US weekly jobless claims data flawed says government watchdog

The GAO said that the US Labor Department’s weekly jobless claims numbers contain a number of inaccuracies, making it tough for policymakers to respond to the unemployment crisis caused by the pandemic.

The GAO said the problems in data collection and reporting were making it hard for policymakers to get a reliable picture of what unemployment was doing during the pandemic [File: Elise Amendola/AP]
The GAO said the problems in data collection and reporting were making it hard for policymakers to get a reliable picture of what unemployment was doing during the pandemic [File: Elise Amendola/AP]

A government watchdog has found that the Labor Department’s widely watched weekly unemployment benefits data are providing an inaccurate reading on the number of newly laid-off workers because of flaws in the government’s data collection.

The Government Accountability Office said in a report on Monday that the Labor Department’s weekly report of the number of people filing new applications for unemployment benefits and those receiving continuing claims contained a number of inaccuracies.

The GAO said the problems in data collection and reporting were making it hard for policymakers to get a reliable picture of what unemployment was doing during the pandemic.

GAO said the problem arose because the Labor Department was using the number of people filing for claims in each state as a proxy for the number of people claiming benefits nationwide. However, this has resulted in inaccurate counts because of large backlogs in processing historic levels of claims and other data collection problems.

“Without an accurate accounting of the number of individuals who are relying on these benefits in as close to real time as possible, policymakers may be challenged to respond to the crisis at hand,” the GAO said in its report.

GAO recommended that the Labor Department revise its weekly news releases to clarify that the numbers in the reports are not an accurate estimate of the number of individuals claiming benefits.

policymakers may be challenged to respond to the crisis at hand

Government Accountability Office

The GAO also recommended that the department pursue other means to get more accurate readings on benefit applications such as using additional data collected by the states.

The GAO report said that the Labor Department had agreed to make revisions to its weekly news releases and agreed to pursue options for obtaining more accurate data from the states. But the Labor Department baulked at a recommendation that it seek state data going back to January 2020, contending that collecting back data would put too much of a burden on already strained state unemployment offices.

In response to the pandemic, which triggered shutdowns and the loss of millions of jobs, Congress provided support through three programmes. It boosted relief through the regular jobless programme by $600 weekly to provide more support. It also extended this relief from the usual 26 weeks to 39 weeks and it also created a Pandemic Unemployment Assistance programme which provided benefits to gig-economy workers and the self-employed.

The programme providing an extra $600 in weekly benefits expired at the end of July, while the programme to help gig-workers and the self-employed and the extended benefits programme are both due to expire at the end of December.

Congressional negotiators have so far been unable to reach agreement on reviving these benefit programmes with Democrats and Republicans remaining far apart on the size of another relief bill.

The GAO report also revealed that the benefit payments under the programme to help gig workers and the self-employed found that the majority of states had been paying the unemployed in these programmes the minimum allowable benefit instead of the amount they would be eligible to receive based on their prior earnings.

The GAO findings were part of the congressional watchdog agency’s routine reviews of the operation of the programmes that Congress passed early this year to provide support for the country after the economy went into a deep recession.

Democratic Representative James Clyburn, the chairman of the House Select Subcommittee on the Coronavirus Crisis, said the new report highlighted continued failures of the Trump administration in dealing with the challenges of the pandemic.

“With the coronavirus killing more than one thousand Americans each day, I strongly agree with GAO that we need urgent actions to prevent the further loss of Americans’ lives and livelihoods,” Clyburn said in a statement.

Source: AP

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