In April, Illinois shed another 24,500 jobs, driving the state's
unemployment rate up to 9.4 percent. That's over three percent higher
than just one year ago and exceeds the national average, according to data released last week by the Illinois Department of Employment ...
In April, Illinois shed another 24,500 jobs, driving the state's unemployment rate up to 9.4 percent. That's over three percent higher than just one year ago and exceeds the national average, according to data released last week by the Illinois Department of Employment Security. Here's our updated graph comparing the two:
With the state unemployment rate skyrocketing, Illinois qualified in April for the Unemployment Extended Benefits (UEB) program. Specifically, the state's Insured Unemployment Rate (IUR) -- determined by taking the number of workers receiving unemployment benefits in a given state over the past 13 weeks and dividing it by the total number of employed workers -- rose to 5.13 percent, triggering a 13-week extension. (It's now at 5.47 percent.) Because President Obama's recovery package temporarily shifted (PDF) the full costs of UEB program onto the federal government's books, it means the Illinois state government will bear only the administrative cost of providing additional benefits to those who have exhausted their initial benefits but are undergoing a "sustained and systemic" job search.
As we've noted previously, there is even more federally-funded assistance available. However, lawmakers still need to pass legislation to enable the state to take advantage of these resources.
If Illinois' Total Unemployment Rate (TUR) exceeds both 8.0 percent for three consecutive months and 110 percent of the jobless rate during the same period in either of the previous two years, the state can trigger an additional 7 weeks (on top of the 13 already alotted). But as the National Employment Law Project (NELP) has consistently pointed out, obtaining those resources requires the modification of state law. Illinois' three-month TUR average is a healthy 8.5 percent and rising, but lawmakers have yet to make the appropriate legislative modifications.
Tim Drea, secretary-treasurer of the Illinois AFL-CIO, told us today that state labor unions, the business community, and lawmakers have agreed on legislation that would solve the problem. The language -- which comes in the form of an amendment to HB 1350 -- changes state law to enable the expanded benefits, extends eligibility to those who leave their job voluntarily for extenuating personal or family reasons (i.e. sexual abuse, sposal relocation), and also establishes a $15 allowance for all dependents of unemployment filers. Drea couldn't guarantee that the bill will fly through the two chambers, but said he was "pretty confident" it would be dealt with before lawmakers leave town at the end of the week.
With Illinois seven weeks into its IUR extension already, there should be some urgency to advance HB 1350. According to Christine Riordan, a NELP policy analyst, an estimated 33,402 workers across the state exhausted their benefits in March and April. Thanks to the 13-week extension, they will be covered at least through June. If the enabling legislation is not passed before the session ends, there may not be another opportunity to amend the law until legislators reconvene in the fall. By then, the need will have grown significantly. Indeed, Riordan says 102,495 Illinoisans will have run out their benefits by December.
UPDATE (6/29): Both legislative chambers passed Senate Bill 1350 last month, which modifies state law to trigger an additional 7 weeks of extended benefits (on top of the 13 already triggered in April). On June 26, it was sent to Gov. Pat Quinn's desk. He has 60 days to sign it into law.
UPDATE (8/26): We've created an open thread for readers to learn about the unemployment insurance process and discuss any questions or advice they have. Follow the link here.
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