In late January, New York State (NYS) unemployment hit 7%, as the recession takes its toll. With 25,000 New Yorkers filing new claims for every week, last week state lawmakers agreed to authorize paying out an additional $2 billion this year for unemployment insurance.
While New York State's unemployment rate pales in comparison to California, which has reached 9.3%, what should be noted is that these states both have huge populations, with California's the tops in the nation. Thus 9.3% in California or 7% in NYS is much more damaging than 20% might be in Alaska, in terms of sheer numbers.
Both states are struggling to meet their unemployment insurance requirements. The maximum weekly unemployment check of $405 in New York State is lower than in neighboring states like New Jersey ($584), Connecticut ($576) and Massachusetts ($628). California, along with NYS perhaps the most expensive places to live, only allots $450 a week.
Denis M. Hughes, president of the New York State A.F.L.-C.I.O, regarding the unemployment insurance fix NYS finds itself in, told the New York Times:
“What they should be doing is fixing the trust fund by raising the threshold for contributions and adjusting the benefits. For the working men and women of this state, they have to make this system more solvent.”
With the massive hemorrhaging of jobs, it's not hard to see why states like New York and California find themselves in such dire budget states. California is still trying to pass a revised budget, in fact.
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