Photo by ALYSON MORRIS
Lighthouse Project: Unemployment rate graphic.
TALLAHASSEE — Florida's improving unemployment rate may be good news for most people, but it will have a negative effect on many of the estimated 836,000 workers who remain jobless.
That's because Florida no longer qualifies for federal extended benefits because of its lower jobless rate, which is likely to reduce state benefits as well.
Those two factors are compounded by the impending expiration of federal emergency unemployment compensation at the end of the year.
Unless Congress extends the emergency benefits, the net effect could be a reduction in combined state and federal compensation, which once offered up to 99 weeks of benefits, to 20 weeks or less for Florida workers who lose their jobs in 2013 or beyond. Those currently drawing compensation or who apply before the end of this year are facing less drastic reductions.
The reductions in all three elements of Florida's unemployment compensation system are tied to the same thing, said Florida AFL-CIO legislative and political director Rich Templin.
"That is a failure of leadership in Washington and leadership in Tallahassee to deal with the real problem of unemployment, which is the chronic unemployment that we're seeing because of major economic shifts," Templin said.
Unemployment rates are falling in part because Florida's labor force is shrinking as long-term unemployed workers drop out of the system, Templin said.
The Florida Chamber of Commerce pushed for the state benefit reductions. The chamber's executive vice president, David Hart, said the falling unemployment rate shows Florida is making the right policy moves to create jobs and bring the state out of recession.
Federal extended benefits that provided up to 20 weeks of compensation will be cut off on May 12, state officials said. Florida lost eligibility for that funding when its March unemployment rate dropped to 9 percent.
Federal emergency unemployment compensation, which is due to expire at the end of 2012, once offered up to 53 weeks of benefits. Each week that goes back is one less week of benefits until they are completely cut off at the end of 2012.
Florida Department of Economic Opportunity spokeswoman Nancy Blum said her agency is sending letters about the end of extended benefits to those long-term jobless workers who currently qualify as well as those who soon would have become eligible after using up their other benefits. The department has estimated those two groups total about 44,000 claimants.
Maximum state benefits, which kick in first, already have been cut from 26 to 23 weeks. That's likely to be reduced again in 2013 under a new law linking time of compensation to the unemployment rate. The maximum benefit is 12 weeks if the jobless rate averages 5 percent or less in the third quarter of the prior year. For every half percentage point above 5 percent, a week of benefits is added until reaching the 23-week cap at 10.5 percent.
That means even if the 9 percent jobless rate recorded in March remains unchanged through the third quarter, the maximum benefit would drop to 20 weeks next year.
The new law was sought by business interests, and supported by Gov. Rick Scott, to reduce the cost of the compensation program and hold down taxes paid by employers to sustain it.
Those taxes have skyrocketed as jobless rates climbed in recent years. The state also borrowed from the federal government to keep the taxes from going even higher.
The new legislation also makes it more difficult for claimants to qualify for benefits and easier for employers to deny them for misconduct.
Templin said reducing benefits is counterproductive because state figures show every $1 paid out generates $1.65 in economic activity.
"Every unemployed worker who does not qualify for those lifeline benefits is a lost customer at the cash register," he said. "Every lost customer at the cash register is more jobs lost."
The Chamber of Commerce's Hart said the best remedy would be creating more jobs by cutting taxes and business regulations rather than paying employment benefits.
"We would all hope the customer coming into the store and contributing to the economy is doing so because they are fully employed," Hart said.
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Comments » 26
profiler writes:
One thing for sure: this gestapo police state will continue to victimize employers no matter what happens to the economy. I talked to a retired gestapo officer last week. He and his wife get FOURTEEN THOUSAND DOLLARS A MONTH retirement. Both of them were state gestapo agents. So..do you see how they were here to protect and serve? THEIR OWN INTERESTS! This GD nazi country will victimize private employers and citizens with crap like this. The retired gestapo agent LAUGHED when he told he that he and his wife have received SEVEN HUNDRED EIGHTY THOUSAND DOLLARS since they retired. They didn't pay in one dime. ALL of this is on taxpayers back. Go into the field...screw what is right and wrong...victimize people hiding behind a badge....spit on the constitution ...stomp on people..and get rewarded. If these two retired thugs die tomorrow will someone continue to get paid? If not..I kinda hope they expire..that will save taxpayers $168,000 A YEAR! Of course...these dooshbags are no different than any dooshbag politician. If you aren't smart enought to realize that we have a government of the government, by the government, for the government..please open your eyes. I have to admit that if I had a business NO WAY IN HELL would I pay anyone over the table and be a victim of this POS country. As a matter of fact I know a business in lee county that pays EVERY EMPLOYEE under the table...they dont have any employees LOL! They are making a fortune already but refuse to get fornicated by this POS nazi country. MORE POWER TO THEM.
REMEMBER>..when you serve on a jury..it doesnt matter what the person is accused of. If it boils down to someone getting fornicated by the police state..vote NOT GUILTY. FIJA.org. Turn this POS gestapo police state on its butt. If you see any gestapo agent or their family in need...let them die. THEY ARE YOUR ENEMY....the rule is now EVERY MAN FOR HIMSELF. TO HELL WITH THE UNITED NAZI STATES OF AMERIKA
TiredoftheBS writes:
Good. Since the liberals say, "We're easily in recovery". We don't need any federal money!
brianfl writes:
"The new legislation also makes it more difficult for claimants to qualify for benefits and easier for employers to deny them for misconduct."
So in other words we just pit more power to the big guy to crush the little guy when he loses his job. So I guess when someone gets laid off from their job when it gets slow all the employer has to say is "they were fired" or "they voluntary quit" so they can get out of paying unemployment? I know someone who had that happen to them
about 8 years ago. By the time he finally got his day in court 4 months later he was already in finacial ruin and left homeless. He did find work eventually but it was a nightmare for him when he was out of work. No matter how much trust you have in your employer to do the right thing, you can't trust them 100%.
Beachglow writes:
People will have to move to a more successful state. Texas is booming and has never gone through a recession. If I were in need of a job, I'd move there, especially Austin, Texas.
cornandbeans writes:
Starvation is a great motivation to work - any work, legal or illegal.
Dick Snot is a Fascist.
Captian_Cataracts writes:
WoW! Someone started the day wrong.
You better take a nap or by noon you'll be homicidal.
Ruger writes:
"Florida unemployment compensation being reduced"
"which is likely to reduce state benefits as well"
Likely?
furball writes:
Anyone collecting unemployment for 99 weeks should be taken to an island and left.
How much of a useless person could you be to collect for 99 weeks?
IMSufrin (Inactive) writes:
Wait Wait!!! Didn't you all read a couple stories up ... we are in RECOVERY!
unfatcat writes:
It is interesting that as we hear the skewed unemployment numbers from the Fed., it appears that Florida is now able to link unemployment benefit pay to unemployment numbers, giving further incentive for false reporting. Perhaps, this system should be based on the length that one has paid into unemployment insurance before losing a job. It isn't really fair to those who have been in the work force for 25 years, never receiving unemployment before; but, now, being unemployed, too old to start over, and too in debt to go to school at this age of life from housing nightmere.
Throat_Yogurt writes:
no more free handouts. get a job!
greathornedlizard writes:
let's face it, if you want your own 40 million dollar mansion you will have to put several thousand people out of their jobs and their homes.
bh1799 writes:
You REALLY need some meds and to move away, far away from the USA!
bh1799 writes:
So what is stopping you??
The Gov. there would love to get you....
felipe writes:
i read that the same way you did !!! it sucks that you work hard and if unemployed you are counting on unemployment compensation to help you out while trying to find work and they come up with a stupid plan like this to save money and they give all the power to the employer , which will mostly screw you !!! it stinks as far as i am concern , i do not like what i see here !!!
Davidh239 writes:
It is an election year. Of course it will be passed and extended. Our elected officials don't want to join the ranks of the unemployed.
cancel writes:
There's tens of thousands of good paying job positions available right now in N Dakota and the surrounding area. Avg wage is over 60k a year for a rookie.
Do you think that by subsidizing long term unemployment that we affect the natural economic flow for people to go where the jobs are?
Isn't it to everyone's benefit that people go to where the jobs are just as much as it's important that new jobs come here?
Maybe there should be more state to state communication and coordination when it comes to employment.
GT
profiler writes:
$18 an hour at mcdonalds in N dakoka...all the intelligent people are in the oil fields at $30 an hour. even the illegals dont want mcdonalds and their substandard pay loL!
cgbexec writes:
Seriously? This is what you’re going with? Someone that owns a $40 million dollar mansion is likely to be worth over $250 million. If you are worth $250 million plus, then you own a large corporation or several of them. The last time I checked, large corporations tend to employ hundreds and thousands of people directly and even more indirectly. Your comment wins the “ignorant comment of the day” award and I feel more stupid for having read it!
crayola writes:
You hear these conservative commentators screaming "class warfare" anytime anything is done to help the middle and working classes. All this legislation is class warfare by the haves against the have-nots. Citizens of this nation need to think about their own interest when election time rolls around and vote against every Republican currently in office. The rich like Rick Scott and Mitt Romney have no reservations about voting for legislation that gives themselves millions upon millions of dollars in tax breaks and other benefits that constitute the biggest welfare payouts in history but give out of work employees a few more weeks of unemployment benefits and they start screaming about re-distributing the wealth and class warfare. The only interest the Republican party represents is the wealthy and the corporate entities that brought about the Great Depression that continues to beset this once great nation.
bigcat21 writes:
Maybe because of Congressman Ron Paul?
John_Galt writes:
“I am for doing good to the poor, but...I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. I observed...that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.”
― Benjamin Franklin
Davidh239 writes:
I hope that you're still sober and stay that way. Good luck.
That being said, along the way you apparently lost your share of brain cells (unless you were being sarcastic).
FloridaVoter writes:
You're right. We need to strengthen the lower income folks and the middle class so that they have more confidence and spend more in our economy. A $40 million home purchase does not help anyone in that regard - this will not just trickle down. Wake up America!
We need large infrastructure improvements, which will create jobs, and the rich (i.e. Scotts, Romneys and Koch brothers of the world) will have to pony up their fair share of taxes to get it done.
This is not socialism - this is a healty society where everyone shares their fair burden.
The unemployed are not leeches upon our society. If they lose the little bit they have, we will have warfare in the streets. The rich are already getting their own security forces together to prepare against the evil masses whose demise they caused. We will be living in some third world country fenced off against the unfortunate who scrape by. (Or steal lawncare equipment to make a living - that was the other headline in the news.) But then we will just call them criminals and jail them ... in the privatized prisons that put more money into the hands of the rich. It's disgusting. And it is unAmerican.
lSTlLLSPEAKFORGOD writes:
We are in a recovery . Obama has brought this GREAT NATION back from the brink of disaster . Cant you see this ??? But florida red necks wouldn't know this !!
marcari writes:
If, indeed, what you say is correct, then the GOP is courting the 1%. If you were running for office why would you court the 1%? You would lose. Obviously there are Americans who still believe that if they work hard, take advantage of the opportunities a free country offers, they too, will succeed. Don't envy the rich; I'm not rich but I have enough to live what I consider to be a good life. And I don't care how much money the other guy makes.
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