Some 45,000 Pennsylvanians will continue to receive 13 weeks of emergency jobless benefits from the federal government. Governor Tom Corbett has signed unemployment compensation reform legislation that was required in order to continue the emergency benefits. The measure also ensures that an estimated 90,000 other unemployed Pennsylvanians will qualify for the extra 13 weeks of benefits. The signing came just hours after the Senate passed the legislation. The House approved it Thursday.
The changes are expected to save the state about $117 million by limiting future increases in the maximum weekly payments. Another change requires individuals to actively seek employment as a condition of receiving benefits.
Showing posts with label unemployment. Show all posts
Showing posts with label unemployment. Show all posts
Saturday, June 18, 2011
Friday, June 17, 2011
Benefits Preserved, Unemployment Comp Reform Passed
State government can move quickly, when it wants to.
This morning, the Senate gaveled into session and took care of a few housekeeping notes. The chamber then recessed for a Rules Committee meeting, where, with no debate, the panel approved Senate Bill 1030 on a 14-0 vote. Once the full Senate reconvened, a few lawmakers praised the unemployment compensation reform bill, and the chamber voted unanimously to send it to Governor Corbett’s desk. And just like that, at the last possible moment, lawmakers avoided halting unemployment checks for 45,000 people.
Governor Corbett will sign the measure “as soon as he gets it,” according to his spokesman, Kevin Harley.
In addition to freezing future benefits and requiring people to actively look for work, while receiving benefits, the new law will institute a “work-share” program, which will allow companies to avoid mass layoffs. This is something Democrats and labor leaders have wanted for years. Instead of laying off workers, companies “could reduce the hours for their employees on a voluntary basis, employer and employees, or employer and unions, by 20 percent, and allow the individuals to collect a partial unemployment,” explained Republican sponsor John Gordner. “So that they would not be out in regard to amount of monies, but rather than be laid off, they could continue to work, which is of benefit to the employer and employee.”
The new law is the first overhaul of Pennsylvania’s unemployment compensation system since 1988, and will save an estimated $114 million a year. That still won’t solve Pennsylvania’s long-term problems – the state’s fund has been bankrupt since early 2009, leading to a more than $3 billion loan from Washington, DC – but lawmakers on both sides of the aisle hailed it as a substantial reform.
This morning, the Senate gaveled into session and took care of a few housekeeping notes. The chamber then recessed for a Rules Committee meeting, where, with no debate, the panel approved Senate Bill 1030 on a 14-0 vote. Once the full Senate reconvened, a few lawmakers praised the unemployment compensation reform bill, and the chamber voted unanimously to send it to Governor Corbett’s desk. And just like that, at the last possible moment, lawmakers avoided halting unemployment checks for 45,000 people.
Governor Corbett will sign the measure “as soon as he gets it,” according to his spokesman, Kevin Harley.
In addition to freezing future benefits and requiring people to actively look for work, while receiving benefits, the new law will institute a “work-share” program, which will allow companies to avoid mass layoffs. This is something Democrats and labor leaders have wanted for years. Instead of laying off workers, companies “could reduce the hours for their employees on a voluntary basis, employer and employees, or employer and unions, by 20 percent, and allow the individuals to collect a partial unemployment,” explained Republican sponsor John Gordner. “So that they would not be out in regard to amount of monies, but rather than be laid off, they could continue to work, which is of benefit to the employer and employee.”
The new law is the first overhaul of Pennsylvania’s unemployment compensation system since 1988, and will save an estimated $114 million a year. That still won’t solve Pennsylvania’s long-term problems – the state’s fund has been bankrupt since early 2009, leading to a more than $3 billion loan from Washington, DC – but lawmakers on both sides of the aisle hailed it as a substantial reform.
Thursday, June 16, 2011
PA Unemployment Falls a Notch
Although the state’s unemployment rate dropped only slightly from April to May, the number of jobless Pennsylvanians has decreased 1.3% from this time last year.
In what Department of Labor & Industry spokesman Christopher Manlove calls a “mixed bag” of statistics, resident employment fell by 6,000, but the number of unemployed residents was also down by 7,000 over the past month. The unemployment rate slid .1%, to 7.4%.
Manlove says nine of the eleven job “supersectors” have gained jobs over the past year, but eight of them lost ground from April to May. However, he says it’s important to consider that fact in a broader context.
“The decrease in May jobs followed an April increase of 23,900, and that was the second-largest gain in Pennsylvania jobs since 1997,” says Manlove. “So when you see that kind of very large increase followed by a considerable decrease, it could be that it’s due to a shifting seasonal pattern.”
But the Keystone Research Center says the loss of 14,000 jobs in May "raises serious concerns" about a renewed weakness in the economy, both nationally and on a state level.
"With unemployment still high and economic growth slow going, the economic climate in Pennsylvania is translating into severe hardship for tens of thousands of unemployed and underemployed workers across the state," says KRC Labor Economist Mark Price.
Price says state lawmakers should "tap all available revenues" to limit budget cuts and save state-funded jobs.
The Government supersector has experienced the largest yearly drop, losing 33,100 jobs since May 2010. The only other division to experience a yearly decline was Financial Activities (comprising real estate, banking, and insurance jobs); that supersector lost just 100 jobs.
Manlove says the Mining & Logging division continued to gain jobs, making it the fastest-growing sector in the state. He says that is due in large part to Marcellus Shale-related industries.
In what Department of Labor & Industry spokesman Christopher Manlove calls a “mixed bag” of statistics, resident employment fell by 6,000, but the number of unemployed residents was also down by 7,000 over the past month. The unemployment rate slid .1%, to 7.4%.
Manlove says nine of the eleven job “supersectors” have gained jobs over the past year, but eight of them lost ground from April to May. However, he says it’s important to consider that fact in a broader context.
“The decrease in May jobs followed an April increase of 23,900, and that was the second-largest gain in Pennsylvania jobs since 1997,” says Manlove. “So when you see that kind of very large increase followed by a considerable decrease, it could be that it’s due to a shifting seasonal pattern.”
But the Keystone Research Center says the loss of 14,000 jobs in May "raises serious concerns" about a renewed weakness in the economy, both nationally and on a state level.
"With unemployment still high and economic growth slow going, the economic climate in Pennsylvania is translating into severe hardship for tens of thousands of unemployed and underemployed workers across the state," says KRC Labor Economist Mark Price.
Price says state lawmakers should "tap all available revenues" to limit budget cuts and save state-funded jobs.
The Government supersector has experienced the largest yearly drop, losing 33,100 jobs since May 2010. The only other division to experience a yearly decline was Financial Activities (comprising real estate, banking, and insurance jobs); that supersector lost just 100 jobs.
Manlove says the Mining & Logging division continued to gain jobs, making it the fastest-growing sector in the state. He says that is due in large part to Marcellus Shale-related industries.
Jobless Benefits Measure Moves Forward
State lawmakers have reached a compromise on an unemployment compensation reform bill, setting the stage for legislation to reach Governor Tom Corbett’s desk in the nick of time.
Federal guidelines – and the fact Pennsylvania has borrowed more than $3 billion from Washington since 2009, to pay out benefits -- require a change to state laws by Saturday. Otherwise extended benefits would disappear for 45,000 people. (The deadline actually passed last weekend, but legislators realized they had an extra week to pass the bill, due to a lag in paperwork processing at the Department of Labor and Industry.)
The House had been expected to vote on a measure saving $147 million in annual costs earlier this week. But when Monday and Tuesday went by without a vote, it was clear the Republican caucus had splintered on the measure, and GOP leaders didn’t have enough votes to pass it.
The new language, crafted with the support of Democrats, would save about $114 million a year by freezing and delaying maximum weekly benefits, among other changes. That’s substantially less than the $630 million dollar decrease House Republicans had pushed for earlier this month, and about $25 million below last week’s first compromise, which was amended into a Senate unemployment bill. Majority Leader Mike Turzai still tried to frame the deal as a win, though, saying, “It is the most extensive unemployment compensation reform package that we have seen – it’s the only unemployment compensation reform package that we’ve seen in ten years. And there are significant reforms that are being brought to the table. “
The new language requires unemployment recipients to actively look for a job, and would offset benefits for people earning more than $17,000. (That’s a higher ceiling than the amended Senate bill, which would have begun offsetting benefits at $11,000.) The legislation drops language restricting benefits for people who are fired, which had become a point of contention for Senate Republicans, Democrats and labor interests.
“Well, look. We’re happy that we were able to work a compromise,” said Democratic Minority Leader Frank Dermody, reflecting on the fact the House has gone from considering a $630 million cut to the current $114 million savings measure. “We’re happy we were able to stick together with 91 Democrats and almost 30 – at the time of 2nd consideration – Republicans,” he added, referencing the broader Republican bill’s failure on a preliminary vote. “But it was the right thing to do. That money was not coming from businesses or any place else. It was coming from unemployed workers.”
Federal guidelines – and the fact Pennsylvania has borrowed more than $3 billion from Washington since 2009, to pay out benefits -- require a change to state laws by Saturday. Otherwise extended benefits would disappear for 45,000 people. (The deadline actually passed last weekend, but legislators realized they had an extra week to pass the bill, due to a lag in paperwork processing at the Department of Labor and Industry.)
The House had been expected to vote on a measure saving $147 million in annual costs earlier this week. But when Monday and Tuesday went by without a vote, it was clear the Republican caucus had splintered on the measure, and GOP leaders didn’t have enough votes to pass it.
The new language, crafted with the support of Democrats, would save about $114 million a year by freezing and delaying maximum weekly benefits, among other changes. That’s substantially less than the $630 million dollar decrease House Republicans had pushed for earlier this month, and about $25 million below last week’s first compromise, which was amended into a Senate unemployment bill. Majority Leader Mike Turzai still tried to frame the deal as a win, though, saying, “It is the most extensive unemployment compensation reform package that we have seen – it’s the only unemployment compensation reform package that we’ve seen in ten years. And there are significant reforms that are being brought to the table. “
The new language requires unemployment recipients to actively look for a job, and would offset benefits for people earning more than $17,000. (That’s a higher ceiling than the amended Senate bill, which would have begun offsetting benefits at $11,000.) The legislation drops language restricting benefits for people who are fired, which had become a point of contention for Senate Republicans, Democrats and labor interests.
“Well, look. We’re happy that we were able to work a compromise,” said Democratic Minority Leader Frank Dermody, reflecting on the fact the House has gone from considering a $630 million cut to the current $114 million savings measure. “We’re happy we were able to stick together with 91 Democrats and almost 30 – at the time of 2nd consideration – Republicans,” he added, referencing the broader Republican bill’s failure on a preliminary vote. “But it was the right thing to do. That money was not coming from businesses or any place else. It was coming from unemployed workers.”
Friday, June 10, 2011
Lawmakers To Vote Next Week On Jobless Benefits Bill
Saturday’s federal deadline for Pennsylvania to pass an unemployment compensation reform bill will come and pass without a new law on the books.
Pennsylvania has been borrowing federal money to pay out benefits since 2009, and now owes nearly $4 billion to Washington. If the state doesn’t implement new changes by the 11th, extended unemployment benefits funded by federal money will evaporate for 45,000 people.
However, lawmakers have figured out they actually have until June 17th, due to paperwork processing delays at the Department of Labor and Industry. So, like a college student typing out a last-minute term paper they’re taking advantage of the extra time, and won’t vote until next week.
House Republican spokesman Steve Miskin chalked the delay up to the legislative process. “Two chambers, 253 members, there’s clearly just differences of opinion,” he said.
House and Senate Republicans are, for the most part, on the same page with the new compromise legislation, which would trim $147 million in annual costs, and require recipients to actively look for work, among other changes. The new language was inserted into the bill this week by the House Labor and Industry Committee, and is now in front of the full chamber.
Senate Republican John Gordner, who’s leading negotiations on the issue for his caucus, said he doesn’t like provisions of the House bill that deal with “willful misconduct” and “voluntary quit” issues, which essentially dictate what benefits a person is eligible for after he or she voluntarily leaves a job. Gordner said the Senate will make additional changes, if the current language stays in the bill. That would delay the process and likely extend it beyond June 17th, but Miskin said House Republicans won’t back down. “We don’t feel there’s any reason for any contention,” he said. “40 other states have the same standard. Labor in the other states seem to be fine with it, and people aren’t being deprived of their rightful benefits. So we’re not sure what any issue is. It’s reasonable, and it’s common sense.”
A House vote will likely come Tuesday or Wednesday. When the measure reaches the Senate, the upper chamber will act quickly, according to Senate Republican spokesman Erik Arneson. “We are very focused on the time pressure to get this bill done, the need to do it quickly. We hope to act the same day the House passes it to us. If not the same day, the day after,” he said. The Senate is scheduled to be in session Monday, Tuesday and Wednesday. Arneson said leaders are willing to stay through Friday, if they need the extra time to pass the law.
Pennsylvania has been borrowing federal money to pay out benefits since 2009, and now owes nearly $4 billion to Washington. If the state doesn’t implement new changes by the 11th, extended unemployment benefits funded by federal money will evaporate for 45,000 people.
However, lawmakers have figured out they actually have until June 17th, due to paperwork processing delays at the Department of Labor and Industry. So, like a college student typing out a last-minute term paper they’re taking advantage of the extra time, and won’t vote until next week.
House Republican spokesman Steve Miskin chalked the delay up to the legislative process. “Two chambers, 253 members, there’s clearly just differences of opinion,” he said.
House and Senate Republicans are, for the most part, on the same page with the new compromise legislation, which would trim $147 million in annual costs, and require recipients to actively look for work, among other changes. The new language was inserted into the bill this week by the House Labor and Industry Committee, and is now in front of the full chamber.
Senate Republican John Gordner, who’s leading negotiations on the issue for his caucus, said he doesn’t like provisions of the House bill that deal with “willful misconduct” and “voluntary quit” issues, which essentially dictate what benefits a person is eligible for after he or she voluntarily leaves a job. Gordner said the Senate will make additional changes, if the current language stays in the bill. That would delay the process and likely extend it beyond June 17th, but Miskin said House Republicans won’t back down. “We don’t feel there’s any reason for any contention,” he said. “40 other states have the same standard. Labor in the other states seem to be fine with it, and people aren’t being deprived of their rightful benefits. So we’re not sure what any issue is. It’s reasonable, and it’s common sense.”
A House vote will likely come Tuesday or Wednesday. When the measure reaches the Senate, the upper chamber will act quickly, according to Senate Republican spokesman Erik Arneson. “We are very focused on the time pressure to get this bill done, the need to do it quickly. We hope to act the same day the House passes it to us. If not the same day, the day after,” he said. The Senate is scheduled to be in session Monday, Tuesday and Wednesday. Arneson said leaders are willing to stay through Friday, if they need the extra time to pass the law.
Wednesday, June 8, 2011
Changes to Jobless Benefits Reform Proposal
Republicans in the Pennsylvania House are scaling back their unemployment compensation reform ambitions.
A few weeks after failing to pass a measure cutting costs and benefits by $630 million dollars a year, the Labor and Industry Committee approved a bill generating $147 million in annual savings. York County Republican Scott Perry, who pushed for the more sweeping overhaul, said it’s a step in the right direction. “Am I disappointed? Sure. Does this go a long way toward solving solvency? It doesn’t go far enough for me, but it’s a step in the right direction, and I have a commitment that we’re going to revisit solvency in the fall, and take a whack at that specifically,” he said. “Are these significant unemployment compensation reforms that haven’t been addressed in the last 30 years? Absolutely.”
The new House bill requires unemployment recipients to actively look for a job, and would delay assistance for people receiving more than $11,000 in severance payments. It would not massively restructure the way benefits are calculated, like Perry’s initial measure did.
The legislation approved by the committee is an amended version of Republican John Gordner’s bill, which passed the Senate unanimously in May. It initially cut costs by about $60 million a year. Gordner said he’s fine with the House doubling his legislation’s cost-savings, but objects to two portions of the new language. If the sections are amended out on the House floor this week, he says Senate Republicans could concur and send the measure directly to Governor Corbett. If not, the Senate would need to make more changes, sending the legislation to a conference committee, and complicating efforts to arrive at a law by week’s end.
The deadline is in place due to federal regulations, which would end extended benefits for 45,000 Pennsylvanians, if changes aren’t made by June 11th. However, as is the case with most legal deadlines, lawmakers can extend it a bit. Gordner explained, “we do know from the Department of Labor and Industry, because of the delay in paying benefits that we probably have until June 15th in order to actually get a bill to the governor. So that does give us a few extra days.”
A few weeks after failing to pass a measure cutting costs and benefits by $630 million dollars a year, the Labor and Industry Committee approved a bill generating $147 million in annual savings. York County Republican Scott Perry, who pushed for the more sweeping overhaul, said it’s a step in the right direction. “Am I disappointed? Sure. Does this go a long way toward solving solvency? It doesn’t go far enough for me, but it’s a step in the right direction, and I have a commitment that we’re going to revisit solvency in the fall, and take a whack at that specifically,” he said. “Are these significant unemployment compensation reforms that haven’t been addressed in the last 30 years? Absolutely.”
The new House bill requires unemployment recipients to actively look for a job, and would delay assistance for people receiving more than $11,000 in severance payments. It would not massively restructure the way benefits are calculated, like Perry’s initial measure did.
The legislation approved by the committee is an amended version of Republican John Gordner’s bill, which passed the Senate unanimously in May. It initially cut costs by about $60 million a year. Gordner said he’s fine with the House doubling his legislation’s cost-savings, but objects to two portions of the new language. If the sections are amended out on the House floor this week, he says Senate Republicans could concur and send the measure directly to Governor Corbett. If not, the Senate would need to make more changes, sending the legislation to a conference committee, and complicating efforts to arrive at a law by week’s end.
The deadline is in place due to federal regulations, which would end extended benefits for 45,000 Pennsylvanians, if changes aren’t made by June 11th. However, as is the case with most legal deadlines, lawmakers can extend it a bit. Gordner explained, “we do know from the Department of Labor and Industry, because of the delay in paying benefits that we probably have until June 15th in order to actually get a bill to the governor. So that does give us a few extra days.”
Saturday, May 28, 2011
Jobless Benefits "Reform" on Hold
A measure cutting unemployment compensation costs in Pennsylvania by 630 million dollars a year is stalled in the House. That could open the door for a more limited bill that unanimously passed the Senate this week.
Republican John Gordner said his bill would save about 60 million dollars a year – less than a tenth of what the House legislation, sponsored by Republican Scott Perry, would eliminate. Gordner said his measure is “more modest,” but pointed out it would also require people to actively look for jobs, while they’re receiving state aid. “It would use the existing CareerLink system that’s in place around the state,” he explained. “ Require folks that are receiving unemployment comp benefits to participate in the CareerLink system, and take advantage of the services they have.”
Lawmakers need to pass a bill changing unemployment compensation by June 11, or federal benefits will end, and 45,000 people will stop receiving checks. Pennsylvania’s unemployment fund has been empty for more than two years, and the state has borrowed nearly $4 billion from the federal government.
House Republican spokesman Steve Miskin said GOP leaders don’t view this week’s failed vote as an indication a sweeping benefits reform wouldn’t have the support to become law. He said the Senate measure is “probably going to go to the Labor Committee, the Labor and Industry Committee, and get looked at and vetted. Whichever bill comes out of the House is going to be passed with the collective wisdom of the House of Representatives.”
Unlike Perry’s measure, Gordner’s bill would create a “work share” program, which would let companies relegate employees to part-time, instead of laying them off. The workers would then be able to receive limited state benefits, to supplement their reduced income.
Republican John Gordner said his bill would save about 60 million dollars a year – less than a tenth of what the House legislation, sponsored by Republican Scott Perry, would eliminate. Gordner said his measure is “more modest,” but pointed out it would also require people to actively look for jobs, while they’re receiving state aid. “It would use the existing CareerLink system that’s in place around the state,” he explained. “ Require folks that are receiving unemployment comp benefits to participate in the CareerLink system, and take advantage of the services they have.”
Lawmakers need to pass a bill changing unemployment compensation by June 11, or federal benefits will end, and 45,000 people will stop receiving checks. Pennsylvania’s unemployment fund has been empty for more than two years, and the state has borrowed nearly $4 billion from the federal government.
House Republican spokesman Steve Miskin said GOP leaders don’t view this week’s failed vote as an indication a sweeping benefits reform wouldn’t have the support to become law. He said the Senate measure is “probably going to go to the Labor Committee, the Labor and Industry Committee, and get looked at and vetted. Whichever bill comes out of the House is going to be passed with the collective wisdom of the House of Representatives.”
Unlike Perry’s measure, Gordner’s bill would create a “work share” program, which would let companies relegate employees to part-time, instead of laying them off. The workers would then be able to receive limited state benefits, to supplement their reduced income.
Wednesday, May 25, 2011
Senator: Prohibit Gambling with Unemployment Funds
A state senator is chagrined that the latest Unemployment Compensation bill passed the Pennsylvania Senate without her amendment to bar the use of such funds at casinos.
Senator Lisa Boscola says her amendment would have prevented beneficiaries from using their Unemployment Compensation card at any ATM machine inside a casino.
Boscola says a similar measure is in place for state welfare cards, and could easily be implemented by the Pennsylvania Gaming Control Board.
The Northampton County Democrat says she thinks gambling with unemployment funds is a misuse of the program, which is paid into by employers. Boscola says she doesn’t think preventing cash withdrawals at casino ATMs is restricting anyone’s liberty.
Boscola says she had previously introduced the legislation as a stand-alone bill, but that has been in committee since the last legislative session. She says she’s going to increase her public outreach efforts and keep trying to get the original bill passed.
“Part of this is education, because once people know that individuals are using this card at the casinos, they’re getting very upset. But not enough people know right now,” says Boscola. “As I make people more aware, I’m hoping that more and more senators say, ‘You know what, this is a problem and we need to correct it.’”
Boscola says she thinks there are two reasons the amendment didn't make it through the Senate vote: first, because it would have delayed an urgent bill; second, because the state's gaming industry vehemently opposed it.
Senator Lisa Boscola says her amendment would have prevented beneficiaries from using their Unemployment Compensation card at any ATM machine inside a casino.
Boscola says a similar measure is in place for state welfare cards, and could easily be implemented by the Pennsylvania Gaming Control Board.
The Northampton County Democrat says she thinks gambling with unemployment funds is a misuse of the program, which is paid into by employers. Boscola says she doesn’t think preventing cash withdrawals at casino ATMs is restricting anyone’s liberty.
Boscola says she had previously introduced the legislation as a stand-alone bill, but that has been in committee since the last legislative session. She says she’s going to increase her public outreach efforts and keep trying to get the original bill passed.
“Part of this is education, because once people know that individuals are using this card at the casinos, they’re getting very upset. But not enough people know right now,” says Boscola. “As I make people more aware, I’m hoping that more and more senators say, ‘You know what, this is a problem and we need to correct it.’”
Boscola says she thinks there are two reasons the amendment didn't make it through the Senate vote: first, because it would have delayed an urgent bill; second, because the state's gaming industry vehemently opposed it.
Unemployment Compensation Could Be Lowered in PA
A House bill reducing unemployment benefits failed to pass a key hurdle Tuesday, but will likely be called up for another vote later this week.
The legislation would save more than $600 million a year, by narrowing eligibility for unemployment compensation and lowering benefits. Among other changes, people would need to actively look for work while receiving state support. The measure would also bar people from cashing unemployment checks while they’re still receiving severance pay from their former employers.
Sponsor Scott Perry, a Cumberland County Republican, said benefits need to be trimmed. “We are $3.7 billion in debt to the federal government,” he argued. “Our fund is bankrupt. The federal government’s fund is bankrupt, and we are required to pay the bills, starting this year.”
Because of the federal debt, and Pennsylvania’s improved 7.5 percent unemployment rate, lawmakers need to restructure the unemployment compensation program by June 11. If that doesn’t happen, extended federal benefits will disappear, along with checks for 45,000 Pennsylvanians.
Democrats agree on the need for a speedy fix, but argue Perry’s bill pays down Pennsylvania’s debt on the backs of the unemployed. “It dramatically cuts the benefits that workers receive,” said Philadelphia Democrat Mark Cohen. “A lot of workers who now get unemployment compensation will not get any compensation whatsoever, without the Parker amendment.”
Enough lawmakers had concerns about the measure to stall its progress on Tuesday afternoon. The House needs to pass a bill three times before it moves to the Senate, and the measure failed on second consideration by a 122-79 margin. Republican leaders made a “motion to reconsider,” and say they may call the bill up for another vote tomorrow.
Unemployment compensation reform became a hot political issue during last year’s gubernatorial campaign, when Republican Tom Corbett said he’d consider increasing both employer and employee contributions to the state’s fund, in order to pay off the federal debt. (Corbett later walked that comment back.) Right now, employees pay a .08 percent unemployment tax, which amounts to about 80 cents for every thousand dollars earned. Companies also pay a tax – but only on the first $8,000 every employee earns.
Pennsylvania has been using federal money to pay out benefits since early 2009.
The legislation would save more than $600 million a year, by narrowing eligibility for unemployment compensation and lowering benefits. Among other changes, people would need to actively look for work while receiving state support. The measure would also bar people from cashing unemployment checks while they’re still receiving severance pay from their former employers.
Sponsor Scott Perry, a Cumberland County Republican, said benefits need to be trimmed. “We are $3.7 billion in debt to the federal government,” he argued. “Our fund is bankrupt. The federal government’s fund is bankrupt, and we are required to pay the bills, starting this year.”
Because of the federal debt, and Pennsylvania’s improved 7.5 percent unemployment rate, lawmakers need to restructure the unemployment compensation program by June 11. If that doesn’t happen, extended federal benefits will disappear, along with checks for 45,000 Pennsylvanians.
Democrats agree on the need for a speedy fix, but argue Perry’s bill pays down Pennsylvania’s debt on the backs of the unemployed. “It dramatically cuts the benefits that workers receive,” said Philadelphia Democrat Mark Cohen. “A lot of workers who now get unemployment compensation will not get any compensation whatsoever, without the Parker amendment.”
Enough lawmakers had concerns about the measure to stall its progress on Tuesday afternoon. The House needs to pass a bill three times before it moves to the Senate, and the measure failed on second consideration by a 122-79 margin. Republican leaders made a “motion to reconsider,” and say they may call the bill up for another vote tomorrow.
Unemployment compensation reform became a hot political issue during last year’s gubernatorial campaign, when Republican Tom Corbett said he’d consider increasing both employer and employee contributions to the state’s fund, in order to pay off the federal debt. (Corbett later walked that comment back.) Right now, employees pay a .08 percent unemployment tax, which amounts to about 80 cents for every thousand dollars earned. Companies also pay a tax – but only on the first $8,000 every employee earns.
Pennsylvania has been using federal money to pay out benefits since early 2009.
Sunday, May 22, 2011
State Lawmakers Look to Keep Federal Jobless Benefits
The Pennsylvania Senate and House are each expected to vote this week on unemployment compensation-related legislation as a June 11 deadline nears to preserve 13 weeks of federally-funded jobless benefits.
The federal government Friday determined that Pennsylvania's unemployment rate which dipped to 7.5% in April had dropped far enough to trigger the deadline. The national jobless rate was 9.0% in April.
Republican and Democratic state lawmakers appear united in wanting to preserve the 13weeks of benefits because an estimated 45,000 Pennsylvanians would immediately lose a weekly check, and another 90,000 will miss out on those benefits altogether during 2011.
However, debate could be heated over how to repay Pennsylvania's $3.7 billion debt to the federal government for the cost of unemployment benefits accumulated since the recession began.
The federal government Friday determined that Pennsylvania's unemployment rate which dipped to 7.5% in April had dropped far enough to trigger the deadline. The national jobless rate was 9.0% in April.
Republican and Democratic state lawmakers appear united in wanting to preserve the 13weeks of benefits because an estimated 45,000 Pennsylvanians would immediately lose a weekly check, and another 90,000 will miss out on those benefits altogether during 2011.
However, debate could be heated over how to repay Pennsylvania's $3.7 billion debt to the federal government for the cost of unemployment benefits accumulated since the recession began.
Friday, May 20, 2011
Unemployment in PA Falls
Pennsylvania’s unemployment rate has dropped to its lowest level since March 2009.
The Department of Labor and Industry says April’s 7.5 percent figure is the latest sign of a slow but steady economic recovery. Scott Meckley, the manager of the agency’s Center for Workforce Information and Analysis, explained Pennsylvania has created more than 80,000 jobs in the last 12 months. “What we’ve seen is a gradual drop in the rate from when we peaked at 8.8 percent a year ago. And I think what this means – you can see in the numbers that the number of unemployed individuals in the state continues to shrink,” he said. “And we’re seeing a corresponding increase in the number of employed individuals.”
Unemployment rose above 8 percent in May 2009, and stayed there until February. The rate peaked in early 2010, at 8.8 percent, but never broke into the nine percent range, as the national figure did. In fact, Pennsylvania’s unemployment rate stayed below the national average throughout the recession.
Meckley said he’s always cautious about reading too much into one month of data, but that the .3 percent drop from March to April is part of a larger trend. “The number of people in the state that are considered unemployed – that is not working, but wanting to work, has declined pretty much every month for the past year or so.”
The Department of Labor and Industry says April’s 7.5 percent figure is the latest sign of a slow but steady economic recovery. Scott Meckley, the manager of the agency’s Center for Workforce Information and Analysis, explained Pennsylvania has created more than 80,000 jobs in the last 12 months. “What we’ve seen is a gradual drop in the rate from when we peaked at 8.8 percent a year ago. And I think what this means – you can see in the numbers that the number of unemployed individuals in the state continues to shrink,” he said. “And we’re seeing a corresponding increase in the number of employed individuals.”
Unemployment rose above 8 percent in May 2009, and stayed there until February. The rate peaked in early 2010, at 8.8 percent, but never broke into the nine percent range, as the national figure did. In fact, Pennsylvania’s unemployment rate stayed below the national average throughout the recession.
Meckley said he’s always cautious about reading too much into one month of data, but that the .3 percent drop from March to April is part of a larger trend. “The number of people in the state that are considered unemployed – that is not working, but wanting to work, has declined pretty much every month for the past year or so.”
Friday, March 4, 2011
PA Jobless Rate Lowest in 20 Months
Pennsylvania’s unemployment rate is down. The seasonally adjusted unemployment rate dropped to 8.2 percent in January – that’s the lowest level since June 2009. The rate had held at 8.5% for four straight months.
The Commonwealth gained more than six-thousand nonfarm jobs.
Mark Price, a labor economist with the Keystone Research Center, says he’s encouraged by the news.
"It’s a good number, and it’s a clear sign that the economy is on the path that we’re all expecting it to be, which is recovery. The one downside, of course, though, is that because the recession was so deep, it’s going to take a long time to get back to full employment."
Still, Price is worried the economy could turn south again.
"One: we see rising gas prices. Which is a threat to the overall state of the economy, if that continues for another few months that could slow things. And on top of that, in addition to the federal cuts that are being discussed, we also have rounds of cutbacks in state and local governments. Not just here in Pennsylvania, but also throughout the country."
The unemployment figures were released a few days after February’s state revenue report. Taxes came in under projections last month, but Pennsylvania is still 243 million dollars in the black.That’s about the same size as the deficit the state was facing at this point last year.
The Commonwealth gained more than six-thousand nonfarm jobs.
Mark Price, a labor economist with the Keystone Research Center, says he’s encouraged by the news.
"It’s a good number, and it’s a clear sign that the economy is on the path that we’re all expecting it to be, which is recovery. The one downside, of course, though, is that because the recession was so deep, it’s going to take a long time to get back to full employment."
Still, Price is worried the economy could turn south again.
"One: we see rising gas prices. Which is a threat to the overall state of the economy, if that continues for another few months that could slow things. And on top of that, in addition to the federal cuts that are being discussed, we also have rounds of cutbacks in state and local governments. Not just here in Pennsylvania, but also throughout the country."
The unemployment figures were released a few days after February’s state revenue report. Taxes came in under projections last month, but Pennsylvania is still 243 million dollars in the black.That’s about the same size as the deficit the state was facing at this point last year.
Friday, January 7, 2011
CCAC and Employers Cooperate to Fill Jobs
Unemployment across the nation dropped to 9.4% in December down from 9.8% the previous month. Employers added 103,000 jobs but economists say the jobless rate dropped in part due to people giving up searching for work.
The Community College of Allegheny County (CCAC) is offering programs and certifications that correlate with job openings in the Pittsburgh area. A report by the Three Rivers Workforce Investment Board (TRWIB) found the top occupational "clusters," which represented 50 percent of online job postings. Charles Blocksidge, executive director of the CCAC Allegheny Workforce Alliance says, "Management, Computers, Technology, Office Administrative Support and Healthcare" jobs are in demand for the future.
CCAC's Career Specialists cooperate with employers by telling them of the qualified graduates. "That's the key component: to make that linkage. If employers have opportunities and their looking for individuals with those kinds of skill sets we always tell [employers] that if you need someone with particular, specific set of skills that we're able to produce those individuals."
CCAC has 170 educational programs, not including those offered in the Dislocated Workers Program which offers those who have lost their jobs because of the economic recession the opportunity to become educated without charge.
Blocksidge says that we can match [graduates'] skill sets with job opportunities if we know where they are and what the demand is." Registration is closed for the Spring 2011 semester, but Summer Registration is in February and March.
The Community College of Allegheny County (CCAC) is offering programs and certifications that correlate with job openings in the Pittsburgh area. A report by the Three Rivers Workforce Investment Board (TRWIB) found the top occupational "clusters," which represented 50 percent of online job postings. Charles Blocksidge, executive director of the CCAC Allegheny Workforce Alliance says, "Management, Computers, Technology, Office Administrative Support and Healthcare" jobs are in demand for the future.
CCAC's Career Specialists cooperate with employers by telling them of the qualified graduates. "That's the key component: to make that linkage. If employers have opportunities and their looking for individuals with those kinds of skill sets we always tell [employers] that if you need someone with particular, specific set of skills that we're able to produce those individuals."
CCAC has 170 educational programs, not including those offered in the Dislocated Workers Program which offers those who have lost their jobs because of the economic recession the opportunity to become educated without charge.
Blocksidge says that we can match [graduates'] skill sets with job opportunities if we know where they are and what the demand is." Registration is closed for the Spring 2011 semester, but Summer Registration is in February and March.
Wednesday, December 15, 2010
House Could Vote Today or Tomorrow on Compromise
On an 81-19 vote, the U.S. Senate this afternoon approved compromise legislation to extends the Bush tax cuts and federal jobless benefits. Now the measure goes to the House for consideration
Pittsburgh area Congressman Tim Murphy (R- PA18), says he's leaning towards voting "yes". He says that there is a lot in the bill that he doesn't agree with; like tax credits for motor sports arenas, Virgin Island Rum, and Ethanol. But he believes that the compromise is important to aid the economy.
Pittsburgh area Congressman Tim Murphy (R- PA18), says he's leaning towards voting "yes". He says that there is a lot in the bill that he doesn't agree with; like tax credits for motor sports arenas, Virgin Island Rum, and Ethanol. But he believes that the compromise is important to aid the economy.
Murphy says he doesn't like the position that voting on jobless benefits has put him and his colleagues in. He believes some unemployed are taking advantage of the benefits, which aren't much less than their paychecks. But Murphy added there are others who really need the money, and this legislation creates a Catch 22 for elected officials.
He also says that Democrats in the House who want to eliminate the estate tax exemption do not clearly understand small business owners. "They're holding onto their money and not making the investments (they should), because they're expecting to take a big hit. Again that's not a big hit on a tax when they die but that's a big hit on what they have to invest in over the next several years on those elements on insurance and other fees in anticipation of holding/staving off this tax that would otherwise destroy their business."
Murphy says that through his polling and what he's heard from his constituents, people understand that the bill is a compromise and want it to pass.
Wednesday, December 1, 2010
Labor Sec: Keep Filing for Jobless Benefits
Thousands of Pennsylvania residents will lose their unemployment benefits this month, unless Congress extends emergency funding for the financial support program.
Without action from the House and Senate, the benefit window will shrink from 99 to 26 weeks.
Pennsylvania’s Secretary of Labor and Industry, Sandi Vito, says because of that, 83-thousand Pennsylvanians will lose benefits in December. The figure will grow to 355-thousand by April.
"We are telling claimants that they should continue to file their bi-weekly claims. Because in the past, Congress has acted after the renewal – or the timeline for the extensions has run out."
Another extension would add about 65 billion dollars to the deficit, but supporters say the cost is worth it, to help people through the sputtering economy. Congressional Republicans apparently want to tie any extension of the jobless benefits to an extension of the Bush era tax cuts.
The average unemployment check is a bit more than three hundred dollars.
Pennsylvania’s unemployment rate is just below nine percent. That’s a bit less than a point below the national average.
Without action from the House and Senate, the benefit window will shrink from 99 to 26 weeks.
Pennsylvania’s Secretary of Labor and Industry, Sandi Vito, says because of that, 83-thousand Pennsylvanians will lose benefits in December. The figure will grow to 355-thousand by April.
"We are telling claimants that they should continue to file their bi-weekly claims. Because in the past, Congress has acted after the renewal – or the timeline for the extensions has run out."
Another extension would add about 65 billion dollars to the deficit, but supporters say the cost is worth it, to help people through the sputtering economy. Congressional Republicans apparently want to tie any extension of the jobless benefits to an extension of the Bush era tax cuts.
The average unemployment check is a bit more than three hundred dollars.
Pennsylvania’s unemployment rate is just below nine percent. That’s a bit less than a point below the national average.
Tuesday, November 30, 2010
Extended Jobless Benefits to Expire
Nearly 2 million Americans, including 83,000 Pennsylvanians, are set to lose their extended weekly unemployment benefits starting tomorrow, December 1st. That's because Congress has not reauthorized the program that extends the benefits for many jobless up to 99 weeks.
U.S. Senator Bob Casey of Pennsylvania says reauthorizing the emergency benefits is the right thing to do "to help people get from here to there...meaning a point in their lives where they're jobless to a point where they're back to work. These are folks who have lost their jobs through no fault of their own and just need a little help to get over that bridge."
However, there is also no vote scheduled in either the House or Senate. Casey says he and 28 other Senators have circulated a letter calling for a unanimous consent resolution on the floor late this afternoon that calls for a vote on the extension. But if a Senator stands up on the floor and says "no," then the resolution asking for a vote is defeated..."then we have to think of another way to get it done."
Casey says in addition to helping the jobless, there is a bang for the buck even though the cost would add to the deficit........."Goldman Sachs has said expiration of these benefits will cause economic growth to fail by one half of a percentage point...that's a big number. The Economic Policy Institute says extending the benefits would increase the GDP (Gross Domestic Product) by 7 tenths of a percentage point...that's also a bit number in the context of keeping the recovery moving in the right direction."
Casey rejects suggestions by critics of the program that extending benefits discourages people from looking for work.
Unless Congress acts quickly, beginning tomorrow, people who apply for the first time can expect a maximum of 26 weeks of benefits, while many of those receiving them now will lose them before the 99 weeks are up.
U.S. Senator Bob Casey of Pennsylvania says reauthorizing the emergency benefits is the right thing to do "to help people get from here to there...meaning a point in their lives where they're jobless to a point where they're back to work. These are folks who have lost their jobs through no fault of their own and just need a little help to get over that bridge."
However, there is also no vote scheduled in either the House or Senate. Casey says he and 28 other Senators have circulated a letter calling for a unanimous consent resolution on the floor late this afternoon that calls for a vote on the extension. But if a Senator stands up on the floor and says "no," then the resolution asking for a vote is defeated..."then we have to think of another way to get it done."
Casey says in addition to helping the jobless, there is a bang for the buck even though the cost would add to the deficit........."Goldman Sachs has said expiration of these benefits will cause economic growth to fail by one half of a percentage point...that's a big number. The Economic Policy Institute says extending the benefits would increase the GDP (Gross Domestic Product) by 7 tenths of a percentage point...that's also a bit number in the context of keeping the recovery moving in the right direction."
Casey rejects suggestions by critics of the program that extending benefits discourages people from looking for work.
Unless Congress acts quickly, beginning tomorrow, people who apply for the first time can expect a maximum of 26 weeks of benefits, while many of those receiving them now will lose them before the 99 weeks are up.
Friday, November 19, 2010
PA's Jobless Rate Dips Below 9%
Pennsylvania’s economy added nearly 16-thousand jobs last month.
The state’s unemployment numbers dropped by 10-thousand last month, lowering unemployment to 8.8 percent....down from 9.0% in September.
The percentage has been above nine since February.
Governor Ed Rendell says his administration can take partial credit for the dip, citing two reasons.
"Number one, the incentives that we have invested into the economy. Investments to promote economic growth clearly work, and they work here in Pennsylvania. And number two, the superb job that Secretary Vito’s department has done in training. Pennsylvania Careerlinks, etc."
Pennsylvania’s statistic is now nearly a full point below the national 9.6 percent unemployment rate.
The figure was at 5.8 percent when Rendell first took office. It dropped below 5 halfway through 2005, and stayed there until early 2008. It hit its high point for the last 8 years in July at 9.3%.
The state’s unemployment numbers dropped by 10-thousand last month, lowering unemployment to 8.8 percent....down from 9.0% in September.
The percentage has been above nine since February.
Governor Ed Rendell says his administration can take partial credit for the dip, citing two reasons.
"Number one, the incentives that we have invested into the economy. Investments to promote economic growth clearly work, and they work here in Pennsylvania. And number two, the superb job that Secretary Vito’s department has done in training. Pennsylvania Careerlinks, etc."
Pennsylvania’s statistic is now nearly a full point below the national 9.6 percent unemployment rate.
The figure was at 5.8 percent when Rendell first took office. It dropped below 5 halfway through 2005, and stayed there until early 2008. It hit its high point for the last 8 years in July at 9.3%.
Thursday, September 30, 2010
Analysis of PA's Jobless
With Pennsylvania’s unemployment rate still above 9%, Labor & Industry Secretary Sandi Vito has introduced A Profile of Pennsylvania’s Unemployed People which details the demographics of unemployed people and the recession’s effects on the workforce. Vito says this recession is the longest since the Great Depression and she believes the demographics are somewhat different from prior rates of unemployment …”so we wanted to better understand so we could better serve the unemployed.”
Vito says most of the 600,000 currently unemployed Pennsylvanians are educated, in their working prime, and – for many – facing the uncertainty of unemployment for the first time in their lives. 350,000 will exhaust their jobless benefits by April
“In Pennsylvania, and across the nation, there are about five applicants for every one job opening. This report illustrates – with clarity – the challenges faced by citizens who, through no fault of their own, have lost their jobs and are struggling to make ends meet.
Vito says the report presents the basic facts about Pennsylvania’s unemployed people, including their demographic characteristics and educational background, where they live, their work histories, and the industries and occupations of their last job.
“Pennsylvanians who are unemployed want to go back to work. We hear from people across the state that they want meaningful careers and jobs that pay a family-sustaining wage. What is also clear is that many skilled people are on the sidelines because of this recession, but could be making a meaningful contribution to businesses and our state economy. Their talents are being wasted because of a lack of job opportunities.
Vito says the report can be used by legislators and policymakers in making decisions regarding economic and workforce development programs and policies moving forward.
Monday, September 27, 2010
Dept. of Labor Promotes Older Workforce
This weekend marked the conclusion of National Employ Older Workers Week, an effort by the U.S. Department of Labor to promote the hiring of people 55 and older.
Experience Works administers the Senior Community Service Employment Program in Pennsylvania. The program pays older workers minimum wage for community service work as they receive skills training and job search assistance.
Experience Works Office Administrator Marcia Wilson says while the program helped more than 1,100 seniors in the past year, the need for assistance is growing beyond its scope. Wilson says age discrimination among employers is a contributing factor.
“Whether we like to admit that or not, it is there. And people oftentimes think that an older person either can’t keep up with the younger people, can’t get along with the younger people, can’t learn anything new, or don’t want to do today’s jobs. Those are all myths that we have to dispel.”
Wilson says one area where seniors have an advantage is part-time employment: combined with social security or retirement funds, seniors can thrive on multiple income streams. She says people 55 and older often take these jobs when younger workers turn them down.
Experience Works administers the Senior Community Service Employment Program in Pennsylvania. The program pays older workers minimum wage for community service work as they receive skills training and job search assistance.
Experience Works Office Administrator Marcia Wilson says while the program helped more than 1,100 seniors in the past year, the need for assistance is growing beyond its scope. Wilson says age discrimination among employers is a contributing factor.
“Whether we like to admit that or not, it is there. And people oftentimes think that an older person either can’t keep up with the younger people, can’t get along with the younger people, can’t learn anything new, or don’t want to do today’s jobs. Those are all myths that we have to dispel.”
Wilson says one area where seniors have an advantage is part-time employment: combined with social security or retirement funds, seniors can thrive on multiple income streams. She says people 55 and older often take these jobs when younger workers turn them down.
Tuesday, September 21, 2010
Bill Would Make More People Eligible for Jobless Benefits
Pennsylvania’s Labor and Industry Secretary is pushing for a change in unemployment eligibility requirements.
Secretary Sandi Vito says 30-thousand out-of-work Pennsylvanians would become eligible for assistance if the bill goes through.
Right now, state officials don’t weigh a person’s most recent quarter of earnings, when they’re determining whether or not someone is eligible for unemployment compensation. Instead, the other four of the previous five quarters are examined.
Vito says the law disqualifies people who are in and out of work.
"A lot of folks – and this economy, this is happening more and more often, where folks are getting laid off, they take a job in good faith, only to be laid off again. And in that case, they’re being penalized, in a lot of cases, because we can’t count their most recent earnings."
A House bill sponsored by Allegheny County Democrat Marc Gergely would change the requirements, and qualify Pennsylvania for 273 million dollars in federal aid.
But members of the business community argue the shift would lower standards, and make unemployment compensation an entitlement, rather than a safety net.
Kevin Shivers, the Pennsylvania director for the National Federation of Independent Businesses, explains.
"So now under this legislation, if it were to become law, teenagers – who may have a summer job – or somebody who has a seasonable job, would now be able to collect unemployment benefits. So these are people with very little attachment to the workforce."
The change would make Pennsylvania eligible for 273 million dollars in federal assistance. It would also let people who quit their jobs due to a family member’s move apply for unemployment benefits.
It’s currently in front of the House Labor Relations Committee.
Secretary Sandi Vito says 30-thousand out-of-work Pennsylvanians would become eligible for assistance if the bill goes through.
Right now, state officials don’t weigh a person’s most recent quarter of earnings, when they’re determining whether or not someone is eligible for unemployment compensation. Instead, the other four of the previous five quarters are examined.
Vito says the law disqualifies people who are in and out of work.
"A lot of folks – and this economy, this is happening more and more often, where folks are getting laid off, they take a job in good faith, only to be laid off again. And in that case, they’re being penalized, in a lot of cases, because we can’t count their most recent earnings."
A House bill sponsored by Allegheny County Democrat Marc Gergely would change the requirements, and qualify Pennsylvania for 273 million dollars in federal aid.
But members of the business community argue the shift would lower standards, and make unemployment compensation an entitlement, rather than a safety net.
Kevin Shivers, the Pennsylvania director for the National Federation of Independent Businesses, explains.
"So now under this legislation, if it were to become law, teenagers – who may have a summer job – or somebody who has a seasonable job, would now be able to collect unemployment benefits. So these are people with very little attachment to the workforce."
The change would make Pennsylvania eligible for 273 million dollars in federal assistance. It would also let people who quit their jobs due to a family member’s move apply for unemployment benefits.
It’s currently in front of the House Labor Relations Committee.
Subscribe to:
Posts (Atom)