By Grace Gedye, CalMatters
A cascade of tech layoffs, the strain of inflation and news of potentially recession-inducing decisions from federal bankers could spell tough economic times ahead.
If more people are laid off, more Californians will turn to unemployment benefits to help them afford the basics while they look for a new job.
It’s a process that buckled under the pressures of the pandemic. Residents sometimes waited months for benefits from the state’s Employment Development Department, dialing the department hundreds of times. On top of that was a string of fraud scandals: Claims came from ‘unemployed’ infants and children and according to prosecutors, benefits were paid to tens of thousands of inmates in jail and prison, who are ineligible. The vast majority of the fraud was in temporary, federally funded pandemic aid programs.
The situation has since improved. But how will the system hold up if there’s a recession?
Thanks to “the level of testing that the pandemic put us through, we are in such a strong position to weather a typical economic contraction,” said Gareth Lacy, communications advisor at the department.
But not everyone is convinced. “There have been some major improvements,” said Daniela Urban, executive director of the Center for Workers’ Rights. “But I think we’re not at the point where if a major crisis hit the unemployment system again, the system would be able to function as it should.”
A recession would probably look different than the...
Prosecutors in central New York say they are reopening the investigation of alleged "gang rape" at a Cornell University fraternity in 2024 after a civil lawsuit filed earlier this month sparked ou...