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In 2013, Californian jobless workers had to navigate a slow, outdated unemployment insurance system in order to receive benefits. According to The Associated Press, claimants had to call the Employment Development Department 31 times on average before they spoke to a person.

Thankfully, that number has improved drastically, but the EDD is still experiencing delays and problems in early 2015.

Officials want more as system improves
Down from the 31 calls in 2013, claimants now only have to try an average of five times before they get connected to an actual person. This is certainly progress, but state officials want to see even more gains before they can call the UI system fully functional.

“Fewer claims relieve pressure on system.”

The AP reported that EDD officials believe that the current system is still struggling. This comes even after California Gov. Jerry Brown called for improved EDD customer service and local lawmakers approved $47 million in state money and $21 million in federal funds for system upgrades. Since then, the EDD has hired roughly 500 new employees to handle unemployment insurance claims.

“There was a lot of calamity,” said EDD director Patrick Henning Jr., according to The AP. “We need to make sure that we have an unemployment system that is prepared for the next downturn.”

EDD handles significant number of claims
The California unemployment insurance system is one of the largest in the country and faces more claims on a regular basis than nearly all other states.

A news release from the EDD reported that California had a jobless rate of 6.9 percent in January, higher than the national rate of 5.7 percent. There were also more than 1.3 million unemployed workers in the state during that month, down by 31,000 compared to December and 194,000 from January 2014.

The AP noted that the California EDD processed 3.1 million unemployment claims in 2014 alone. By the end of 2013, however, the department saw between 83 and 90 percent of its calls go unanswered by an employee.

On the plus side, California is in the midst of labor growth. The EDD pointed to employment gains of 54,000 from December to January. Naturally, the more people working, the fewer unemployment claims – and the easiest way to relieve stress on a system is to get people back to work. And, it seems that California is moving in the right direction.

Juggling tax rates and difficult employees can become challenging at your company. Here at Corporate Cost Control, we understand these problems and are well-positioned to help. Our extensive background in cost control and human resources will allow you to better manage your unemployment insurance expenses.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

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