Clearly, a lot of people are in need of unemployment benefits. But lots of people are gaming the system – and the overpayment tab is in the billions.
Abuse of the unemployment insurance system has hit a new high.
USA Today has reported for every $1 in unemployment benefits paid out in the previous 12 months through March, more than 11 cents (11.6%) in overpayments were made.
That’s more than the amount of overpayments made in the 12 months ending June 2010. During that time 10.6% ($16.5 billion) of the jobless benefits distributed shouldn’t have been made — the previous record.
The main reasons USA Today discovered for the overpayments:
- Many workers keep receiving benefits after they land a new job
- Some employers fail to provide govt. officials with enough info on why a person left his/her job to adequately determine eligibility for benefits, and
- In several cases, benefits continue to be paid to people who fail to comply with their state job search requirements.
Info: To see what state and federal officials plan to do to reduce overpayments, check out USA Today’s breakdown by clicking here.