Tags: Billions | Unemployment | Benefits | Error

WSJ: Billions in Unemployment Benefits Doled Out in Error

Thursday, 15 Sep 2011 08:21 AM

Some $19 billion in state unemployment benefits were paid in error in three years ending in June, the Wall Street Journal reports, citing Labor Department data.

Many improper benefits were paid to recipients after they returned to work.

Other errors included employers or their administrators failing to submit timely or accurate information about worker separations or recipients who didn't correctly register with a state’s employment-service organization.

The Labor Department is working to crack down on inefficiencies in the system, especially in Virginia, Indiana, Colorado, Washington, Louisiana and Arizona.

"The Unemployment Insurance system is a unique partnership between the federal government and the states. States bear the responsibility of operating an efficient and effective benefits program, but as partners the federal government must be able to hold them accountable for doing so," says Labor Secretary Hilda Solis.

Indiana had the highest error rate, with improper payments accounting for more than 43 percent of the total amount paid.

State officials, however, blame methodology in part for that figure.

"To characterize it as waste, fraud and abuse is just manipulative," says Mark Everson, commissioner of the Indiana Department of Workforce Development.

President Barack Obama's $447 billion jobs program aims to put people back to work.

The plan calls for extending the deadline to file for federal extended jobless benefits and creates a $4,000 tax credit for hiring the long-term unemployed, among other measures.

One advocacy group, the National Employment Law Project, supports extending unemployment insurance for another year but opposes calls for using benefits for training programs.

"If you want to subsidize workers' wages, don't do it with unemployment benefits," says Maurice Emsellem, the group's policy co-director, according to CNNMoney.

"It's an insurance program that's there to help workers who are unemployed."

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Some $19 billion in state unemployment benefits were paid in error in three years ending in June, the Wall Street Journal reports, citing Labor Department data. Many improper benefits were paid to recipients after they returned to work. Other errors included employers or...
Billions,Unemployment,Benefits,Error
289
2011-21-15
Thursday, 15 Sep 2011 08:21 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved