Unemployment Insurance Measures Included in the American Recovery and Reinvestment Act of 2009, as of July 2009
Gao ID: GAO-09-942R July 27, 2009This letter is in response to Congressional request to provide information on measures in the American Recovery and Reinvestment Act of 2009 (Recovery Act) to augment unemployment compensation. Unemployment has risen sharply in the current recession, with the June 2009 rate reaching 9.5 percent of the labor force nationally; 15 states and the District of Columbia have unemployment rates exceeding 10 percent. The Recovery Act enacted measures that expanded unemployment compensation benefits for individuals and provided additional funding to states to pay and administer these benefits. These measures include an extension of benefits under Extended Unemployment Compensation (EUC) through 2009; Unemployment Insurance (UI) "modernization" grants to states that expand eligibility according to specific criteria; an increase in weekly benefits of $25; and an exemption of the first $2,400 in unemployment benefits received by individuals in 2009 from taxation.
GAO-09-942R, Unemployment Insurance Measures Included in the American Recovery and Reinvestment Act of 2009, as of July 2009
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GAO-09-942R:
United States Government Accountability Office:
Washington, DC 20548:
July 27, 2009:
The Honorable Mitch McConnell:
Republican Leader:
United States Senate:
Subject: Unemployment Insurance Measures Included in the American
Recovery and Reinvestment Act of 2009, as of July 2009:
Dear Senator McConnell:
This letter is in response to your request to provide information on
measures in the American Recovery and Reinvestment Act of 2009
(Recovery Act) to augment unemployment compensation.[Footnote 1] Tables
identifying these measures, along with the most recent unemployment
statistics nationally and by state are enclosed.
Unemployment has risen sharply in the current recession, with the June
2009 rate reaching 9.5 percent of the labor force nationally; 15 states
and the District of Columbia have unemployment rates exceeding 10
percent (see Table 1). The Recovery Act enacted measures that expanded
unemployment compensation benefits for individuals and provided
additional funding to states to pay and administer these benefits.
These measures include an extension of benefits under Extended
Unemployment Compensation (EUC) through 2009; Unemployment Insurance
(UI) "modernization" grants to states that expand eligibility according
to specific criteria; an increase in weekly benefits of $25; and an
exemption of the first $2,400 in unemployment benefits received by
individuals in 2009 from taxation (see Table 2).
The Department of Labor reports that, as of the week ending July 17,
2009, total payments for extended EUC equaled $5.1 billion and for the
increased $25 weekly benefit totaled $4.0 billion (see Table 2). As of
July 24, 2009, 28 states and the District of Columbia have been
approved for modernization grants totaling $2.2 billion (see Table 3).
Table 1: Civilian Unemployment Statistics by State, June 2009:
State: Alabama;
Percentage of labor force: June 2009: 10.1;
Percentage of labor force: May 2009: 9.8;
Number of unemployed (thousands): June 2009: 215.6;
Number of unemployed (thousands): May 2009: 208.3.
State: Alaska;
Percentage of labor force: June 2009: 8.4;
Percentage of labor force: May 2009: 8.3;
Number of unemployed (thousands): June 2009: 30.4;
Number of unemployed (thousands): May 2009: 29.7.
State: Arizona;
Percentage of labor force: June 2009: 8.7;
Percentage of labor force: May 2009: 8.2;
Number of unemployed (thousands): June 2009: 274.2;
Number of unemployed (thousands): May 2009: 258.6.
State: Arkansas;
Percentage of labor force: June 2009: 7.2;
Percentage of labor force: May 2009: 7.0;
Number of unemployed (thousands): June 2009: 98.8;
Number of unemployed (thousands): May 2009: 95.0.
State: California;
Percentage of labor force: June 2009: 11.6;
Percentage of labor force: May 2009: 11.6;
Number of unemployed (thousands): June 2009: 2146.2;
Number of unemployed (thousands): May 2009: 2152.8.
State: Colorado;
Percentage of labor force: June 2009: 7.6;
Percentage of labor force: May 2009: 7.6; [Empty];
Number of unemployed (thousands): June 2009: 204.0;
Number of unemployed (thousands): May 2009: 207.0.
State: Connecticut;
Percentage of labor force: June 2009: 8.0;
Percentage of labor force: May 2009: 8.0; [Empty];
Number of unemployed (thousands): June 2009: 149.8;
Number of unemployed (thousands): May 2009: 150.4.
State: Delaware;
Percentage of labor force: June 2009: 8.4;
Percentage of labor force: May 2009: 8.1;
Number of unemployed (thousands): June 2009: 36.9;
Number of unemployed (thousands): May 2009: 35.6.
State: District of Columbia;
Percentage of labor force: June 2009: 10.9;
Percentage of labor force: May 2009: 10.7;
Number of unemployed (thousands): June 2009: 35.9;
Number of unemployed (thousands): May 2009: 35.2.
State: Florida;
Percentage of labor force: June 2009: 10.6;
Percentage of labor force: May 2009: 10.3;
Number of unemployed (thousands): June 2009: 970.1;
Number of unemployed (thousands): May 2009: 953.6.
State: Georgia;
Percentage of labor force: June 2009: 10.1;
Percentage of labor force: May 2009: 9.6;
Number of unemployed (thousands): June 2009: 483.4;
Number of unemployed (thousands): May 2009: 458.9.
State: Hawaii;
Percentage of labor force: June 2009: 7.4;
Percentage of labor force: May 2009: 7.4;
Number of unemployed (thousands): June 2009: 47.7;
Number of unemployed (thousands): May 2009: 48.0.
State: Idaho;
Percentage of labor force: June 2009: 8.4;
Percentage of labor force: May 2009: 7.8;
Number of unemployed (thousands): June 2009: 62.7;
Number of unemployed (thousands): May 2009: 58.6.
State: Illinois;
Percentage of labor force: June 2009: 10.3;
Percentage of labor force: May 2009: 10.1;
Number of unemployed (thousands): June 2009: 683.3;
Number of unemployed (thousands): May 2009: 670.3.
State: Indiana;
Percentage of labor force: June 2009: 10.7;
Percentage of labor force: May 2009: 10.6;
Number of unemployed (thousands): June 2009: 343.0;
Number of unemployed (thousands): May 2009: 341.9.
State: Iowa;
Percentage of labor force: June 2009: 6.2;
Percentage of labor force: May 2009: 5.7;
Number of unemployed (thousands): June 2009: 104.1;
Number of unemployed (thousands): May 2009: 95.8.
State: Kansas;
Percentage of labor force: June 2009: 7.0;
Percentage of labor force: May 2009: 7.0;
Number of unemployed (thousands): June 2009: 105.8;
Number of unemployed (thousands): May 2009: 107.3.
State: Kentucky;
Percentage of labor force: June 2009: 10.9;
Percentage of labor force: May 2009: 10.7;
Number of unemployed (thousands): June 2009: 226.1;
Number of unemployed (thousands): May 2009: 221.3.
State: Louisiana;
Percentage of labor force: June 2009: 6.8;
Percentage of labor force: May 2009: 6.6;
Number of unemployed (thousands): June 2009: 140.9;
Number of unemployed (thousands): May 2009: 135.6.
State: Maine;
Percentage of labor force: June 2009: 8.5;
Percentage of labor force: May 2009: 8.3;
Number of unemployed (thousands): June 2009: 59.9;
Number of unemployed (thousands): May 2009: 58.1.
State: Maryland;
Percentage of labor force: June 2009: 7.3;
Percentage of labor force: May 2009: 7.2;
Number of unemployed (thousands): June 2009: 215.2;
Number of unemployed (thousands): May 2009: 212.4.
State: Massachusetts;
Percentage of labor force: June 2009: 8.6;
Percentage of labor force: May 2009: 8.2;
Number of unemployed (thousands): June 2009: 295.6;
Number of unemployed (thousands): May 2009: 282.0.
State: Michigan;
Percentage of labor force: June 2009: 15.2;
Percentage of labor force: May 2009: 14.1;
Number of unemployed (thousands): June 2009: 740.1;
Number of unemployed (thousands): May 2009: 681.4.
State: Minnesota;
Percentage of labor force: June 2009: 8.4;
Percentage of labor force: May 2009: 8.1;
Number of unemployed (thousands): June 2009: 249.1;
Number of unemployed (thousands): May 2009: 240.8.
State: Mississippi;
Percentage of labor force: June 2009: 9.0;
Percentage of labor force: May 2009: 9.7;
Number of unemployed (thousands): June 2009: 116.3;
Number of unemployed (thousands): May 2009: 127.3.
State: Missouri;
Percentage of labor force: June 2009: 9.3;
Percentage of labor force: May 2009: 9.0;
Number of unemployed (thousands): June 2009: 278.3;
Number of unemployed (thousands): May 2009: 270.9.
State: Montana;
Percentage of labor force: June 2009: 6.4;
Percentage of labor force: May 2009: 6.3;
Number of unemployed (thousands): June 2009: 31.9;
Number of unemployed (thousands): May 2009: 31.5.
State: Nebraska;
Percentage of labor force: June 2009: 5.0;
Percentage of labor force: May 2009: 4.8;
Number of unemployed (thousands): June 2009: 49.1;
Number of unemployed (thousands): May 2009: 47.2.
State: Nevada;
Percentage of labor force: June 2009: 12.0;
Percentage of labor force: May 2009: 11.2;
Number of unemployed (thousands): June 2009: 167.4;
Number of unemployed (thousands): May 2009: 158.0.
State: New Hampshire;
Percentage of labor force: June 2009: 6.8;
Percentage of labor force: May 2009: 6.5;
Number of unemployed (thousands): June 2009: 50.1;
Number of unemployed (thousands): May 2009: 48.5.
State: New Jersey;
Percentage of labor force: June 2009: 9.2;
Percentage of labor force: May 2009: 8.8;
Number of unemployed (thousands): June 2009: 420.8;
Number of unemployed (thousands): May 2009: 400.0.
State: New Mexico;
Percentage of labor force: June 2009: 6.8;
Percentage of labor force: May 2009: 6.5;
Number of unemployed (thousands): June 2009: 64.9;
Number of unemployed (thousands): May 2009: 62.4.
State: New York;
Percentage of labor force: June 2009: 8.7;
Percentage of labor force: May 2009: 8.2;
Number of unemployed (thousands): June 2009: 854.2;
Number of unemployed (thousands): May 2009: 799.7.
State: North Carolina;
Percentage of labor force: June 2009: 11.0;
Percentage of labor force: May 2009: 11.1;
Number of unemployed (thousands): June 2009: 502.3;
Number of unemployed (thousands): May 2009: 507.0.
State: North Dakota;
Percentage of labor force: June 2009: 4.2;
Percentage of labor force: May 2009: 4.3;
Number of unemployed (thousands): June 2009: 15.5;
Number of unemployed (thousands): May 2009: 15.9.
State: Ohio;
Percentage of labor force: June 2009: 11.1;
Percentage of labor force: May 2009: 10.8;
Number of unemployed (thousands): June 2009: 661.7;
Number of unemployed (thousands): May 2009: 646.5.
State: Oklahoma;
Percentage of labor force: June 2009: 6.3;
Percentage of labor force: May 2009: 6.4;
Number of unemployed (thousands): June 2009: 112.1;
Number of unemployed (thousands): May 2009: 112.6.
State: Oregon;
Percentage of labor force: June 2009: 12.2;
Percentage of labor force: May 2009: 12.2;
Number of unemployed (thousands): June 2009: 242.0;
Number of unemployed (thousands): May 2009: 243.6.
State: Pennsylvania;
Percentage of labor force: June 2009: 8.3;
Percentage of labor force: May 2009: 8.3;
Number of unemployed (thousands): June 2009: 537.0;
Number of unemployed (thousands): May 2009: 534.8.
State: Rhode Island;
Percentage of labor force: June 2009: 12.4;
Percentage of labor force: May 2009: 12.1;
Number of unemployed (thousands): June 2009: 70.7;
Number of unemployed (thousands): May 2009: 68.4.
State: South Carolina;
Percentage of labor force: June 2009: 12.1;
Percentage of labor force: May 2009: 12.0;
Number of unemployed (thousands): June 2009: 265.0;
Number of unemployed (thousands): May 2009: 263.6.
State: South Dakota;
Percentage of labor force: June 2009: 5.1;
Percentage of labor force: May 2009: 5.0;
Number of unemployed (thousands): June 2009: 22.6;
Number of unemployed (thousands): May 2009: 22.3.
State: Tennessee;
Percentage of labor force: June 2009: 10.8;
Percentage of labor force: May 2009: 10.7;
Number of unemployed (thousands): June 2009: 328.2;
Number of unemployed (thousands): May 2009: 325.3.
State: Texas;
Percentage of labor force: June 2009: 7.5;
Percentage of labor force: May 2009: 7.1;
Number of unemployed (thousands): June 2009: 899.7;
Number of unemployed (thousands): May 2009: 843.4.
State: Utah;
Percentage of labor force: June 2009: 5.7;
Percentage of labor force: May 2009: 5.4;
Number of unemployed (thousands): June 2009: 78.1;
Number of unemployed (thousands): May 2009: 74.9.
State: Vermont;
Percentage of labor force: June 2009: 7.1;
Percentage of labor force: May 2009: 7.4;
Number of unemployed (thousands): June 2009: 25.4;
Number of unemployed (thousands): May 2009: 26.5.
State: Virginia;
Percentage of labor force: June 2009: 7.2;
Percentage of labor force: May 2009: 7.1;
Number of unemployed (thousands): June 2009: 298.9;
Number of unemployed (thousands): May 2009: 297.8.
State: Washington;
Percentage of labor force: June 2009: 9.3;
Percentage of labor force: May 2009: 9.1;
Number of unemployed (thousands): June 2009: 330.8;
Number of unemployed (thousands): May 2009: 325.4.
State: West Virginia;
Percentage of labor force: June 2009: 9.2;
Percentage of labor force: May 2009: 8.4;
Number of unemployed (thousands): June 2009: 72.8;
Number of unemployed (thousands): May 2009: 67.0.
State: Wisconsin;
Percentage of labor force: June 2009: 9.0;
Percentage of labor force: May 2009: 8.9;
Number of unemployed (thousands): June 2009: 278.3;
Number of unemployed (thousands): May 2009: 276.4.
State: Wyoming;
Percentage of labor force: June 2009: 5.9;
Percentage of labor force: May 2009: 5.0;
Number of unemployed (thousands): June 2009: 17.2;
Number of unemployed (thousands): May 2009: 14.7.
Total: United States;
Percentage of labor force: June 2009: 9.5;
Percentage of labor force: May 2009: 9.4;
Number of unemployed (thousands): June 2009: 14729.0;
Number of unemployed (thousands): May 2009: 14511.0.
Source: Bureau of Labor Statistics.
Note: June 2009 data are preliminary.
[End of table]
Table 2: Unemployment Insurance: Major Recovery Act Provisions:
Measures:
* Extend through December 31, 2009 the Extended Unemployment
Compensation (EUC) program. Section 2001, 123 Stat. 436-37;
* Provide up to $7 billion total in "modernization" grants to states
whose UI rules contain specific provisions that broaden benefit
eligibility. Section 2003, 123 Stat. 439-43;
* Increase weekly benefits by $25 per week. Section 2002, 123 Stat. 437-
439;
* Exempt the first $2,400 of unemployment benefits received by
individuals from income taxes in 2009. Section 1007, 123 Stat. 317;
* Provide $500 million total to states for additional administrative
and related costs. Section 2003, 123 Stat. 443.
Status of distribution of this funding:
Labor reports that, as of the week ending July 17, 2009, total payments
for extended EUC equaled $5.1 billion; for the increased $25 weekly
benefit totaled $4.0 billion; and (as of July 24), $2.2 billion in
modernization payments have been distributed to 28 states and the
District of Columbia.
Source: Department of Labor, Employment & Training Administration; and
Pub. L. No. 111-5, 123 Stat. 115.
[End of table]
Table 3: Unemployment Insurance Modernization Incentive Payments, as of
July 17, 2009:
State: Alaska;
Amount: $5,206,411;
State: Arkansas;
Amount: $59,969,332;
State: Connecticut;
Amount: $87,811,338;
State: District of Columbia;
Amount: $9,210,994;
State: Delaware;
Amount: $21,868,398;
State: Georgia;
Amount: $220,286,144;
State: Hawaii;
Amount: $10,175,575;
State: Idaho;
Amount: $32,260,831;
State: Illinois;
Amount: $100,383,562;
State: Iowa;
Amount: $70,814,387;
State: Kansas;
Amount: $68,970,143;
State: Massachusetts;
Amount: $54,227,780;
State: Michigan;
Amount: $69,427,524;
State: Minnesota;
Amount: $130,063,620;
State: Montana;
Amount: $6,508,588;
State: Nevada;
Amount: $76,937,412.
State: New Hampshire;
Amount: $10,467,073.
State: New Jersey;
Amount: $206,823,364.
State: New Mexico;
Amount: $13,007,527.
State: New York;
Amount: $412,742,107.
State: Ohio;
Amount: $88,169,529.
State: Oklahoma;
Amount: $75,886,483.
State: Oregon;
Amount: $85,574,641.
State: South Dakota;
Amount: $5,882,545.
State: Tennessee;
Amount: $141,808,031.
State: Vermont;
Amount: $4,639,299.
State: Virginia;
Amount: $62,817,683.
State: Washington;
Amount: $48,864,609.
State: Wisconsin;
Amount: $44,644,693.
State: Total;
Amount: $2,225,449,623.
Source: Department of Labor, Employment & Training Administration.
[End of table]
We obtained the information on these measures included in the Recovery
Act from the Department of Labor and from the text of the law itself.
We did not independently verify the accuracy or reliability of this
information. In all other respects relevant to providing this
information, we conducted our work in accordance with all sections of
GAO's Quality Assurance Framework that are relevant to our objectives.
We conducted our work in July 2009.
As agreed with your office, unless you publicly announce its contents
earlier, we plan no further distribution until 5 days after the date of
this letter. At that time, we will send copies of this report to
interested congressional committees and the Secretary of Labor. Copies
will also be available to others upon request and at no cost on GAO's
Web site at [hyperlink, http://www.gao.gov].
Should you or your staff have any questions about this report, please
contact me at (202) 512-7202 or fagnonic@gao.gov. Contact points for
our Offices of Congressional Relations and Public Affairs may be found
on the last page of this report. Key contributors to this report
include Charles Jeszeck, Michael Collins, and Mark Glickman.
Sincerely yours,
Signed by:
Cynthia Fagnoni:
Managing Director, Education, Income, and Workforce Security Issues:
[End of section]
Footnote:
[1] Pub. L. No. 111-5, 123 Stat. 115.
[End of section]
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