Nov 17, 2020 3 min read

The increasing intensity of the pandemic could be accompanied by another surge throughout the state – in unemployment compensation claims.

As COVID-19 cases have continued to spike across Pennsylvania, so have concerns about another possible shutdown of companies and businesses in an effort to – again – mitigate spread of the virus. A repeat of what occurred this spring would likely lead to job losses and a new burst of UC claims.

That potential scenario was raised Monday during the state Labor & Industry’s weekly virtual news conference. L&I oversees the UC program, and while secretary Jerry Oleksiak and his staff are now experienced at dealing with pandemic-related quandaries, the shape of this possible predicament has not taken shape.

“We’re not able to predict what will happen,” he said. “We certainly were not prepared at the beginning (of the pandemic). But we’ve made a lot of changes. We’re ready, more ready than when we started.”

When the pandemic hit the Keystone State in mid-March, the unemployment rate was 4%, tying a record low. Then, within 11 weeks, more than 2.4 million Pennsylvanian’s filed for UC benefits. L&I’s trust fund, which supports the benefits program, was on course to be solvent before COVID-19 arrived here. L&I now plans to borrow hundreds of million of dollars in a 0% interest loan to prop up that fund.

Since March 15, the state has paid nearly $31 billion in UC benefits. About $6 billion of that has been for regular UC and more than $25 billion for federal CARES programs paid through the state.

The quantum leap in claims led to a quantum leap in claimants’ complaints that they could not reach, or be reached by, L&I staffers. The department has since tripled its numbers, from 775 employees to 2,286 – who have worked 409,000-plus overtime hours to listen or respond to queries.

“We’ve made a lot of changes,” said Oleksiak, who also has worked with state and federal officials on a multi-state fraud investigation related primarily to the Pandemic Unemployment Assistance program.

Labor & Industry installed the ID.me system more than a month ago as an additional security measure against fraud. New PUA applicants must verify their identities through the new system, and now also must supply a self-image – a measure just added.

Oleksiak made another call for the federal government to extend two CARES Act benefits programs beyond their December closing date: for PUA and Pandemic Emergency Unemployment Compensation.

The agency will have its 26th and final weekly virtual town hall at 1 p.m. Thursday. It is open to the public, by calling 833-380-0719 or live-streaming at https://access.live/PAlabor.