Coronavirus unemployment: $3.9 billion paid to jobless in California

Apr. 23--The pace of California unemployment claims slowed slightly last week, but still more than half a million people filed for jobless benefits, bringing the total to nearly 3.4 million workers -- one out of every six in the state -- who have lost jobs in the economic fallout from the coronavirus.

Since March 15, the state has paid out a jaw-dropping $3.94 billion in unemployment claims, Gov. Gavin Newsom said on Thursday during his regular update on California's part in the battle against the coronavirus.

"About $1 billion in claims since Sunday have been distributed," Newsom said.

That money, along with an extra $600 in unemployment benefits financed by the federal government, is sorely needed.

"I've actually received three weeks of payments now, including the $600," said Santa Rosa resident Linda Barrett, a former escrow officer who was laid off from her part-time retail clerk job at Macy's recently. "I'm thrilled. I'm absolutely thrilled. I was very concerned. Now, this is a real relief."

Multiple Bay Area workers said the $600 in federal payments are arriving every week, while the state payments are bi-weekly.

"It really helps to get the federal payment in-between the state payment," said Carol Bramlett, a Sonoma resident who lost her job at a hotel in the Wine Country. "I know other friends are getting their extra $600. We're going to be able to pay our rent now."

The federal supplement, when combined with the maximum state jobless benefit of $450, produces a weekly payment of $1,050. For people with the average weekly payment in California of $340, the enhanced weekly payment would be $940.

Last week, 530,000 workers in the state filed for unemployment, according to a new report released Thursday by the federal government. Nationally, 4.4 million workers filed for benefits, the federal government reported.

Many of the California workers have been furloughed. The vast majority of official notices during March and April to notify the EDD about layoffs were described as "temporary" layoffs or closures.

One bright spot in the dark economic landscape: The job losses in California clearly peaked last month when 1.06 million people filed claims during the week that ended on March 28.

Over the five weeks of California business lockdowns imposed by state and local officials trying to contain the virus, 3.35 million California workers have filed initial claims for unemployment, U.S. Labor Department statistics show.

But even as the state Employment Development Department ramped up efforts to deal with the unprecedented surge in jobless claims, the phone system continued to falter.

"We are currently receiving more calls than we can answer," was the recorded refrain at the main EDD phone number on Thursday. "Please try your call again later."

The governor acknowledged the chronic woes at the EDD call centers.

"None of us are naive about the responsibility we have as a state and an administration to make sure that call center gets cleaned up and we do more to process those claims," Newsom said at his news briefing on Thursday. "We are continuing to process claims and address some of the anxiety around getting access to an individual, a human being, to answer the phone."

Newsom estimated last week that the EDD would soon process "a million or so payments a week."

Despite the governor's assurances, numerous workers have complained of widespread glitches at the EDD.

"When I called the EDD, they are too busy to answer the phone, they just say here's some information, and then it's goodbye," said Carol Zink, a Redwood City resident who lost her job as a substitute teacher recently. "When you call it says they are getting too many calls. The EDD website doesn't provide any answers."

The ranks of the EDD unemployment insurance unit last week nearly doubled to 1,340 workers when 600 employees were added to an existing 740 EDD employees. More hiring is underway.

"We are adding a few hundred more personnel," Newsom said. The beleaguered EDD also is attempting to tap the state Franchise Tax Board and the Covered California agency to learn about some "best practices" for improving the lagging phone response, Newsom added.

About 26 million workers in the United States have filed jobless claims since government-imposed business shutdowns began going into effect around the country, according to the Labor Department.

The jobless trends could worsen in California, however, during the next few weeks, warned Michael Bernick, a former EDD director and an employment attorney with law firm Duane Morris.

"In California, independent contractors and sole proprietors have not been able to file unemployment insurance claims," Bernick said. "When they are able to do so, starting next Tuesday, April 28, they will add significantly to the numbers of new claims."

Zink and others say the State of California has let them down during the lockdown mandates.

"The EDD has failed me, they have failed many people," Zink said. "The EDD is trying, but they have failed."

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