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russellsmith, russellsmith[at]sina.com в 26.3.2013 16:01:35
ST. THOMAS В- At the same time that weekly unemployment checks will be cut by 10.7 percent because of sequestration, Virgin Islanders on extended unemployment benefits will lose the opportunity to apply for continued assistance past 46 weeks of benefits. The V.I. Labor Department said new claims in the territory had dropped within the last 13 weeks below levels needed for the territory to qualify for tiers 2 and 3 of extended unemployment benefits. Tier 2 offers 14 weeks of benefits after Tier 1 benefits have been exhausted, and Tier 3 offers an additional nine weeks beyond that. In late February, the territory lost eligibility for Tier 4 benefits, the last available six week period of extended unemployment benefits, because the federal government calculated the local unemployment rate to be below 9 percent. The unemployment rate locally has remained at 13.4 percent since January, according to Labor Department statistics. However, a wide disparity exists between islands, mostly because of the closure of the HOVENSA refinery in February 2012 and the drawing of benefits by 700 workers who now are approaching the end of their regular unemployment benefits. The unemployment rate for St. Croix in January was 17.4 percent, while on St. Thomas, it was 9.7 percent, according to statistics published by the Labor Department. The trigger for the federal government to withdraw the eligibility for Tiers 2 and 3 extended unemployment benefits was a drop below 6 percent calculated by the federal government, according to Labor Commissioner Albert Bryan Jr. After March 31, weekly extended unemployment benefits will be cut by 10.7 percent, a total of about $250,000 lost to the territory this year, according to Bryan.After March 31, Virgin Islanders will not be able to apply for tiers 2 and 3 extended benefits. Those already on tiers 2 and 3 will not be cut off, but Tier 1, the 20 weeks after regular unemployment runs out, will become the last available extension for future applicants unless the unemployment rate again rises above eligibility thresholds set by the federal government. A large disparity exists between how the V. I. Department of Labor and the federal government calculate the unemployment rate, according to Bryan.The 6 percent trigger ending tiers 2 and 3 is a grossly mistaken figure, and the federal government's formula is inappropriate for the Virgin Islands, Bryan said. The V.I. Labor Department and the federal government both start with new claims when making a determination as to the overall unemployment rate.However, the federal government uses a multiplying factor that is too low and is based on national averages, according to Bryan. That multiplier is more appropriate for states with larger job markets and populations, he said. Also, there is no way to counter fluctuations in employment that result from the temporary nature of many tourist season jobs. The V.I. Labor Department uses new-hire postings and other factors specific to the territory when formulating the unemployment rate, Bryan said. "I wouldn't say it's unfair, but I don't think it's an accurate way of depicting our unemployment rate," Bryan said. "We have been through lengthy discussions with the Department of Labor over this. We would like them to use a multiplying factor that is more based on Puerto Rico or states similar to us rather than using the national average."The Virgin Islands typically dips below thresholds for extended unemployment benefits about this time of year because many of those temporary tourist season jobs have been filled. By June or July, job vacancies should drive up new claims numbers, allowing the Virgin Islands to extend unemployment benefits beyond Tier 1. Eligibility is evaluated by the U.S. Labor Department every month using numbers based on the previous three months, Bryan said. "What happens in May is the season ends, so the numbers go back up, then your three-month rolling average goes back up and you click back on Tiers 2 and 3," Bryan said. "Past 26 weeks, unemployment benefits are always unpredictable. This is why we encourage people as soon as possible to take advantage of the job placement services and re-employment programs we offer."- Contact Amanda Norris at 714-9104 or email anorris@dailynews.vi.
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