Unemployed workers receiving extended benefits still actively pursued jobs

May 8, 2013

Unemployed workers receiving extended benefits still actively pursued jobs

Many professionals who were provided with unemployment solutions after they were laid off were recently studied by Robert Valletta, a San Francisco Fed economist and Henry Farber, a Princeton University, to see if such benefits played a role in the amount of time they spent in the workforce.

The study, "Do Extended Unemployment Benefits Lengthen Unemployment Spells? Evidence from Recent Cycles in the U.S. Labor Market," released by the Federal Reserve Bank of San Francisco, revealed members of the workforce who were previously fired from their positions were actively pursuing new work despite still receiving benefits from their previous employer.

According to the research, the monthly checks were received by members of the workforce didn't allow them to think they had more time to stay unemployed as they still actively sought after new jobs. The benefit they were collecting "doesn't reduce their probability of finding or accepting a job offer but it keeps them in the labor force," said Valletta in an interview with The Wall Street Journal.

The economy has made times tough for a number of Americans, and extended benefits were thought of as a way to keep those in the labor market and their families afloat as they try to find new employment. The research found giving unemployed workers extended benefits did just that, as many were able to find jobs and others are not slacking off in their job search.

"It didn't seem to reduce the job finding rate," Farber told The WSJ. "They didn't affect people finding jobs quickly. But for people who were unemployed a long-time, it kept them in the labor force."

single-post1333

Ready to chat?
Get in touch today to request a no-obligation savings evaluation.

Testimonials

Working with Marshal Whittey at First Nonprofit has been a great experience. He handles our request as a priority and goes above and beyond to resolve any issues we have in a timely manner. Marshall follows through to the end and ensures our needs are met. He has been a great resource for LSC and our “go to” for any tax questions we may have. With LSC transitioning several facilities into one federal tax identification number, First Nonprofit was able to assist and provide guidance with best practices resolving claims to each entity. Additionally First Nonprofit provided knowledge (information materials) and one on one training to HRS group with best practices to handle claims state adjudicated, fraudulent claims, and appeals. And processing information in the First Nonprofit [unemployment claims] system allows for timely information can be collected.

Lutheran Services Carolinas, Salisbury, NC

My experience with FNP has been wonderful. Unemployment in general is quite confusing and FNP has simplified the process for us. Everyone we have reached out to or worked with has been very helpful and follows up to be sure we understand the information. I am so happy we made the switch to FNP!

Stone Valley Community Charter School, Huntingdon, PA

First Nonprofit smoothed the unemployment perils for our organization during Covid. Without the ability to cap our UI exposure, we would not have been able to weather the storm. The program worked perfectly and we have come out of the pandemic ready to forge on. Thanks FNP!

Jewish Silicon Valley, Los Gatos, CA

My experience with the FNP has been fantastic. The idea of setting funds aside for the unemployment tax liability is a bedrock for nonprofit organizations like mine, namely ASHBA; what is even more advantageous is having the FNP as a custodian of those funds. 100% recommended!

American Saddlebred Horse & Breeders Association, Inc., Lexington, KY

I would like to comment on my experience with FNP….to date our District has saved $1,000’s of dollars by being enrolled in the First Nonprofit program. My only regret is that we did not know about this method of paying unemployment tax years ago….as I had figured about five years

ago, had we enrolled 15-20 years ago, we could have saved our small school district upwards of $500,000 in payments to IDES. Also we would have had a pretty hefty sum of money in our Reserve Account. Thankfully I attended a workshop hosted by First Nonprofit back in 2015 which got the ball rolling!

Beardstown Community Unit School District 15, Beardstown, IL

I have worked with the First Non-Profit Team for many years, and I appreciate the quick response and care that Cecilia and the team provides anytime I have questions. While there are other providers that may provide like services, First Nonprofit will always be my first choice! I appreciate you!

Innovative Services, Inc., Green Bay, WI

First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.

Visually Impaired Preschool Services, Louisville, KY

Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!

Neurologic Music Therapy Services of Arizona, Phoenix, AZ