State agencies are trying to address technical shortcomings that led to as much as $135 billion in fraud during the pandemic. But declining and volatile federal funding for administration is impeding those efforts.
As of July, approximately 440,000 Louisianans have voluntarily left their jobs this year, the highest total for the first seven months of a year since 2000. But experts say mobility signals a healthy economy, albeit a challenging one for employers.
The Labor Department has increased its previous estimate of pandemic-era unemployment benefits fraud by nearly $30 billion. The agency has opened more than 190,000 investigations and charged more than 1,000 with fraud.
An audit found that the state’s unemployment agency likely paid between $441 million and $466 million in fake claims from March 2020 to March 2022. It also flagged numerous legitimate claimants as fraud.
A federal judge has approved a settlement between the state and 54 residents who had been on a work-release program but lost COVID-related unemployment benefits when the pandemic stopped their work opportunity.
The economy keeps adding them by the hundreds of thousands. But those big numbers don’t tell the whole story.
Staff shortages and a rush to distribute funds generated confusion and mistakes, resulting in unemployment benefit overpayments to thousands of Alabamians. Now, the state wants its money back.
The state’s Wage Theft Task Force has helped 265 workers to recoup pay over the last two-and-a-half years during the pandemic and has brought charges against a dozen businesses for wage fraud.
The state’s candidates for governor are addressing jobs, transportation, education and small businesses, but some voters feel they avoid talking about the most-pressing issues, like inflation or the cost of living.
While new leadership and a quick economic rebound have allowed the state’s Employment Department to better address new claims and phone calls, the agency still has outstanding issues to be resolved.
While the unemployment rates are close to pre-pandemic levels, employers are still struggling to fill positions. Statewide, businesses reported about 30,000 fewer workers than in February 2020.
The state’s Employment Development Department says that it was flooded with 47,000 suspicious claims in early May, which would have amounted to as much as $560 million. There has not yet been word who is behind the fraudulent claims.
The state saw a civilian labor force gain of 14,000 and an employment increase of 19,000 last month. April was the 12th consecutive month of job growth and 10th consecutive month of unemployment decline for the state.
Earlier this year, the IRS walked back its selfie requirement for identity verification after a swell of privacy concerns; but several states continue to use ID.me to collect portraits, which could be stored for years.
Last month, the national jobless rate fell to the lowest it has been since the 1960s, but the intense labor demand could spark even faster wage growth. Currently, inflation is at its highest in four decades.
Despite declining COVID numbers, the state’s unemployment numbers remain well above the national average. Businesses are still cautious about hiring and thousands of workers are quitting their jobs.
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