Unemployment extension may brighten local economy

Unemployment extensions could help local people down on their luck and boost the Sanders County economy.

Gov. Brian Schweitzer signed an agreement at the beginning of the month that will give about 8,500 unemployed Montana residents access to the Unemployment Benefits Extension, recently passed by the federal government. The extension allows for an additional four-to-13 weeks of benefits to individuals who have exhausted an unemployment claim on or after May 1, 2007 and who are not eligible to begin a new unemployment insurance claim, according to a press release. Because the extension is federally-funded, there is no cost to employers.

In 2007, 5.9 percent of Sanders County was unemployed — 2.8 percent higher than the 3.1 percent Montana state average, which is ranked 15th nationally. Unemployment rates tend to fluctuate based on a number of factors, including what time of year it is. For example, in January of this year the unemployment rate in Sanders County was sitting at 10.4 percent, but by May it had dropped down to 6.5 percent.

Debbie Krantz, manager of the Sanders County Workforce Center, said that a lot of the discrepancy between rates in the winter and rates during the spring and summer have to do with seasonal employment.

“Seasonal employment is really important in our area,” she said.

Krantz also said that some people in certain seasonal occupations, like construction, face intermittent periods of unemployment. Someone in the construction industry might have work on a site for a couple months, but when it’s done they’re out of work for a period of time. Other people lose their jobs for a variety of different reasons, including having a business close, and it can take a while for those individuals to get back on their feet.

Krantz said the unemployment extension benefits are going to help people who have exhausted their benefits already. An individual who has exhausted all of their regular unemployment insurance benefits and is not eligible for a new unemployment insurance claim in Montana or another state can file a claim for an extension.

The duration of the extension claim would be either 13 weeks or 50 percent of the regular claim duration, whichever is less, according to the Emergency Unemployment Compensation Fact Sheet. This means that if an individual’s regular claim was eligible for 22 weeks, their extension claim would be eligible for 11 weeks of benefits.

Roy Mulvaney, Administrator of Montana’s Unemployment Insurance Division, said that, since last Wednesday, they have already processed 1,189 claims, with 56 percent of the applications filed through the state’s unemployment Web site, UI4U.mt.gov.

Mulvaney said this will help people who are in a bad situation as well as give the economy a boost. Payments will go into the local economy for food and rent, and that money turns over about 2.5 times in the economy, he explained. The money may also ease the minds of worried, unemployed workers.

“Losing a job is the most stressful situation a person can face, other than losing a loved one,” Mulvaney said.

The extension will pay the same weekly, benefit amount as an individual’s last regular claim. The program also offers a reach back provision, which allows someone whose claim has expired or who exhausted their claim on or after May 5, 2007, is currently unemployed and is not currently eligible for a regular unemployment insurance claim, to apply for emergency benefits, according to the fact sheet.

The deadline for extension claims is March 22, 2009 and the last date the state of Montana can make payments to claimants is June 27, 2009, so the program is only temporary.

Krantz said that people have been getting letters in the mail to let them know if they’re eligible. So far, 7,000 letters have been sent out (to Montana residents???????) since the first of the month.

“There will be certain criteria they’ll have to meet if they’re eligible for this,” she explained.

Krantz believes this is a great opportunity and it will give individuals a little more time and a little more of an extension so they can be able to find work.

The Sanders County Workforce Center helps individuals find careers by helping search for jobs and teaching resume building and interview skills. The center also keeps lists of jobs available and determines whether or not certain people are eligible for training programs that they offer.

Mulvaney said there are two ways in which someone can file their unemployment insurance extension claims. They can do it on the Web site, which he recommends because it is available 24/7, or they can use the two call centers. The number in Billings is 247-1000 and the one in Helena is 444-2545.