SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
A person files an application for unemployment benefits on April 16, 2020, in Arlington, Virginia. (Photo by Olivier Douliery/AFP/Getty Images)
Thanks to 'System Set Up to Fail,' Study Shows Number of Unemployed in US Likely Far Higher Than Reported
"It was made complicated so people would get discouraged and give up."
Apr 28, 2020
The U.S. economic fallout from the coronavirus outbreak might be far worse than already reported according to a new study that claims unemployment numbers across the country may be a third higher than previously reported due to archaic and faulty benefit infrastructure that has kept an estimated up to 12.2 million Americans from filing claims.
"This study validates the anecdotes and news reports we're seeing about people having trouble filing for benefits they need and deserve," the Economic Policy Institute's Ben Zipperer told Reuters of the results.
Zipperer, the lead author of the study, cited survey results from around the country showing decaying digital infrastructure and hard to follow rules in state after state have kept millions from filing claims for unemployment.
"The results are horrifying," EPI director of Policy Heidi Shierholz tweeted of the survey.
As Zipperer and co-author Elise Gould wrote:
For every 10 people who said they successfully filed for unemployment benefits during the previous four weeks:
- Three to four additional people tried to apply but could not get through the system to make a claim.
- Two additional people did not try to apply because it was too difficult to do so.
These findings imply the official count of unemployment insurance claims likely drastically understates the extent of employment reductions and the need for economic relief during the coronavirus crisis.
By EPI's estimates, the survey results reflect between 7.8 to 12.2 million people--and possibly up to 8.9-13.9 million people--who have not been able to file for benefits but who have tried to unsuccessfully.
According to the report:
All told, additional 7.8 to 12.2 million people could have applied for benefits had the process been easier. This estimate is conservative, because some of the 1.6% of respondents (3.7 million people) who tried to apply but were rejected may have had their applications rejected because states were unable to process applicants with expanded eligibility under the CARES Act, such as newly covered self-employed workers. When we extrapolate our survey findings to the full five weeks of UI claims since March 15, we estimate that 8.9-13.9 million people could have filed for benefits had the process been easier.
In its report on the survey results, Reuters spoke to Orlando-based worker Jim Hewes. Hewes, now out of work, has found it impossible to file for benefits due to Florida's archaic and unworkable system.
"It's almost set up to fail," said Hewes. "It was made complicated so people would get discouraged and give up."
Florida has rejected thousands of claims for ineligibility based on "arbitrary" rules, State Senator Jose Javier Rodriguez, a Democrat representing the Miami area, told Fox 35 Orlando.
Rachel Alvarez of Naples told Reuters that she had exhausted her savings but that the state's unemployment rules were barring her from relief, leaving the 44-year-old restaurant server with limited resources with which to care for her three children.
"I have nothing," said Alvarez. "As much as I don't want my kids to see me stress out, each one has seen me cry."
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
The U.S. economic fallout from the coronavirus outbreak might be far worse than already reported according to a new study that claims unemployment numbers across the country may be a third higher than previously reported due to archaic and faulty benefit infrastructure that has kept an estimated up to 12.2 million Americans from filing claims.
"This study validates the anecdotes and news reports we're seeing about people having trouble filing for benefits they need and deserve," the Economic Policy Institute's Ben Zipperer told Reuters of the results.
Zipperer, the lead author of the study, cited survey results from around the country showing decaying digital infrastructure and hard to follow rules in state after state have kept millions from filing claims for unemployment.
"The results are horrifying," EPI director of Policy Heidi Shierholz tweeted of the survey.
As Zipperer and co-author Elise Gould wrote:
For every 10 people who said they successfully filed for unemployment benefits during the previous four weeks:
- Three to four additional people tried to apply but could not get through the system to make a claim.
- Two additional people did not try to apply because it was too difficult to do so.
These findings imply the official count of unemployment insurance claims likely drastically understates the extent of employment reductions and the need for economic relief during the coronavirus crisis.
By EPI's estimates, the survey results reflect between 7.8 to 12.2 million people--and possibly up to 8.9-13.9 million people--who have not been able to file for benefits but who have tried to unsuccessfully.
According to the report:
All told, additional 7.8 to 12.2 million people could have applied for benefits had the process been easier. This estimate is conservative, because some of the 1.6% of respondents (3.7 million people) who tried to apply but were rejected may have had their applications rejected because states were unable to process applicants with expanded eligibility under the CARES Act, such as newly covered self-employed workers. When we extrapolate our survey findings to the full five weeks of UI claims since March 15, we estimate that 8.9-13.9 million people could have filed for benefits had the process been easier.
In its report on the survey results, Reuters spoke to Orlando-based worker Jim Hewes. Hewes, now out of work, has found it impossible to file for benefits due to Florida's archaic and unworkable system.
"It's almost set up to fail," said Hewes. "It was made complicated so people would get discouraged and give up."
Florida has rejected thousands of claims for ineligibility based on "arbitrary" rules, State Senator Jose Javier Rodriguez, a Democrat representing the Miami area, told Fox 35 Orlando.
Rachel Alvarez of Naples told Reuters that she had exhausted her savings but that the state's unemployment rules were barring her from relief, leaving the 44-year-old restaurant server with limited resources with which to care for her three children.
"I have nothing," said Alvarez. "As much as I don't want my kids to see me stress out, each one has seen me cry."
The U.S. economic fallout from the coronavirus outbreak might be far worse than already reported according to a new study that claims unemployment numbers across the country may be a third higher than previously reported due to archaic and faulty benefit infrastructure that has kept an estimated up to 12.2 million Americans from filing claims.
"This study validates the anecdotes and news reports we're seeing about people having trouble filing for benefits they need and deserve," the Economic Policy Institute's Ben Zipperer told Reuters of the results.
Zipperer, the lead author of the study, cited survey results from around the country showing decaying digital infrastructure and hard to follow rules in state after state have kept millions from filing claims for unemployment.
"The results are horrifying," EPI director of Policy Heidi Shierholz tweeted of the survey.
As Zipperer and co-author Elise Gould wrote:
For every 10 people who said they successfully filed for unemployment benefits during the previous four weeks:
- Three to four additional people tried to apply but could not get through the system to make a claim.
- Two additional people did not try to apply because it was too difficult to do so.
These findings imply the official count of unemployment insurance claims likely drastically understates the extent of employment reductions and the need for economic relief during the coronavirus crisis.
By EPI's estimates, the survey results reflect between 7.8 to 12.2 million people--and possibly up to 8.9-13.9 million people--who have not been able to file for benefits but who have tried to unsuccessfully.
According to the report:
All told, additional 7.8 to 12.2 million people could have applied for benefits had the process been easier. This estimate is conservative, because some of the 1.6% of respondents (3.7 million people) who tried to apply but were rejected may have had their applications rejected because states were unable to process applicants with expanded eligibility under the CARES Act, such as newly covered self-employed workers. When we extrapolate our survey findings to the full five weeks of UI claims since March 15, we estimate that 8.9-13.9 million people could have filed for benefits had the process been easier.
In its report on the survey results, Reuters spoke to Orlando-based worker Jim Hewes. Hewes, now out of work, has found it impossible to file for benefits due to Florida's archaic and unworkable system.
"It's almost set up to fail," said Hewes. "It was made complicated so people would get discouraged and give up."
Florida has rejected thousands of claims for ineligibility based on "arbitrary" rules, State Senator Jose Javier Rodriguez, a Democrat representing the Miami area, told Fox 35 Orlando.
Rachel Alvarez of Naples told Reuters that she had exhausted her savings but that the state's unemployment rules were barring her from relief, leaving the 44-year-old restaurant server with limited resources with which to care for her three children.
"I have nothing," said Alvarez. "As much as I don't want my kids to see me stress out, each one has seen me cry."
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.