AUGUSTA, Maine — In September, more Mainers were out of work and looking for work than live in Waldo County.
An estimated 39,800 workers were unemployed last month — part of a trend Labor Commissioner Laura Fortman said is troubling.
“When we compare initial claims in September to initial claims in 2007, it is up 58 percent this year,” she said. “We have been seeing about 5,000 new claims a month for the last few months.”
Fortman said September usually has one of the lowest numbers of initial unemployment claims. She said since the summer, there has been an upward trend in claims, and that once receiving benefits, workers are staying on unemployment insurance longer.
“We are concerned our rate will also be going up in the months ahead,” she said. “We are seeing the impact of the national economic trends here in Maine.”
But the numbers used by the Labor Department do not tell the whole story of Maine’s unemployed, Ed Gorham, president of the Maine AFL-CIO said Tuesday. He said the “official” numbers count only those in the system who are looking for work and have met state eligibility requirements.
“No doubt in my mind that these numbers are low,” he said. “Not everyone that works is counted by the unemployment system and there are many workers that are discouraged and have run out of benefits and can’t find a job.”
For example, Gorham said, seasonal workers are not covered by unemployment insurance so they are not “on the radar screen” and counted as out of work and looking for work. He acknowledged the expansion of unemployment insurance to cover part-time workers had improved the situation for some workers, but argued the current system is not counting thousands of Mainers without a job.
Fortman said Maine computes its numbers the same as other states. To be counted, a person has to be out of work and looking for work.
“I do agree that if a person is out of work and stopped looking for work they are not part of the [unemployment rate] number,” she said.
Fortman said there is not a reliable estimate of how many “discouraged” workers are in the state, but agreed with Gorham that there certainly are workers who have become discouraged.
“We urge them to go to our career centers.” she said, “They can get help there in finding a job even if they have exhausted their benefits.”
Gorham said lawmakers should act next session to cover all workers in the state.
“Everybody should be covered,” he said. “That’s what unemployment insurance was set up to do and in many other jurisdictions, more workers are covered than there are here.”
But any expansion of eligibility is likely to provoke a major legislative battle. Peter Gore, a lobbyist for the Maine Chamber of Commerce, said last month that employers are very concerned about efforts to increase or expand unemployment benefits.
“Just because the trust fund is in good shape now does not mean we should be adding programs to it,” he said.
The state fund has 18 months of reserves. That’s about $460 million and is funded by a tax on employers. By the end of 2008, Maine employers will have paid an estimated $89.5 million into the fund. Unlike some states, Maine’s unemployment insurance fund is paid for entirely by employers.
For the week ending Oct. 18, 7,200 workers received regular unemployment insurance benefits averaging about $264 a week. An additional 2,112 workers received federal extended benefits averaging about $248 a week. At the same time, the Department of Labor estimated there were 39,800 Mainers out of work and seeking a job.
The official unemployment rate in September was 5.6 percent, up from 4.9 percent in September 2007. During that same period, Maine lost 2,400 jobs even as the number of Mainers in the work force grew, said Labor Department economist Dana Evans.
“In general, there is a slightly higher percentage number of the population in the labor force than a year ago,” he said. “Couple that with the fact that the population has been growing slowly.”
Maine had a net increase in jobs until the summer, losing a net 1,000 jobs from August to September alone.
The official unemployment rate ranges from 4 percent in Cumberland County to 8.5 percent in Piscataquis County. Evans said the numbers are considerably better than those earlier this decade at the height of the recession.
On 10/22/08 at 8:02 AM,
Mainefriend wrote:
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It's sad to say, but there is no incentive for people to work other than their internal integrety, honesty, beliefs, and morals. This state as got to end the abuse of social welfare. I know that this does not apply to every unemployed individual, however the majority would get paid a less if they went to work!!!
On 10/22/08 at 8:07 AM,
Govt2Big wrote:
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Don't worry, be happy, stay unemployed and our pro-socialism state leadership will take care of you! As we've seen, they will just keep creating new taxes like the midnight beverage tax. Vote YES on #1 to Reject the new tax!
On 10/22/08 at 8:36 AM,
anne_of_mdi wrote:
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I agree, Mainefriend. That $264 a week is awful hard for most people to resist., especially if they have low morals. I think they get to collect it for about 3 months, and then they have to work full-time for at least another 13 weeks to be able to collect again. Unbelievable. Unemployed individuals should shun unemployment as a moral choice. Children, families be damned. It's so unfair that this program should be entirely funded by employer-paid unemployment tax. I don't think employers shouldn't have to pay any taxes at all. They should be able to profit off of America's most valuable resource - its labor force, also know as "the fundamentals of the economy," for free. Employers should be free to fire people willy-nilly. I also think that employers should stop paying out benefits like health insurance and 401-k's. Workers only deserve to be paid for their work -- as little as possible I might add -- and nothing more. Workers are overhead. No one would expect employers to pay benefits to their landlords or the utility companies, especially if the lights went out.
On 10/22/08 at 8:41 AM,
Elizabethann wrote:
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For some people because of high gas prices in the past few months and the distances they had to travel to work they had to quit jobs to find something else closer to home. I have a feeling that's part of the equation.
I find it very interesting though that since Sarah Palin has been on the vice-presidential ticket and the words "drill baby drill" the gas prices have gone down. It is now an issue. If we drill off shore and in our own country, less gas will be coming from the middle east and other places. $700 billion of American money goes to other countries for energy that we need to keep this country moving. If we start drilling here, or even say we are drilling in the states they probably will try to bring gas prices down enough so that it will be a non-voting issue. Either way, it's time to start drilling and working on other sources of energy.
On 10/22/08 at 8:47 AM,
anne_of_mdi wrote:
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Elizabethann, FYI people who quit their jobs aren't eligible for unemployment. I sure hope they didn't quit their jobs without having another job lined up!
On 10/22/08 at 9:09 AM,
Knightscross wrote:
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Expect 10% or more unemployment in Maine in the near future. What slave jobs there are pay crap.Maine has been sinking fast into the abyss of a Depression. Low wage jobs, no benefits or no jobs at all. This realignment in employment has been happening in Maine for 20 years now. It did not happen yesterday. One can't even retrain since there are no jobs to retrain too except being a nurse. Everyone in Maine can't be a nurse. Maine is looking at a Depression while the U.S.A. is in a recession.
On 10/22/08 at 11:04 AM,
searoses wrote:
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My dad said a few years ago to all us kids when we were thinking about ours lives calling... go and educate yourselves, but remember you must also learn to run a shovel ....for the man the runs the shovel will always has a job ...because of someone that won't get their hands dirty
On 10/22/08 at 11:31 AM,
Govt2Big wrote:
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Can you imagine what "Maine could be" if only our state politicians did what they were hired to do? Can you imaginewhat "Maine could be" if both the Baldacci Administration and our legislators didn't waste so many tax dollars on a daily basis? Can you imagine what "Maine could be" if more residents would get a wakeup call, get up off the couch and take-some-action?
Nothing changes if nothing changes, but when will more residents realize this fact? With all due respect.... WAKEUP PEOPLE!
If things go the demo-socialism way on November 4th, things are going to get a whole-lot-worse in a short period of time.
On 10/22/08 at 12:07 PM,
nicole wrote:
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Anne of MDI...is your rant satirical....I can't tell, and maybe I am just misunderstanding, but "Workers only deserve to be paid for their work", and "as little as possible I might add." WOW...Obviously you must have mistaken this century we are in....last I knew we treat workers better in this country than in the third world....You are really off your rocker to print such disgustling notions...from an era were the "upper crust" stomped down all who tried to better themselves...
On 10/22/08 at 12:23 PM,
anne_of_mdi wrote:
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Hi nicole, I'm sorry, yes my rant was satirical. I envy people who believe we treat workers better in this country than in the third world. That has not been my experience. It has been my experience in the state of Maine that employers pay as little as possible and are in the habit of discarding people like old rags regardless of performance. In other states I've lived in employers were far more respectful of employees. I was responding to Mainefriend who considers unemployment benefits "social welfare." Non-union, "employees-at-will" as we are called in this country have only one right, and that is to be paid for services rendered. Along with that we have to paid at least the minimum wage. Then, if your employer has four or more employees (this is true for Maine, it probably varies in other states, I don't know) they have to pay state unemployment tax. Mainefriend seems to think that losing your job or not having a job has something to do with a lack of integrity. Back in the old days a willingness to help others in need was thought of as a "Judeo-Christian value." Nowadays it's considered socialism. My how times have changed.
On 10/22/08 at 1:18 PM,
Mainefriend wrote:
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Anne, try not to walk around with your eyes closed! There are a great number of individuals who surround you who are willfully unemployed. They drive by your place of employment multiple times per day with the gas and cigarettes you bought for them!
On 10/22/08 at 1:28 PM,
anne_of_mdi wrote:
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Mainefriend, my eyes are fine, thanks for asking! A person who is willfully unemployed can't collect unemployment.
On 10/22/08 at 1:33 PM,
Govt2Big wrote:
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anne_of_mdi, that's unfortunately not true. In Maine, that happens on a regular basis and won't change until the system gets a complete overhaul. Food stamps are another example of a good program that's being abused by a lot of lazy residents and aliens alike.
On 10/22/08 at 1:42 PM,
anne_of_mdi wrote:
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Govt2Big, that absolutely is true. Believe me I know how hard it is to qualify for unemployment.
On 10/22/08 at 2:53 PM,
firstborn wrote:
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George Bush and his friends in Congress, Republicans and Democrats, are the main reason for such high unemploment in Maine and the Nation. Senator Collins voted with Bush's failed thinking over 90% of the time, and was admittedly proud of it until recently. If Tom is elected our Senator, he will be in a Senate majority and have the ear of President Obama, and will serve us much better than Sue Collins.
On 10/22/08 at 4:07 PM,
MaineCitizen_too wrote:
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I'm unemployed, still discouragedly looking for work, and I'm sure I am not accounted for in the labor department. You can add me to the list. At least those people collecting unemployment were lucky enough to be laid off without any stipulations.
On 10/22/08 at 5:00 PM,
Elizabethann wrote:
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Wish you the best in your job search MaineCitizen...I'll keep you in prayers..
On 10/22/08 at 6:32 PM,
mpt1964 wrote:
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Govt2Big: What's the answer? How do you imagine how "Maine could be"? I am curious. Anyone can come up with a magic pill to cure our economic woes, but why are they not running. Come January, look at the state legislature web site for the list of bills in the upcoming session and see how many are going to promote Maine for its livability, work ethic, and vitality. See how many bills are going to cut business taxes, eliminate BETR and TIF (sp), increase community college education funding, and or build a high speed internet network throughout every community in the state. But as you ID says, Government is too big. The number of legsilatures and senators would work more effectively if they were 100 and one legislative body instead of the 185 and two. I have been to other states where their legislatures are on a time deadline. South Dakota, for instance, only meets 40 days after a national congressional election, 20 days for the next year. Can you imagine how much legislative expenses could be eliminated if Maine were to adopt such system.
On 10/28/08 at 4:17 PM,
toto77 wrote:
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There are only three states where employees pay any tax for unemployment benefits. They are Alaska, New Jersey and Pennsylvania. Only Alaska and New Jersey have employees pay the tax all the time.
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