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States overpaid billions to jobless
WASHINGTON, (UPI) -- States governments overpaid $7.1 billion in unemployment benefits in 2009, the U.S. Labor Department says in a preliminary estimate.
Government analysts say $1.55 billion of the overpayment was the result of fraud by recipients, and $2.27 billion was due to clerical errors, ABC News reports.
Both unemployment benefits and mistaken payments rose sharply in 2009 as the recession kicked into full gear. The Labor Department said $4.2 billion was overpaid in 2008, while total unemployment payments soared from $41.6 billion to $76.8 billion.
George Wentworth of the National Unemployment Law Project said overburdened employees at state offices may have made mistakes, while recipients may also have made honest errors after being unable to get help with the application process.
"In 2009, it was a fairly regular event to see different states' call centers basically reaching maximum capacity where people would not be able to get through for hours or days at a time," Wentworth said.
WASHINGTON, (UPI) -- States governments overpaid $7.1 billion in unemployment benefits in 2009, the U.S. Labor Department says in a preliminary estimate.
Government analysts say $1.55 billion of the overpayment was the result of fraud by recipients, and $2.27 billion was due to clerical errors, ABC News reports.
Both unemployment benefits and mistaken payments rose sharply in 2009 as the recession kicked into full gear. The Labor Department said $4.2 billion was overpaid in 2008, while total unemployment payments soared from $41.6 billion to $76.8 billion.
George Wentworth of the National Unemployment Law Project said overburdened employees at state offices may have made mistakes, while recipients may also have made honest errors after being unable to get help with the application process.
"In 2009, it was a fairly regular event to see different states' call centers basically reaching maximum capacity where people would not be able to get through for hours or days at a time," Wentworth said.
