December 3, 2021

Millions of Californians about to lose unemployment benefits as federal payment cutoff looms

SAN FRANCISCO (KGO) — California’s economic system is slowly coming again to life, gaining practically one million payroll jobs over the previous 12 months. But, about three million Californians are nonetheless accumulating unemployment — And for about two million of them, pandemic benefits are coming to an abrupt finish on September 4.

Some say it is like falling off a cliff, and the Employment Growth Division is warning of us to be prepared. Millions who misplaced their jobs simply because of the pandemic are about to lose their benefits, too.

Michael Gumora was writing a “rideshare blog,” incomes cash by referring drivers to Uber and Lyft. He’d purchased himself unemployment insurance coverage years in the past, so when revenue dried up within the pandemic, the EDD paid his benefits.

However now, “It’s done, it’s run out, it’s over. I’ll have to get creative once again,” he says.

“Very grateful there was some income,” he added.

Now hundreds of thousands of Californians are about to be minimize off from particular pandemic benefits that expire on Sept. 4.

“Right now we have about three million Californians on some form of unemployment insurance,” says former EDD director Michael Bernick. “If no changes are made between now and September fourth roughly… two million Californians will see their benefits end.”

VIDEO: Unemployed individuals should search for work to proceed receiving benefits, EDD says

Among the many largest modifications: the federal authorities will cease including that $300-per-week bonus to everybody’s unemployment checks.

Additionally the federal authorities will finish the first-of-its-kind program that has paid unemployment benefits to non-traditional employees. It means no extra benefits for gig employees, impartial contractors, and the self-employed.

Additionally expiring is a program recognized as Pandemic Emergency Unemployment Compensation (PEUC), which prolonged benefits up to 53 weeks for these with expired claims.

EXCLUSIVE: BofA says it needs out of unemployment benefits contract as EDD renews

The EDD is now urging everybody on unemployment to discover a job.

Proper now that may appear simple – the state added practically a million payroll jobs over the previous 12 months. Nonetheless, some say it is not that straightforward.

Bernick, who now works as the analysis director for the California Workforce Affiliation, says the economic system has modified because the pandemic: many companies shut down, employees moved. Many fear about getting sick on the job – or sending youngsters off to faculty.

“It’s not such an easy process to say, well we have 3 million on unemployment and we have all these jobs and people can immediately fill them. It’s not an easy match in terms of location, in terms of skills, in terms of aptitudes.”

VIDEO: California lawmaker says newest EDD issues are ‘past unacceptable’

As for Michael Gumora, he says rideshare giants not pay him to recruit drivers, so he is adapting his enterprise, and considering about what’s subsequent.

“I’ll mop floors if there’s a job opening,” he says.

Now, a possible hope for these nonetheless out of work: the Biden administration says states could use any leftover unemployment funds to proceed some of these pandemic benefits. Up to now, no phrase if California is taking over that provide.

Check out extra tales and movies by Michael Finney and seven On Your Aspect.

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