The state labor agency’s pace of making first-time unemployment payments to jobless California workers amid coronavirus-linked business shutdowns has eroded badly in recent months, official federal government statistics show.
Unsettling revelations about ongoing failures at the Employment Development Department arrive at the same time that the state agency faces widening and harsh criticism from lawmakers about the EDD’s plan to undertake a two-week halt in processing jobless claims in a quest to chip away at the mountain of backlogged claims.
“This is unacceptable,” state Sen. John Moorlach, a Republican who represents portions of Orange County. “This abuse of California’s unemployed must end.”
In May, slightly over 1 million initial unemployment claims were received by the EDD, which made about 872,400 first payments on claims, a payment rate of 87 percent of the initial claims, according to official statistics compiled by the U.S. Labor Department’s Employment & Training Administration.
But in June, the EDD received 1.15 million initial claims and made first-time payments that totaled 509,700, roughly a 44 percent payment rate.
In July, the EDD reported 1.16 million initial claims and made first payments to 368,000 recipients — a payment pace of only 32 percent.
On Saturday night, the state EDD announced that it would institute a two-week halt in processing claims because of a mammoth backlog in the range of 1.59 million claims, hoping the suspension of processing claims might help the state agency whittle away the backlog.
“EDD now admits they won’t be able to get benefits to all those people until at least January 2021, some of whom have been waiting since March,” said state Assemblymember Jim Pattersoni, a Republican who represents sections of Fresno County.
Since mid-March, when state and local government agencies began to order an array of business shutdowns to combat the coronavirus, about 8.58 million California workers have filed initial unemployment claims.
“The report revealed that at least 1.6 million Californians and counting have unfulfilled benefits claims,” said State Assemblymember David Chiu, a Democrat who represents parts of San Francisco. “The size of this backlog is shockingly large. We have been frustrated at EDD’s ever evolving lowball estimates of the backlog.”