the governor seeks additional help for the state's unemployed, she noted that the Unemployment Insurance Agency (UIA) has made some significant strides in helping unemployed workers to file for and collect those benefits.
In late 2008 and early 2009, the agency was hit with an unprecedented jump in unemployment claims, as initial claims for state benefits soared by 57 percent in December, by 76 percent in January, and by 111 percent in February. In January, the governor directed several state departments to work with the agency to expand the system so it could meet the rising demand for unemployment benefit services.
The governor pointed out that the agency is issuing unemployment benefits to some 450,000 unemployed workers, and from January 1 through July 31, the UIA has taken over two million phone calls from unemployed citizens and paid out over $4 billion in unemployment benefits.
Since January 1, 2009, UIA has:
- hired and trained approximately 500 additional employees, increasing UIA staffing by over 50 percent. The new staff is working at agency call centers and problem resolution offices (PROs).
- expanded hours of operation at agency call centers and PROs and opened a new call center in Lansing and temporary PROs in Detroit and Pontiac.
- continued mandatory overtime for most staff.
- increased capacity to accommodate rising Internet use of the Michigan Automated Response Voice Interactive Network (MARVIN) online.
- enhanced telephone capabilities allowing the UIA to take telephone-filed claims through its automated system 24-hours-a-day, six-days-a-week.
- launched "UI Tube" in June, which includes online and on-demand webcasts for both workers and employers.
- developed an online filing kit designed to make the unemployment claims process even more efficient and convenient.
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