Southland residents who receive unemployment insurance must actively seek work from July 11 in order to keep their benefits – CBS Los Angeles
LOS ANGELES (CBSLA) – Gov. Gavin Newsom’s administration announced Thursday that starting July 11, Californians receiving unemployment insurance will have to actively seek employment in order to continue receiving benefits.
Federal law requiring people to apply for jobs while unemployed was temporarily lifted during the pandemic due to the historic number of closed businesses. As of March 2020, the California Employment Development Department also allows residents to waive the job search rule.
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However, on Thursday, ministry officials announced that the exception would end in early July.
California was not the only state to make significant changes to its unemployment insurance requirements during the pandemic. Many states have been forced to temporarily change their policies to offset the massive financial impact of COVID-19 closures on state economies and the high number of jobless claims resulting from the recession.
EDD has paid more than $ 128 million in benefits to California residents since the start of the pandemic, an amount that comes with $ 20 million in more unemployment claims.
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For the millions of people who have received or are still receiving unemployment benefits in California, the normal cap of $ 450 per week has been increased with an additional $ 300 per week pandemic relief provided by Congress. Despite the end of the job search exception, the additional federal assistance of $ 300 will continue until September.
While 25 other states have stopped providing the additional $ 300 per week of benefits due to a lack of people returning to the workforce, Newsom said the move is more a matter of politics than economics.
Still, some companies in the south have said they are struggling to fill available positions, especially in the service sector.
“There is currently a problem of high demand, but low supply. And it’s not just in terms of food, but also in terms of labor, ”Phillip Wang, co-owner of Bopomofo Café in San Gabriel, told CBSLA. “It was kind of a challenge to say, ‘Hey, today the pandemic is over. Come in, but as a business owner it’s not that easy.
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At 8.3%, California is second for the highest unemployment rate in the country. This is despite the addition of 390,000 jobs since February and representing 38% of all new jobs created in the United States in April.