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CPL’s New Research Finds Sharp Increase in Share of Unemployed/Under-Employed Workers Who Receive UI Benefits in CA

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The UCLA California Policy Lab (CPL) recently released a new analysis of California unemployment insurance (UI) claims as part of a policy briefs series publishing research conducted in partnership with the Labor Market Information Division of the California Employment Development Department.

Overview
Historically, the share of unemployed workers receiving regular UI benefits (recipiency rate) in California has been relatively low (as has also been the case in other states). This Data Point combines administrative data from California’s Employment Development Department (EDD) with monthly Current Population Survey (CPS) data to construct an improved recipiency rate to measure the extent to which unemployed and underemployed Californians are receiving regular UI benefits.

Dr. Till von Wachter, a co-author of the analysis, UCLA economics professor and faculty director at the California Policy Lab, says about this new analysis, “The share of unemployed workers receiving UI benefits tends to rise during economic downturns, but even during the Great Recession, we didn’t approach the high rates that we’re seeing now.”

Three key findings from this new research:
1) The recipiency rate in California has increased dramatically over the course of the crisis, from about 50% in April to nearly 90% in December.  
The analysis found that over 2.5 million unemployed Californians were not receiving regular UI benefits in April and May 2020, and while some of these workers likely received benefits under the Pandemic Unemployment Assistance (PUA) program, at least 500,000 workers did not. As the share of workers receiving regular UI benefits increased, the number of workers not receiving regular UI benefits decreased, hovering at around 250,000 in the last four months of 2020.
2) There are geographic disparities in the rates of UI benefit collection that correlate with income, race and ethnicity, access to technology, and other social and economic factors. In counties with higher median household incomes, a larger share of their unemployed workers tended to receive UI benefits, while a smaller share of unemployed workers received benefits in counties with higher poverty rates.
3) CPL’s Recovery Index highlights substantial county-level differences in the economic recovery. Higher-income counties have recovered more quickly than lower-income counties, while counties with a higher share of Black and Hispanic residents have seen slower recoveries than counties with more White residents.

To see the map which tracks the Labor Market Recovery, click HERE.

To see table code of County Level Measures of Economic Recovery and UI Recipient Rates, click HERE.

To read CPL’s latest policy brief on this issue, click HERE.

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CPL Releases New Research on the Lost Wages Assistance Program in California

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The UCLA California Policy Lab (CPL) recently released a new Data Point focused on the “Lost Wages Assistance” program that started on September 7th in California. After Congress couldn’t come to an agreement about a second stimulus plan, the President put forth this program. CPL’s research team found that about 192,000 California workers will not qualify to receive the $300 benefit, because they do not already receive at least $100 in unemployment insurance benefits. The vast majority (82.5%) of people who will be ineligible to receive the $300 benefit are adults over the age of 20. Over 60% of ineligible claimants are female and over 57% have a high school degree or less.

UCLA Director of the California Policy Lab, Dr. Till von Wachter, told The Sacramento Bee, “While the program will be a temporary boost for unemployed Californians, it’s a 50% reduction from the $600 that unemployed Californians were previously receiving.”

 

 

To read the “Data Point,” click HERE.

To read CPL’s latest policy briefs on this issue, click HERE.

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CPL Latest Brief Highlights Unemployment Insurance Claims in California During the COVID-19 Pandemic

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Earlier this month, the UCLA California Policy Lab released their sixth policy brief which focuses on close to real-time information on daily initial unemployment insurance (UI) claims. The latest policy brief, “An Analysis of Unemployment Insurance Claims in California During the COVID-19 Pandemic,” focuses on the increasing number of workers who are returning to work and seeing their unemployment claims either reduced or denied altogether as a result.

Key Research Findings:

1. More than Half of Recent Unemployment Claims are from Californians who are RE-Opening their Claims.

2. The Number and share of additional claimants varies significantly by industry.

3. Nearly one-third of California workers have filed for UI benefits since the start of the COVID-19 crisis in mid-March.

4. For the week ending July 11th, 3.28 million claimants, or about 17% of the CA labor force, were paid unemployment insurance benefits.

5. The share of paid UI claimants receiving partial benefits (due to reporting some work earnings) has risen substantially since early May.

6. As illustrated in our Data Point, without the $600 per week additional benefits from FPUC, half of all individuals received payments below the Federal Poverty Level.

7. In the week ending July 25th, only 63% of new initial claimants reported they expect to be recalled. The gap in recall expectations between Black claimants and others’ which was seen earlier in the crisis appears to have narrowed in recent weeks.

To read the press release, click HERE.

To read the full report, click HERE.

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California Policy Lab Releases Brief on California Unemployment Insurance Claims During Pandemic

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The California Policy Lab (CPL), in partnership with the Labor Market Information Division of the California Employment Development Department, has been analyzing daily initial Unemployment Insurance claims during this pandemic. The COVID-19 crisis has led to historically unprecedented increases in claims filed in California since the start of the crisis in mid-March. The findings provide an in-depth and near real-time look at how the COVID-19 crisis is impacting various industries, regions, counties, and types of workers throughout California.

A Key Finding:  The added $600 per week from the Federal Pandemic Unemployment Compensation (FPUC) program has played a substantial role in preventing near-poverty income levels among UI claimants.

For more key findings, charts, and information about this report, click HERE.

Download the full policy brief HERE.

Check out recent coverage on this research from The Sacramento Bee HERE.

Check out previous posts about CPL research HERE.

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