State and federal regulators are cracking down on waste and fraud in the unemployment insurance system, problems that have hit record levels as jobless claims surge in a weak economy.
In the 12 months through March, the overpayment rate was 11.6% ”” more than $1 for every $9 paid out, Labor Department figures show. That’s up from the 12 months that ended in June 2010, when 10.6% of the $156 billion in jobless benefits disbursed to Americans should not have been paid, the department says. The overpayment rate was 9.6% in fiscal 2009 and 9.2% in 2008.
About 9.3 million Americans are currently receiving jobless benefits. Several state agencies have had to borrow money to pay those benefits.