State and federal unemployment systems are facing rock-bottom funding, forcing states to distribute benefit checks with money they do not have. According to the New York Times, sixteen states are relying on borrowed money to fund their unemployment programs. That number is expected to double by the end of the year.
The unemployment system also is failing to comply with federal standards. Thirty-eight states have failed to make jobless benefits decisions by the federal deadline.
- New York Daily News
I first became aware of how serious of a problem our unemployment system was having, when my fiance became unemployed about two days, before we got engaged. When she called to get her benifits started, she was told that they were 11-weeks behind.
Eleven weeks? Almost 3 months, how is a person to survive that long with no resources of any kind? Obviously, her best bet is to find a job before her unemployment even begins. Still though, that is way to long to make the unemployed wait.
Sure, once the unemployment starts, there is 26-weeks of payments, but what good is that if you are homeless by the time the checks start.
Of course there is another angle to look at this to. One which, Dave Ramsey preaches relentlessly. That is having an emergency fund of 3-6 months saved up. If she had that savings, she would have that to fall on while she waits on the unemployment office and looks for the new job. Unfortunately she finds herself in the same boat as millions of others, with no savings, due in large part because of their spend now, pay later lifestyles that have left them deeply in debt.
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4 comments:
When I lost my job a few years ago, I had to go on employment insurance. It took a full 11 weeks to get any sort of payment from the government. And had it not been for my $3k emergency fund, I don't know what I would have done.
Not only do you have to survive without a pay cheque, but you also have to job hunt - which can be expensive if you have to do any sort of traveling.
I guess this varies by state. my state has massive seasonal unemployment and it is pretty much a way of life for a lot of people.
I have never had an issue getting paid within 2 weeks. Only issues I know of are when there is a dispute over the circumstances of termination. I know people who have had to appeal and eventually won. For example my friend got nothing for a few months and then got several thousand dollars at once. In the meantime he had savings.
if you are job hunting and find a new job then the Unemployment becomes a windfall when it does come through. Even if you are denied or if there is a hold you keep filing every 2 weeks to preserve your claim. Here there is also an automatic 33 week extension. So theoretically one could be on UE for 59 weeks.
Job Hunts are almost exclusively online these days. There are many companies that don't even accept applications or contacts except through the websites. Maintaining an unemployment claim can be as simple as applying for 2 jobs online every week.
more proof that everyone needs 3-6 months in an emergency fund.
I have had 3 emergencies over the past year, each costing about $1,000. Plus I am now only working very little part time. It is tight but that emergency money is seeing us through.
Thanks for your blog.
Sounds like building up a little savings os more important than paying for a wedding right now.
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