federal reserve bank

Just 35 Percent Of Americans Cash In On Jobless Benefits

Source: http://www.businessinsider.com/jobless-unemployment-st-louis-fed-claims-rarer-than-overpayments-2012-10

unemployment

Among consumers eligible for unemployment benefits, just over one-third actually bother to cash in on average, according to new data from the  Federal Reserve Bank of St. Louis

The data applies to the last 22 years (1989 to 2011), save for during the recession, when elligible claims rose to 50 percent.

The findings are key for a couple of reasons.

Back in July, CNN Money cited data that showed that the Dept. of Labor had overpaid jobless claims by no less than $14 billion in 2011. In 2009, it was estimated that 11 percent of all claims were overpaid, for a total of about $11 billion. 

But since so many elligible workers are actually leaving their cash on the table, the agency should be more than capable of making up for lost funds.

For example, the 50 percent of workers who didn’t apply for benefits in 2009 saved the government an estimated $108 billion.

That’s more than 10 times as much cash the Dept. of Labor said was wasted on overpaying benefits the same year

There’s no denying overpaying jobless benefits is a problem –– most of them wind up in the hands of prisoners, identity thieves, retirees, and current workers –– but the report at least helps put that shortcoming into perspective.

Fraud is responsible for just 3 percent of all benefits paid, the Fed found, while eligible consumers leave seven times that much cash on the table by not applying for benefits.

And overpayments are beginning to slowly improve. The Department of Labor reported a 0.35 percent drop in overpayme! nts betw een July 2010 and 2011, and a 0.4 percent drop in errors caused by people who didn’t register their employment status with their state’s labor department.

The BLS put together a map of each state’s improper payment history in 2011, when overpayments topped $14 billion:

bls

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Monday, October 29th, 2012 news No Comments

ClickZ articles by Augustine Fou, PhD

Dr. Augustine Fou is Group Chief Digital Officer of Omnicom’s Healthcare Consultancy Group. He has nearly 15 years of digital strategy consulting experience and is an expert in data mining, analytics, and consumer insights research, with specific knowledge in the consumer payments, packaged goods, food/beverage, retail/apparel, and healthcare sectors.

Dr. Fou has provided strategic counsel on the use and integration of online marketing to clients such as AT&T, IBM, Intel, ExxonMobil, MasterCard, Unilever, Pepsi, DrPepper, Frito Lay, Taco Bell. KFC. Atari, Conde Nast, Hachette Filipacchi, Victoria’s Secret, Liz Claiborne, and others. He has served as expert witness on online payments for the Federal Reserve Bank of New York, and advised government agencies such as the Norwegian Trade Counsel, the Gouvernement du Quebec, Invest in Sweden Agency, and the Canadian Consulate.

Dr. Fou is an Adjunct Professor at New York University in the Integrated Marketing Department of the School for Continuing and Professional Studies. He also writes a monthly column for ClickZ’s Experts Columns on Integrated Marketing and is a frequent speaker and panelist at online and advertising industry conferences.

He started his career with McKinsey & Company and recently served as SVP, Digital Lead at McCann/MRM Worldwide. Dr. Fou completed his PhD at MIT at the age of 23 in the Department of Materials Science and Chemical Engineering.

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Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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