Agenda of Economic Security Reforms Supporting Low-Wage Working - - PowerPoint PPT Presentation

Agenda of Economic Security Reforms Supporting Low-Wage Working Families

Working Poor Families Project Cross State Meeting Strengthening State Policies December 6, 2005

Maurice Emsellem National Employment Law Project (510) 663-5700 emsellem@nelp.org

National Employment Law Project www.nelp.org 2

Percent of Jobless Collecting State Unemployment Benefits (2001-2003)

National Employment Law Project www.nelp.org 3

Major Shift Toward State Policies Filling the Gaps in the UI Program

Since 1999, the movement to fill the gaps in the UI

program to benefit low-wage and women workers has reached half the states.

State Reform Highlights:

• 12 new states count a worker’s recent earnings to

qualify for benefits (“alternative base period”).

• More than half the states allow workers to collect

unemployment while seeking part-time (not just full- time) work.

• 23 new states have adopted coverage for workers who

leave their jobs due to domestic violence and other “family friendly” reforms.

National Employment Law Project www.nelp.org 4

Alternative Base Period Expands to 20 States, Covering Nearly Half the Nation’s UI Claims

National Employment Law Project www.nelp.org 5

Estimated Numbers Collecting UI Due to the Alternative Base Period (2003)

211,000 439,000

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000

Current ABP States (20) Projected to All States

National Employment Law Project www.nelp.org 6

ABP Critical to Low-Wage Workers (Michigan Case Study)

Percent Collecting UI Due to Michigan's ABP (2003) 17.4% 1.6% Low-Wage Workers Higher-Wage Workers

• In 2003, there were

26,219 ABP recipients.

• ABP payments

average $232 a week ($4,600 a year), compared with $90 in TANF averaged per week.

• ABP benefits totaled

$86 million in 2003 (equal to 25% of TANF payments).

National Employment Law Project www.nelp.org 7

Major Increase in Coverage Outweighs Increased UI Costs Due to the ABP

5.5% 6.5% 6.2% 2.7% 3.1% 2.1% 5.2% 4.7% 4.7% 1.7% 1.4% 1.1% 0% 1% 2% 3% 4% 5% 6% 7%

Michigan Maine New Jersey Georgia Virginia North Carolina

Percent of UI Claims Percent of UI Costs

National Employment Law Project www.nelp.org 8

Families Seeking Part-Time Work Qualify for UI in Half the States

National Employment Law Project www.nelp.org 9

Part-Time UI Reform Critical to Women Workers (Maine Case Study)

70.5% 29.5% Women Men Maine's Part-Time Worker UI Reform (2004) Maine’s work-search rule

permits history of part- time work or “good cause” related to child care or dependent care.

886 workers collected UI

under Maine’s part-time UI law (2.7% of all UI claims).

Collected $1.8 million in

benefits, averaging $2,078 per worker.

Another 920 part-time

workers were paid UI after looking for full-time work.

National Employment Law Project www.nelp.org 10

Domestic Violence Survivors Qualify for UI Coverage in the Half the States

National Employment Law Project www.nelp.org 11

Expanding Income Support Necessary to Access Training

Federal law requires states to exempt UI

recipients from work-search while participating in state-approved training.

UI in approved training often limited due to

restrictive state rules denying training and lack of coordination with WIA system.

Model states (e.g., Maine and Iowa) approve:

degree-granting programs; all WIA training; construction trades certification and apprentice programs; and after decision to leave “unsuitable employment.”

National Employment Law Project www.nelp.org 12

Iowa Approves 11% of UI Recipients (9,210) for Training Lasting 1-12 Months

1165 930 1171 771 877 724 434 740 516 736 477 669

200 400 600 800 1000 1200 1400 1 2 3 4 5 6 7 8 9 10 11 12

Months of Training Approved (2000)

National Employment Law Project www.nelp.org 13

Trade Adjustment Assistance: State Advocacy Opportunities

Workers certified as

unemployed due to trade imports or shift of production outside U.S.

Covers workers

producing “articles,” not services.

Covers “secondary”

workers (new!) employed by firms that also supply, finish or assemble as part of the manufacturing process (now less than 2% of TAA certified workers).

Training (26 weeks

remedial, 104 weeks vocational)

Extended UI (26 weeks

while in remedial training and 78 weeks for vocational training)

Health Care Tax Credit

(new!) (covers 65% of premiums).

Wage insurance (new!) for

• lder workers (up to

$10,000 over two years).

National Employment Law Project www.nelp.org 14

Trade Adjustment Assistance in Selected Midwest States (FY2003 & FY 2004)

18,040 17,567 16,632 11,155 4,470 5,618 5,568 8,453 4,158 4,294 9,957 3,622 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000

Illinois Michigan Ohio Wisconsin

TAA Certified Training Received UI Supplement Received

National Employment Law Project www.nelp.org 15

Profile of Workers Collecting Trade Adjustment Assistance

55% 51% 77% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Women Under Age 45 High School or Less