Hey guys, it's Ginny Silver and say want to talk to those
of you who are receiving California EDD unemployment benefits
who are wondering why Fed Ed is being triggered off and is
stated to likely end by September 4th when we have not yet
reached the supposed 6% unemployment rate.
Now the Fed Ed program is an extended benefits program available
to traditional unemployment claimants during heightened periods
of unemployment.
Now on the EDD's website, they do not actually state details
regarding the triggers for Fed Ed being switched on or off.
They do not state on their website text the unemployment
rate, percentage and other qualifying factors.
I contacted the EDD's media Department and they sent me over
the documentation from the Department of Labor that Fed is
that these changes must occur.
My contact in the media Department sent over this documentation.
I want to share with you why Fed Ed is decreasing because
many of you are wondering why it is suddenly being changed.
This system is triggered on or off based on the unemployment
rate. Now there are two different ways to track unemployment
rate. There is the insured unemployment rate and the total
unemployment rate.
The insured unemployment rate, also known as iur, includes
a count of the percentage of insured unemployed laborers.
That means that if you are a W2 employee who is entitled
to collect unemployment benefits, then you are included in
the insured unemployment rate.
If you're a claimant who is not normally qualify to receive
benefits because you are self employed in your PUA claim,
then you fall into the total unemployment rate category which
groups together those claimants who are not typically insured
and the regular insured unemployment claimants.
The Department of Labor issues the guidance to the state
unemployment departments which tells them exactly how to
implement the program.
This guidance defines a choice between either a TUR total
unemployment rate or an insured unemployment rate, which
would not include any of the claimants that aren't typically
insured. For the additional seven weeks worth of federally
funded extended benefits, the State of California has chosen
to utilize the tur the total unemployment rate.
This is noted in the Department of Labor's document here
by the At symbol placed next to the State of california,
which signifies a Tur indicator.
Now, because California has chosen to utilize the Tur trigger
for those additional seven weeks of Fed ed, at least three
months of an 8% unemployment rate is required and it must
be 110% of the rate for the corresponding three month period
in either or both of the two previous years.
This is the reason why we have a decrease in Fed Ed from
20 weeks down to 13 weeks.
Now.
This gets complicated because while the State of California
chooses to utilize the Tur trigger for those additional seven
weeks of benefits, the State of California chooses to utilize
the you are the insured unemployment rate trigger for the
regular 13 weeks worth of Fed Ed.
This means that for the State of california, those regular
13 weeks of Fed Ed are provided and triggered to on if the
insured unemployment rate for the previous 13 weeks is at
least now.
The unemployment rate shown here of 7.7% in the State of
California is the total unemployment rate, which is inclusive
of all Pua claimants extended benefit claimants in addition
to the insured unemployment claimants.
But because the state of California is utilizing the total
unemployment rate only for those seven additional weeks of
Fed ed, and for the other 13 weeks, they are utilizing the
IUR the Insured unemployment rate instead of going by that
seven 7%, which includes Pua claims and extended benefit
claims. Fed Ed is triggered on based on the insured unemployment
rate, which in fact is much lower.
The insured unemployment rate, which is excluding extended
benefit programs in the month of June 2021, was at three
point 69%.
Okay, you guys, I hope that was helpful in explaining the
reason why.
Please click like subscribe.
Leave me a comment down below has opted to utilize the total
unemployment rate, which compliance combine.
This is the total unemployment rate, as opposed to close.
I can't speak, you guys.
My brain.