Updates from the Maryland House Economic Matters Committee – June 8, 2021
- Starting July 3, Maryland will end its $300 supplemental weekly unemployment payments
- Maryland is one of multiple states opting out of Federal Pandemic Unemployment Compensation (FPUC), Pandemic Unemployment Assistance (PUA), and Pandemic Emergency Unemployment Compensation (PEUC)
- Nationwide, benefits were are set to expire during the first week of September. Maryland will end the benefit two months early and forfeit $1.5 million in federal stimulus money
- $12.3 billion in benefits paid since March 2020
- Unemployment rate in MD is 6.2%
- 12 consecutive months of job growth in the State
- Dept. of Labor in touch with constituents about the end of federal packages
- During the week of July 4, Labor will reinstate standard requirement for all regular state unemployment insurance claimants to actively search for work
- Claimants required to complete 3 reemployment activities each week to maintain eligibility for unemployment insurance benefits
- Many fraudulent claims are being entered, not going away
- System is catching most of these claims
- Relying on “checks and balances” system when regular UI applicants have wages
- “Severe worker shortages”- business owners have been struggling to hire workers
- 27 new apprenticeship programs established during the pandemic
- Bipartisan budget agreement that includes $75 million in federal funding to apprenticeships, employment training programs
- Different ways have been established to get Marylanders back into the workforce
- Recruitments and job fairs
- Job centers
- Apprenticeships
- Work Sharing Unemployment Insurance Program
- Employers won’t be held responsible for any benefits that don’t apply to any of their employees
Questions
Q: Why the July 3 date? Has a carrot & stick approach been considered?
A: July 3 because of the number of people vaccinated, steady declining positivity rate, and businesses want to open back up to full capacity and begin running like normal; unemployment benefits are still available for those who qualify
Q: What is the number of total fraud claims flagged? What percentage is that of the total amount of claims?
A: 878,306 claims flagged, approx. 1.8 million total claims; Lexis Nexis is the vendor that will be looking at, flagging claims
In this instance, fraud is due to ID issues (stolen identities)
Q: Did Hogan consider economic research conducted when reaching July 3 termination date?
A: Governor Hogan did not make this decision in a vacuum; used national data regarding job openings
