Labor secretary, governor see hopeful signs in employment data

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Delaware Secretary of Labor Cerron Cade sees hopeful signs in Delaware’s unemployment picture. Cade spoke at Gov. John Carney’s  press briefing on Friday.

Cade reported that the state paid out $45 million in jobless benefits in the most recent week, down slightly from the previous period. 

Gov. John Carney took note of encouraging figures that were released on Friday from the U.S. Bureau of Labor Statistics. The bureau reported a 2.5 million job gain for the month and a 13.3 percent May unemployment rate, down more than a percentage point a month earlier.

Prior to the downturn, the jobless rate in the U.S. and Delaware was around 4 percent. Delaware’s April jobless rate was 14.3 percent, slightly below the national figure. 

Cade noted that unemployment benefit payments in the state are still running at six times the level reported before the coronavirus crisis.

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Since the CoVID-19  crisis, the state has paid out $117 million from its employment insurance fund, with the federal share at about double that figure.

Cade also provided an update on the Pandemic Unemployment Assistance program for the self-employed.

The new program has come under fire for delays in processing applications.

To date, the state has processed 1,300 of 6,400  claims submitted, with payments of about 5,000 per claim as it works  through remaining claims.

Only about half of the claims have sufficient documentation, according to Cade. Documentation includes tax returns, W9 contractor payments and other evidence of income. The Labor Department has been working with the state Department of Revenue on tax information.

Fraudulent claims have emerged as a problem with the pandemic program,  with the federal government developing rules and undertaking other actions to deal with the issue, according to Cade.

Cade advised applicants to not use their entire Social Security number in dealing with claims issues and as a way to reduce the chances of fraud. The department only needs the last four Social Security numbers. 

The Labor Secretary also acknowledged a technology glitch last week that led to 3,000 applicants being informed that their claim had been processed and ready for payment.  The number was actually 300. The state later informed those affected about the glitch.

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