Weekly Unemployment Compensation Plummets After Federal Supplement Expires

The New Jersey Department of Labor and Workforce Development paid out $316 million in unemployment benefits for the week ending Aug. 22, a sharp decline in the weekly payment total because of the expiration of the $600 weekly supplement known as Federal Pandemic Unemployment Compensation (FPUC).

FPUC expired on July 25, and Congress has failed to extend it. It provided $600/week to anyone eligible for unemployment, starting April 4, and allowed New Jersey to put $8.4 billion in additional benefits into the hands of the unemployed and underemployed hit by COVID-19, on top of their regular weekly benefit. On a typical week at the height of the program, New Jerseyans would collectively receive more than $500 million in FPUC payments, compared with just $70 million in back-week payments made last week. 

The Labor Department on Wednesday announced it had applied for a grant through FEMA’s Lost Wages Supplemental Assistance (LWA) program, which provides up to $300 per week for a limited time to eligible individuals, on top of other unemployment compensation they receive. 

 “While we will take whatever steps are necessary to get as much federal assistance to unemployed New Jersey workers as possible, the FEMA program provides half the benefit and only to a fraction of unemployed individuals and families struggling under the weight of this continuing pandemic,” said Labor Commissioner Robert Asaro-Angelo. “It will end as soon as the funding runs out in a few weeks, it excludes people whose unemployment is not a direct result of COVID, and it requires a separate application process that has not even been created yet.”

“It makes far more sense for Congress to extend the $600 supplement, which would require us to literally flip a switch to get those benefits flowing again,” the Commissioner said.

For the week ending Aug. 22, the Labor Department received 20,175 new unemployment applications, a 21% decline from the prior week.

Of the total number of unemployment applications received, 1.34 million have met the monetary requirements for eligibility. Of those, 96% have received payment.

The number of New Jersey workers who have exhausted unemployment and have claimed extended benefits rose to 16,123 with the total payout to this group exceeding $37 million. Up to 20 weeks of extended benefits kicks in for eligible claimants when all other federal and state benefits have been exhausted.

The weekly totals of new unemployment claims are:    

Below is the weekly breakdown of payments (in millions):    

NA: Benefit not applicable during the indicated weeks.   

FPUC, PUA and PEUC are federal programs authorized by Congress under the CARES Act. PUA provides benefits through the end of the year; maximum eligibility is 46 weeks, including extended benefits. PEUC provides 13 weeks of federal benefits for those who exhaust 26 weeks of state unemployment. State extended benefits automatically offers an additional 20 weeks of assistance once PEUC ends.

*This represents the final number for the week ended Aug. 22. The number listed for NJ by US Department of Labor – 19,348 – is based on advanced reporting.   

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