Know it Alls!

The other day I entered into a "philosophical" discussion with four other individuals. The subject that came up was UNEMPLOYMENT COMPENSATION. This topic seems to surface quite frequently. Now, I can't speak for other states, but I do have some familiarity on how it works here in Illinois.

The main misconception during the debate was that unemployed persons can collect compensation for up to three years; the payments come from the federal government, and not the state; the Illinois fund is 9 billion dollars in the hole; and finally, most of the people on unemployment would rather be there on unemployment, rather than work for a living.

A lot of this misinformation being poured into these closed minded individuals of course, comes from our media, who needs to make a boring subject into something interesting in order to increase viewership and cause debate. I found it a shame that one of the individuals involved in the discussion, who is normally well resourced, but that day he didn't have his facts correct and just looked like a fool to the rest of the group.

The facts are, that as of January 17, 2011 the State of Ilinois had $89 million dollars in its fund for unemployment compensation, and it is continually being added too, by every employer, on behalf of every employee, each and every pay day. With a 9.5% unemployment rate in the state, it means that the rest of the 90.5% EMPLOYED PERSONS, their employers are still contributing to the unemployment compensation fund.

If the unemployment compensation fund cannot meet its compensation obligations, due to a short fall, then the state will borrow money from the Federal Government at zero percent interest. However, this zero percent interest rate is expected to expire soon, and an low interest rate will then be applied.

The person who goes on unemployment initially is granted 26 weeks of compensation (six months). This should be enough time to find unemployment in a plentiful job market. However, today this is not true as there aren't as many jobs out there to be had. Most of this problem has to do with what skill sets are available, versus what skill sets the job market needs, and presently there is a difficulty with being able to make that match.

When the initial 26 weeks run out, there is an extension available for an addition 13 weeks. However, this comes and goes with different legislations being enacted. The next opportunity for addtional compensation is via an additionl EMERGENCY grant of 20 more weeks.

Now what happens after that?

Well, there is an additional opportunity to qualify for another year of benefits. And that's exactly what it is, a benefit. Something the indiidual has a RIGHT to apply for, and if qualified, be granted. But in order to qualify the individual MUST have earned compensation during the previous year, while on unemployment, at least an amount equal to 3 times there weekly unemployment benefit amount. So, if a person was getting $333.00 per week while on unemployment, they would have had to earn a minimum of $999.00, while on unemployment from outside sources.

Also, each individual is allowed to earn up to half of their weekly benefit amount without reducing their benefit amount. So if a person was collecting $333.00 a week from unemployment, they could earn an additional $166.50 without a reduction in unemployment compensation. So the total weekly abount a person could earn would be $499.50, i.e. $333.00 unemployment, and $166.50 from other outside sources. Any dollar earned above that $166.50 amount would be deducted dollar for dollar from their weekly unemployment compensation.

Why do we have this benefit? Because as history shows, employers would fire people for no reason as they saw fit, whenever it suited them, without any penalties. Now according to one of the individuals in the discussion, who was a business owner with many employees he stated that the employer pays into the funds on behalf of each employee, and that amount can increase and decrease depending on how many of his employees are or have been on unemployment. In order to keep his percentage rate low, he would not lay off employees, he would just make their life so miserable, that they would simply quit, and if they applied for unemployment, he would surely fight it to ensure that his rate did not increase.

I have heard of this concept of poor management practice before, so it is not something new to me. However, individuals who fall into this category ARE NOT included in the unemployment numbers, so it would be interesting to know how many are out there, because they might now be on the Public Aid rolls instead of getting the unemployment compensation, job coaching, and job counseling plus all of the other things the unemployment office has to offer.

No one wants to be unemployed. Once your let go from you're job, you can't pay your bills, your rent or mortgage, your children's tuitions, if they are in private schools, which only cause them to be placed in the public school system which puts an additional strain on that system also, and you have trouble putting food on the table. This now puts the folks on FOOD STAMPS, straining that system. You can't pay the mortgage, then you go into default, putting a strain on that system. This causes you to move yourself into a lower social structure by moving where you CAN afford to live.

In conclusion, when dealing with this well misimformed and educated group, its very difficult to have a battle of wits, with folks who are so totally unarmed.......Hopefully this blog will suppply some education and information that we can all learn from.