Deluge Is Holding Up Benefits to Unemployed

Thousands of people in the Washington area and hundreds of thousands more across the country are waiting longer than they should for unemployment benefits at a time when they need the money the most because rising joblessness is overwhelming claims offices, records show.

The problem is compounded by a simultaneous decrease in federal funding, which has reduced staffing at some local government offices. The result is that the District and many states, including Maryland and Virginia, are failing to meet federal guidelines that require timely processing of unemployment claims, appeals and benefit payments, the records show.

It’s likely to get worse. Figures released yesterday by the U.S. Bureau of Labor Statistics show that Washington area unemployment has hit its highest level since August 1993. The jobless rate climbed to 4.7 percent in December from 3 percent a year earlier and 4.4 percent in November. That’s well below the national average of 7.2 percent but still a burden for claims offices.

Carrie Kenworthy of Manassas has experienced the problem. She was laid off from her $80,000-a-year job as a mortgage loan officer in 2007. Then she tried to file for an extension in unemployment benefits in July. The Virginia Employment Commission denied her claim three times. Her appeals took more than two months because of a state backlog in cases.

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Posted in * Economics, Politics, Economy, Labor/Labor Unions/Labor Market, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--