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LABOR DEPARTMENT ANNOUNCES UNPRECEDENTED STEPS TO BETTER ASSIST WORKERS WITH THEIR UNEMPLOYMENT INSURANCE CLAIMS
New York State Department of Labor | Tue, December 30th, 2008


Albany, NY - This afternoon, State Labor Commissioner M. Patricia Smith announced a series of measures to aid workers affected by the current recession gripping the state and nation. These new measures, which will begin on Monday, December 8, will be fully in place by the end of December. They will help DoL maximize existing federal resources by hiring new staff at the Tel-Claims Centers (TCCs) in Troy and Endicott, reassigning existing staff to assist with the high volume of calls, extending TCC hours and enhancing technology to lessen the need to speak directly to a call center agent.

These measures are of paramount importance, as just last Friday, the U.S. Department of Labor reported that 533,000 nonfarm jobs were lost in November, and the national unemployment rate rose to 6.7 percent, representing the highest rate increase in 15 years. By comparison, New York’s unemployment rate, after seasonal adjustment, was 5.7 percent in October 2008, compared to October 2007, when the state's rate was 4.6 percent. Given national trends, there is a strong possibility that the state’s unemployment rate will have increased to well over 6% by the end of this year, and to a considerably higher level in 2009.

“In government, especially in times of financial crisis, we are often asked to do more with less,” said Commissioner Smith. “Our staff is doing work of the highest caliber on behalf of workers, and I can’t thank them enough for all they are doing during these uncertain times. We have listened to workers; we have heard their frustrations, and we are doing everything in our power to help them during their time of need.”

In November 2008, nearly 826,000 calls regarding UI benefit claims and information came into the Department of Labor, compared to just over 322,000 in November 2007. During this same time period, original claims, excluding Extended Unemployment Compensation (EUC), increased by 59 percent, from approximately 58,000 in November 2007 to more than 92,000 in November 2008.

In addition to an increase in original claims, New York State has paid close to $500 million in Extended Unemployment Compensation (EUC) to over 154,000 individuals since it was authorized in July. On November 21, the President signed a second extension that will provide an additional seven weeks of EUC benefits to unemployed New Yorkers. Had the additional seven-week extension not been signed, 100,000 New York residents would have exhausted their EUC benefits by the end of the year, creating a devastating impact on the state’s economy.

In response to this influx in new calls and claims, beginning this week, DoL is doubling the number of people taking calls through the use of recently hired staff and reassignment of other federally funded staff, resulting in 315 call takers at the TCCs. Additional hires are also underway. To free up call center space for the new staff, UI Adjudicators currently located in Troy will be moved to DoL Headquarters in Albany.

By the end of December, DoL will also extend the hours of operation at both TCCs past their normal operating hours of 8 a.m. to 5 p.m. In addition, DoL has committed $10 million in discretionary federal funds to local regions across the state to better serve workers, including $4 million to New York City, which announced earlier last week that One-Stop Career Centers in all five boroughs will expand their hours of operation as a result of this increase in funding. DoL is also exploring options for Centers in every region of the state to expand their hours of operation.
Of note, reductions in overall Department of Labor staff over the past eight years have been significant - from 5,153 in 2000 to 3,797 in 2008. At the same time, in 2000, local funding in New York State under the federal Workforce Investment Act, which is specially designed to help workers in need, was $223.6 million. In 2007, this number was $140.7 million, a 37 percent decrease.

“We are fully aware of the fears that many New Yorkers are experiencing in this economic crisis, especially as the holidays come nearer,” said Commissioner Smith. “These unprecedented times call for creative solutions, and we are using every means at our disposal to make certain that worker needs are being completely addressed.”
For more information on the Labor Department and its programs, please visit www.labor.ny.gov.




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