California Crackdown On Benefits Fraud Sparks 72% Plunge In Pandemic Jobless Claims
The last few weeks have seen improvements in jobless claims data stall at extremely high levels, gravely disappointing those expecting a continued v-shaped recovery back to the old normal…
The leading 'culprit' for these elevated levels of unemployment benefits seekers has been California.
The last two weeks have seen Cali claims far above other states…
And at an aggregate level, the biggest driver of composite jobless claims levels across America has been the Pandemic Unemployment Assistance (PUA) - a federal relief program intended for self-employed workers and independent contractors…
So, what is going on?
The answer is simple:
It's fraud!
As Bloomberg reports, between mid-August and the first week of September, applications for PUA doubled in California to more than 524,000, far above claim levels when the federal program first launched in April, the state’s Employment Development Department said Thursday.
But, EDD admitted rather stunningly that after taking action to deter suspected scammers from filing false applications in hopes of getting payments, PUA applications dropped sharply to 145,790, a decline of more than 72%.
In addition, Bloomberg reports that California’s figures show a wide discrepancy with nationally-reported data on continuing PUA claims in California. While the federal Department of Labor reports that more than 6 million Californians are claiming PUA benefits each week…
https://www.zerohedge.com/personal-finance/california-crackdown-benefits-fraud-sparks-72-plunge-pandemic-jobless-claims