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Unemployment Extension 2018

Unemployment Extension 2018
The economic recession and financial crisis that spanned from 2007 and continues even today, is one of the ghastliest financial disasters. Here, we have provided the latest updates about federal unemployment insurance and unemployment extension predictions for the year 2018.
OpinionFront Staff
Last Updated: Apr 9, 2018

Since the year 1932, some states, along with the federal government have implemented what is termed as an unemployment benefit. The United States Congress passed the Federal Unemployment Tax Act. In accordance with the act, employers had to pay a specified payroll tax to the Internal Revenue Service (IRS). The IRS then contributes these funds in a state-wise proportion, which funds the unemployment insurance and job service programs.

In the times when economic conditions force layoffs, the Federal Unemployment Tax Act provides for half the cost of extended unemployment benefits. Apart from that, a fund is also provided so that the states can borrow from the Federal government, when the originally allocated fund is used up. The whole act is included in the Trade Act of 1974. The act takes the prudence of the country's trade being hampered by foreign policies and also the people who have lost their jobs; it supports the unemployed till the time they find a new job. The period of support has now gone up to 26 weeks.

There has been a little change in the act, though, according to dol.gov a new act named The Trade Adjustment Assistance Re-authorization Act of 2015 (TAARA 2015)(P.L. 114-27, Title IV) reauthorized the Act. TAARA 2015 revised reporting requirements to align performance accountability for the TAA Program with that of other partner programs in the workforce system under the Workforce Innovation and Opportunity Act (WIOA). Here is the summary of the benefit's implementation:

  1. Any worker unemployed without any fault or as a result of layoff or job cuts or closure of the company or unit or department, becomes eligible for the benefit.
  2. Based upon the reports and proofs of the earlier earnings, 36% of the average weekly benefit, of the individuals' average weekly salary is provided.
  3. Self employed and part-time workers are not eligible for the benefit.
  4. The application for the benefit takes 2 weeks to be enforced and is stopped as soon as jobs are created or the beneficiaries get jobs.
  5. The application process and fund distribution are handled by the state unemployment agency.
  6. As per the norms of United States labor department, the benefit is provided for a maximum of 26 weeks, though Federal laws can be modified through the Social Security Act, for a longer extension, which is exactly what the act implies.
Did you know ?
Due to the expiration of the temporary Emergency Unemployment Compensation (EUC) program in 2013, no state currently qualifies to offer more weeks under the permanent Extended Benefits (EB) program.
The base period as instated by the federal program is 26 weeks. However, there are a few states that provide more than the basic unemployed insurance.
States That Provide More Than the Basic Unemployed Insurance
Here are the two states that provide more than the basic 26 week unemployed insurance (UI).
  • Massachusetts – It provides up to 30 weeks of UI in cases where the federal compensation program is absent.
  • Montana – It provides up to 28 weeks of UI
2017 Statistics As Presented by the Trade Adjustment Assistance
Here is the projected number of participants served and the amount per participant
  • The number of participants served are 47,201* and the cost per participant is 14,260*
* - these are projections; the exact number will be out as the fiscal year 2017 ends.
2018 Statistics as Presented by the Trade Adjustment Assistance
Here is the projected number of participants served and the amount per participant
  • The projected number of participants served are 47,201* and the cost per participant is USD 14,260*
* - these are projections; the exact number will be out as the fiscal year 2018 ends.
The common measures of the TAA( Trade Adjustment Assistance) such as the job search, relocation etc. has been revised in the FY 2017 based on the TAARA(Trade Adjustment Assistance Re-authorization Act of 2015) for six common performance indicators.
Performance Indicators Laid Down By the TAARA
According to the dol.gov website, these are the six performance levels as suggested by the TAARA
  • Placement in employment, education, or long term training in the second quarter after exit.
  • Placement in employment, education or long term training in the fourth quarter after exit.
  • Median earnings of those employed in the second quarter after exit.
  • Credential attainment.
  • Measurable skill gains toward credential attainment/employment.
  • Effectiveness in serving employers.
This new deadline extension is going to help thousands of US families tide over, through unemployment insurance, as the economy is still unable to create enough jobs. In every US state, there will be a sigh of relief, as the new extension has already taken effect.