May 8, 2013
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."
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We first started using First Nonprofit’s Unemployment Savings Program when we were a small startup nonprofit. We didn’t have an HR department and needed expertise in the event that an unemployment claim was made. We knew we were eligible to be a reimbursing employer, but weren’t sure how to navigate that process. They made it easy to set things up, plan for, and then manage claims when they came at a very reasonable cost. The amount of time and stress they’ve saved us dealing with all this has been worth way more than the cost. We’ve now grown to a large nonprofit and do have an HR department but have no plans to stop using their services. I highly recommend them to every nonprofit I come into contact with!
Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.
Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.
It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios.
NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.
Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.
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!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.