Unemployed in West Michigan: the Current State of Affairs

If you have been following the news about unemployment, you are likely not optimistic about any further relief for the long-term unemployed, in Michigan or elsewhere.

Here's where it stands: most states give a maximum of 26 weeks of unemployment compensation to laid off or terminated workers, but since 2011, to save money, Michigan limited the number to 20, a significant reduction from the 99 weeks' workers were getting during the recession.  Still, in 2013, with federal help, Michiganders could get a maximum of 48 weeks' assistance.

In December, 2013 federal unemployment extensions expired, and, for Michigan workers, that capped the maximum benefit at 20 weeks'. Congress has been ineffectively duking this issue out since then with various proposals in the pipeline, and last week House Speaker John Boehner rejected the Senate bill temporarily extending unemployment benefits at the federal level for the long-term unemployed as "unworkable," particularly reinstating benefits retroactively since the old law expired.

The latest unemployment statistics reveal Michigan, at 7.8%, as having the 5th highest unemployment rate in the nation, after California, Illinois, Nevada, and Rhode Island. Preliminary statistics reveal that the Grand Rapids-Wyoming metropolitan area has an unemployment rate of 5.8% (January 2014). The real unemployment rate, however, which would include the long-term unemployed who have given up hope of finding a job but have dropped off the unemployment rolls, is 10.2%, state-wide. Add to that the underemployed who would seek more or better work if they could find it, and those numbers only grow higher, probably much higher and growing as the new health care insurance laws solidify the disincentive employers have to give their workers more hours.

Some Michigan lawmakers have proposed laws that would offer tax relief for unemployment compensation at the state level or re-extend the total number of weeks to 26, but these proposals do not seem likely to go anywhere in the Michigan Legislature.

Add to this the staggering amount of student loan or underwater mortgage debt Generations X and Y are shouldering, and it's no wonder that many people in this current economy see themselves as just "picking through the rubble." Good news for the average Michigan worker seems less likely all the time, although we can of course hope that the area's economic growth will have some positive effect in job creation longer term.

Unemployed in West Michigan, muddling through the system

As I described before, receiving your unemployment benefits in Michigan may be more complicated than it looks.  After weeks of not receiving an unemployment check, I decided I had better visit the state's unemployment problem resolution office. But I soon discovered that this office was packed by 8 o'clock. Apparently, the state's new eligibility questionnaire had doubled the wait time to resolve individual problems. Getting there as the doors opened only indicated that you might be able to meet with a case worker by late afternoon. But I didn't exactly have anywhere to go that day.

As I waited in line, the fellow next to me told me my best bet was to arrive early - like an hour and a half early - and wait outside until the doors open. I found myself standing outside the unemployment office at 6:30 in the morning. The wind chill was -5. But at least I would get answers, I thought.

The silver lining to all this is what you hear while waiting in line. Among the roughly 100 shivering souls waiting alongside me, many had very interesting stories as to why they're there and what their problems are. It made waiting outside in a soviet line, in the pre-dawn dark just a bit more bearable.

After finally (number #35!) gaining admission to the unemployment office, I sat, waited, and talked to the guys on either side of me. One was a highly skilled high-end plumber, and the other was a diesel trucker. What interesting stories they had to tell about their travels and their situations in life currently, and the challenges of small business. There is plenty of real suffering in this jobless recovery, and men have taken it on the chin.

Finally my number was called. As I approached the front of the line, I was motioned to talk to someone on the phone. Really? Well, all right, I figured, as long as I get some answers. Except I didn't. In so many words, I was only told that my case had been assigned to someone. It occurred to me that I had little power to affect change regarding my "pending status" anyway. Resigned, I left, my view of how a bureaucracy functions confirmed.

A few weeks later, in January, 11 weeks after my last unemployment check, when I logged on to the unemployment benefits portal, my benefit claims had changed status, and the next day, I got a check for that almost 3-month backlog of benefits.  At no time during this process was I able to communicate with anyone who had knowledge of my situation or could make any decision about them. There was no one to call, email, or otherwise query. I was relieved to finally receive my unemployment money, but the lag time occurred during Christmas, in the bleakest part of the year. If my family hadn't had savings to fall back upon, we could have been like any one of the many families who have been evicted or foreclosed on in the past five years. Weave your own safety net, Michiganders, in case the government one isn't there to catch you when you get tripped by this economy.

And wear a scarf - it's cold out there.

--John Potter

Unemployed in West Michigan: more complicated than it looks

When I was younger, I was always a bit curious how people seemed to simply wait in line to get an unemployment check. It appeared as if it was a somewhat unappetizing way to attain free money. In other words, I felt as if it was a world an enterprising person never had to come into contact with. Naive me.

Last September I was laid off from a job I had had for 15 years I knew the unemployment office was to be my eventual destination. And I inquired from friends what that actually entailed. But I gradually became acquainted with the full scope of process: keeping record of your job search, going to a Michigan Works office, getting acquainted with calling an interactive phone recording (asking about my job search). And fortunately for me, the regional problem resolution office was only a mile from my house.

Then the checks started coming. It wasn't a lot of money, but it wasn't insignificant either. A welcome relief actually when so many bills need payment. I seemed to have the system down - keep records, fax those records monthly to Lansing, collect money. Then I made a mistake. I told the truth.

The truth was that, feeling the pressure to supplement my income, I applied for a low-paying very part-time janitorial job. I then decided that would almost be counterproductive to finding a job in my field, so I turned it down after being offered it. The aforementioned phone recording that asks questions about your job search does indeed ask if you've turned down any jobs. Well, I detailed through subsequent paperwork the why, who, and where of this refused job.

Michigan's unemployment system does not necessarily cut off benefits if you refuse a job. It depends whether it's in line with your previous salary and experience. The employer is contacted, and a review of the facts occurs. This is something that should take a few weeks, correct? I'm still waiting after nearly 3 months.

To complicate matters, Michigan's unemployment office instituted a new interactive phone system to determine eligibility. Such a system is not new in itself, but the roughly 30 questions needing to be answered takes a full 25 minutes. Eventually I realized that using the state's website to answer their questions was a quicker route.

Somewhere, I'm sure, a state bureaucrat confidently assumed that instituting a new and highly specific questionnaire would weed out fraud and abuse. Perhaps even generate savings. And of course, the internet would expedite this process for everyone. But they didn't think it through. At least they didn't consider the resulting casework overload. My guess is that this bright idea was floated in the past. But someone with more experience thought this through and realized it might not be so successful in execution. She must have retired. I suppose that's the problem with bureaucrats - they're rather immune to feedback.  Just ask any of the hundreds of people who swamped the Unemployment Agency last Monday, stood out in the freezing cold for hours, and didn't get to speak to anyone. Government doesn't tend to have to worry about marketing and continuous improvement the way small businesses do.

So what happened when I decided to take action and meet with an unemployment officer? Stay tuned; I'll answer that next time.  Perhaps I'll have heard something back by then, but I'm not holding my breath.

--John Potter

Unemployed in West Michigan: How to navigate the Unemployment Office

This month I became unemployed for the first time in fifteen years.  The last time I faced the job market, the internet was just becoming popular and finding a job was simply doing legwork or "pounding the pavement."  After all, the economy was roaring and it was more a matter of finding the right job rather than a job.  Today I'm becoming acquainted with a far different, very challenging job market.  And being able to skillfully navigate internet job boards beats any amount of legwork you're willing to put in.

Nonetheless, my first responsibility was to file for an unemployment claim.  Not unlike the Secretary of State's Office, Michigan's Unemployment Insurance Agency has people take a number and wait to speak with an agency representative.  As I sat waiting, I wondered just how long the wait would be.  A twenty-something woman let me know that it would be a few hours.  That is, unless I was willing to stand in line at eight in the morning.

Just as I was about to leave, a UIA worker came out and announced that first-timers could apply online rather than wait. She also apologized to everyone there, announcing that the state had cut four hundred  positions at the state's UIA within the past year.  Apparently it is in the midst of further automating the unemployment process.

Which is a grand idea!  Except that most of the people waiting to talk to a UIA worker had special circumstances (i.e., conflict with disability payments).  The UIA workers I did observe worked diligently to make sure the process worked for those in need, but just being unfamiliar with a new and bureaucratic system can make you feel like you need help too.

Getting unemployment is not typically a monumental ordeal, but you must follow the process carefully (including answering phone questions on a specific day and time).  And the UIA has a reputation for frequently changing its claims process.  Next week, applicants will have to answer a variety of different phone questions through MARVIN (Michigan's Automated Response Voice Interactive Network).  Government agencies have a real affinity for acronyms, don't they?

After making the initial claim, the UIA requires applicants to apply to at least two open job positions each week while they're receiving unemployment checks - which means trudging off to the nearest Michigan Works building.

The Michigan Works staff are tasked with helping the unemployed register for employment on the Pure Michigan Talent Bank. The staff were quite helpful to me in this regard. And the site itself is rather easy to use. However, the connectivity glitches made a 20-minute task turn into an hour. And woe to the unemployed person who has no computer experience whatsoever.

In all, applying for unemployment went fairly smoothly was not the bottleneck or broken pipeline I'd feared it might be.  As with any government entity, correct procedures must be followed to avoid a mess.  Happily, I found the people working at these institutions to be very helpful.

What is your experience with unemployment in West Michigan?

--John Potter