An extension of federal unemployment benefits negotiated as part of the $858 billion federal tax cut deal that just passed Congress this month will directly benefit over 1,700 Virgin Islanders, according to the V.I. Department of Labor.
In the deal, Democrats bargained for a 13-month extension of unemployment insurance benefits and agreements to allow votes on some of their bills in exchange for the Republican priority of extending Bush-era tax breaks to the nation’s wealthiest families.
At 8.2 percent, unemployment in the territory is below the national average of 9.6 percent, but far from full employment. The extended benefits will make it easier for those unemployed workers to find permanent jobs, according to Labor Commissioner Albert Bryan.
“The additional benefit of this act is that it provides an additional period of transition for not only job placement, but for training and retraining opportunities so that at the end of the benefit period employment may be possible,” Bryan said in a Government House release.
Since 2008, the Labor Department’s Division of Unemployment Insurance (UI) system has distributed more than $91 million dollars, Gov. John deJongh Jr. said in the same release.
“At a time when the territory’s unemployment rate is at 8 percent, these benefits continue to help dislocated workers to sustain themselves and their families … and continue to keep money circulating in our economy,” said deJongh.
There are four tiers of unemployment benefits, depending on length of unemployment.
Bryan said the federal legislation will allow anyone that is being paid out of any tier to move on to the next tier. It does not affect those who have exhausted the entire 73 weeks of benefits. He said the rate of initial claims has been steadily increasing since April of last year.
“This, coupled with the fact that 66 percent of UI beneficiaries use all of their regular unemployment, makes the passage of this bill crucial to the territory,” Bryan said.
“The increase in job losses and the fewer jobs available in the market cause people to stay on the plan longer than usual, twice as long as they did in 2007.”
While 73 weeks seems like a long time, people are finding themselves on the 74th week and further without a solid job prospect, Bryan said.
The Department of Labor offers training programs with stipends for workers who may need to retrain to secure future employment, he said, encouraging those looking for work to stop by any Labor Department office and ask about its programs.
Those with questions about the unemployment insurance program or who want to find out whether they are eligible for this extension can visit the Unemployment Insurance office or call the office on St. Croix at (340) 773-1440 or on St. Thomas at (340) 776-3700.
