NYS Pays Out $7.4 Billion in Unemployment

ALBANY – The New York State Department of Labor today announced that in just over a month, more than 330,000 New Yorkers have been approved for the Pandemic Unemployment Assistance (PUA) Program, which provides unemployment benefits to individuals who do not qualify for traditional unemployment insurance. In total, the Department of Labor has now paid $7.4 billion in unemployment benefits to New Yorkers since the COVID-19 pandemic began in March — three-and-a-half times the total paid in benefits last year.

In addition, the Department of Labor announced emergency measures to ensure unemployed New Yorkers who have been assessed forfeiture day penalties will receive benefits during the COVID-19 pandemic. These actions, which suspend forfeiture days for the duration of the pandemic emergency, will allow more unemployed New Yorkers to receive financial support during this unprecedented crisis.

“Every state is facing a historic surge in unemployment claims and New York is no different, but we have moved faster and more aggressively than others to get beneficiaries their money, and in just over two months have paid out over three-and-a-half years’ worth of benefits,” NYS Labor Commissioner Roberta Reardon said. “We know New Yorkers are struggling, and we know they need support now, and we are working day and night to get money into more New Yorkers’ hands faster — including through these emergency measures — and we will continue to provide the support people need to help them weather this unprecedented crisis.”

Created by the Federal CARES Act, which was signed into law on March 27th, the Pandemic Unemployment Assistance Program provides unemployment benefits to Americans who are not eligible for traditional unemployment insurance, including those who are self-employed, independent contractors, gig workers, farmers, and those who have other COVID-19 barriers to work. The program’s implementation has faced multiple setbacks from the Federal government, including cumbersome guidance that required applicants to first apply for traditional unemployment insurance knowing they would be denied, receive a formal denial, and only then apply for PUA. In late April, that guidance was streamlined, and New York immediately launched an updated unemployment benefits application that allowed New Yorkers to seamlessly apply for either traditional unemployment insurance or PUA, depending on their eligibility.

New York State is now able to process PUA applications rapidly and has approved over 330,000 New Yorkers for this program. As part of the Department of Labor’s proactive communication efforts, these New Yorkers are receiving emails and text messages to inform them that their applications have been approved and remind them to certify weekly to continue receiving benefits.

In total, the Department of Labor has now paid over $7.4 billion in unemployment benefits to New Yorkers, including traditional unemployment insurance, PUA, and additional $600 weekly payments under the Federal Pandemic Unemployment Compensation program. This is three-and-a-half times more than the $2.1 billion that was paid for unemployment benefits in all of 2019.