By Keith Whitcomb Jr.
Staff Writer
MONTPELIER, Vt. — The state’s unemployment rate has dropped to a level where the length one can be on unemployment is reduced, however the numbers don’t reflect reality, says the labor commissioner.
The Vermont Department of Labor announced Monday that come Saturday, Vermonters will no longer be able to get into the “High Extended Benefit” program. The determination was made by the United States Department of Labor after Vermont’s unemployment rate went from 8.3% in July to 4.8% in August.
When a state’s unemployment rate is high enough, it triggers the State Extended Benefits, which are normally 13 weeks of unemployment insurance. Under High Extended Benefits, it’s 20 weeks, according to the Vermont DOL.
Labor Commissioner Michael Harrington said at a Tuesday press conference that up front, few will be affected by the change, however the longer others are on unemployment, the more people will be involved. He said DOL will notify people who stand to lose the benefit. Also, it’s likely the unemployment rate will continue to drop, further shortening the length of the benefit and therefore affecting more people.
He said the unemployment rate is based on federal data and surveys asking how often people are looking for work and whether they could work if a job were offered to them. The COVID-19 pandemic has complicated the picture, however, and while the state has done what it can to accommodate people by waiving work-search requirements and the like, the actual unemployment rate is higher than what’s being used to calculate unemployment benefits. He said the real rate is likely between 8% and 10%.
A letter, he said, has been sent to Vermont’s Congressional delegation as well as the General Assembly about this matter.
Tom Donahue, chief executive officer of BROC Community Action, said Tuesday that the dropping unemployment numbers don’t mean things are getting better for many.
“It doesn’t accurately reflect the impact out there in the labor force where a lot of people aren’t able to job search right now or accept a position because of the changes in their home,” Donahue said, adding that many have had to leave the workforce because of child care and remote education needs, or can’t get a new job because they’re at-risk for serious COVID-19 complications.
“The labor force has been declining significantly between July and August, and that’s sort of reflected in the unemployment numbers, even though I don’t think it reflects the true number of people unemployed,” he said. “Therefore, you have a lot more people unemployed who are going to be in need of income.”
BROC maintains a food pantry and is a hub for a number of social services, such as fuel assistance. Donahue said he expects his organization and others like it will be busier helping people in need.
“A pandemic has a whole set of its own rules which are affecting people’s ability to remain in the workforce, and the workforce is plummeting,” he said. “Those people still need unemployment benefits while they weather the storm and family dynamics have prohibited them from being part of the labor force. It’s going on for an extended period of time, but the unemployment benefits are not.”
According to DOL, those who’ve exhausted their benefits and need help should reach out to the Workforce Development Division at [email protected] or by contacting their local career resource office. Visit the DOL online at labor.vermont.gov/workforce-development for more information.
keith.whitcomb @rutlandherald.com
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