Week in review: Jobless fraud reaches at least $20 billion

California has fixed distant astatine slightest $20 cardinal to criminals successful the signifier of fraudulent unemployment benefits, authorities officials said Monday, confirming a fig smaller than primitively feared but 1 that inactive accounts for much than 11% of each benefits paid since the commencement of the pandemic.

State officials blamed astir each of that fraud connected a hastily approved enlargement of unemployment benefits by Congress that fto radical who were self-employed get play checks from the authorities with fewer safeguards to halt radical from getting benefits who were not eligible to person them.

“I don’t deliberation radical person captured successful their caput the enormity of the magnitude of wealth has been issued errantly to undeserving people,” said Assemblyman Tom Lackey, a Republican from Palmdale, who brought on an illustration of 29 dump trucks filled to the brim with $100 bills representing conscionable implicit fractional of that wealth mislaid to fraud.

The pandemic ushered successful wide fraud astatine unemployment agencies crossed the country, with astatine slightest $87 cardinal successful fraudulent payments approved by states, according to a June study from the inspector general’s bureau astatine the U.S. Department of Labor. In Arizona alone, authorities officials said scammers pocketed astir 30% of each its unemployment payment payments.

In California, the fraud was truthful wide that authorities officials OK’d astatine slightest $810 cardinal successful benefits successful the names of radical who were successful prison, including dozens of infamous killers connected decease row. State officials adjacent sent $21,000 successful benefits to an code successful Roseville nether the sanction and Social Security fig of U.S. Sen. Dianne Feinstein, immoderate of the $2 cardinal successful full fraudulent payments that were sent to that aforesaid address.

Newsom’s medication has hired erstwhile U.S. Attorney McGregor Scott to assistance prosecute scammers, with the section saying Monday investigations are ongoing.

Workers statewide filed 65,042 claims for unemployment benefits for the week ending Oct. 23, a alteration of 7,843 from the 72,885 claims filed the erstwhile week, the U.S. Labor Department reported Thursday. (iStockphoto)

Jobless claims diminution successful CA, US

California workers filed less archetypal unemployment claims past week, but filings stay acold supra emblematic claims earlier pandemic-related shutdowns began much than 18 months ago.

Workers statewide filed 65,042 claims for unemployment benefits for the week ending Oct. 23, a alteration of 7,843 from the 72,885 claims filed the erstwhile week, the U.S. Labor Department reported Thursday.

The fig of jobless claims posted past week with California’s Employment Development Department was 45% higher than filings successful February 2020.

Nationwide, jobless claims dropped by 10,000 to 281,000, the lowest since mid-March 2020. Since topping 900,000 successful aboriginal January, play applications person steadily dropped, moving ever person to pre-pandemic levels conscionable supra 200,000.

The four-week mean of claims, which smooths retired week-to-week gyrations, fell by astir 21,000 to 299,250, besides a pandemic low.

In all, 2.2 cardinal radical were collecting unemployment checks the week of Oct. 16, down from 7.7 cardinal a twelvemonth earlier.

Two trucks are parked adjacent to stacks of containers astatine the Port of Long Beach successful Long Beach successful Calif., Friday, Oct. 1, 2021. Hampered by rising COVID-19 cases and persistent proviso shortages, the U.S. system slowed to a 2% yearly complaint successful the July-September period, the weakest quarterly maturation since the pandemic recession erupted aboriginal past year. (AP Photo/Jae C. Hong)

Recovery slows successful precocious summer

Hampered by rising COVID-19 cases and persistent proviso shortages, the U.S. system slowed sharply to a 2% yearly maturation complaint successful the July-September period, the weakest quarterly enlargement since the betterment from the pandemic recession began past year.

Thursday’s study from the Commerce Department estimated that the nation’s gross home merchandise — its full output of goods and services — declined from robust maturation rates of 6.7% successful the 2nd 4th and 6.3% successful the archetypal quarter, gains that had been fueled by immense infusions of national rescue aid.

The 2% yearly maturation past 4th fell beneath expectations and would person been adjacent weaker if not for an summation successful restocking by businesses, which added immoderate supplies they could obtain. Such inventory rebuilding added 2.1 percent points to the quarter’s humble expansion.

By contrast, user spending, which fuels astir 70% of wide economical activity, slowed to an yearly maturation complaint of conscionable 1.6% aft having surged astatine a 12% complaint successful the erstwhile quarter.

Staff writer George Avalos and The Associated Press contributed to this report.