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Miguel Diaz

Which of the following is not a form of unemployment that is counted by the government? California EDD breakdown

So I was helping my nephew study for a econ class and this question came up - which of the following is not a form of unemployment that is counted by the government - and it got me thinking about my own situation with California EDD. I was laid off from my warehouse job back in September and honestly had no idea how the system actually measures unemployment until I started digging into it. Like the government counts people who are actively looking for work, but what about people who just gave up? Or people working part time who want full time? None of that gets captured in the basic headline number. Anyway I filed my claim through myEDD (https://myedd.edd.ca.gov/) and I'm now three weeks in with two weeks still showing Pending in my Claim History. No notice, no explanation, nothing in my UI Online account telling me what's holding things up. Has anyone dealt with this kind of limbo and figured out what was actually going on behind the scenes?

Pending weeks usually mean EDD is still working through an eligibility question on your claim - could be something about why you left your last job, could be an identity thing, or just processing backlog. The DE 429Z notice should have come in the mail by now showing your weekly benefit amount. Did you get that yet? If you did, that means your claim is at least set up, they just haven't cleared those weeks.

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Got the DE 429Z, yeah, it shows $387 a week. So the claim exists I guess, it's just those two weeks sitting there doing nothing.

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Same thing happened on mine, the DE 429Z came pretty fast but the actual payments took forever after that. EDD still has to decide eligibility separately from setting up the claim.

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Exactly - the DE 429Z is basically EDD laying out the maximum your claim can pay, it doesn't mean they've decided you're eligible for those specific pending weeks yet.

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Adjudication on a warehouse layoff held up my payments for almost a month last spring. I ended up using Claimyr (claimyr.com) to get through to an EDD agent on the phone after the hold music kept cutting out on me. The agent pulled up my file and told me the pending weeks were flagged because my separation reason needed a second review - nothing I did wrong, just a standard check EDD runs when the employer's response doesn't match the claimant's dates exactly. They said to keep certifying while it sorted out. Claimyr's video on reaching a live person at EDD is at https://youtu.be/JmuwXR7HA10 if the phone line is running you in circles.

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Wait so the employer's response can actually cause MY weeks to go pending even when I was clearly laid off? That feels so unfair.

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That's exactly what the agent told me - the employer submitted dates that were off by a week from what I'd put on my application, and EDD flagged it automatically. Once the agent noted it in my file it cleared within a few days.

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Dates mismatch between what the claimant says and what the employer submits - yeah that's a really common reason for a hold. Good to know there's a way to actually find out instead of just guessing.

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The original question your nephew had - about which type of unemployment doesn't get counted - actually matters for understanding why California's official numbers can look weirdly low. The standard measure only counts people who are out of work AND actively applying for jobs right now. Discouraged workers, people who stopped looking because they think nothing's out there, don't get counted in that headline figure. Neither do people working 15 hours a week who want full time. Those folks exist in a broader measure but it's not what most people mean when they say the unemployment rate.

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So basically someone who gets frustrated and stops sending applications just... vanishes from the data? That seems like a huge gap in how we understand the job market.

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Exactly right - the broader measure includes those discouraged workers and the involuntary part-timers, and it's always noticeably higher than the headline rate. For EDD purposes though, what matters is that you stay actively looking for work every week you certify.

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This is actually why EDD requires you to be available for work and looking every week to keep getting benefits - if you stop looking you stop qualifying, which kind of mirrors why they stop being counted in the official stats too.

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Nobody told me when I first filed that staying in pending for weeks doesn't mean denied - I panicked and called EDD like six times thinking I needed to refile or something. The agent I finally got through to said pending just means the determination hasn't happened yet, and that refiling would actually restart the clock and make things worse.

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Oh wow, I was literally about to refile because I thought the pending meant something was broken. Thank you for saying this.

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Don't refile! Seriously. The pending weeks can still get paid once EDD makes a decision, but only if you kept certifying them. That's the main thing.

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This is so important - keep certifying no matter what, even if everything shows pending. If you stop certifying those weeks can't be paid back even if you win an appeal later.

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Your nephew's econ question is actually a classic exam setup - the four types you usually see listed are frictional, structural, cyclical and seasonal unemployment, and sometimes they throw in 'voluntary' as a trick. Voluntary unemployment, like someone who quit without another job lined up, doesn't get counted in government unemployment figures the same way because those people are considered to have chosen not to work. But at EDD the question is totally different - EDD cares about why you left and whether you meet eligibility, not what economists call your type of unemployment.

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Wait so if someone quits and can't find work, the government essentially doesn't count them as unemployed in the official stats? That seems like it distorts the picture significantly.

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It can, yeah. If they're actively job searching they'd still be counted because the main test is whether you're looking for work, not whether you quit or were laid off. The voluntary/involuntary distinction matters more for EDD benefits than for the official unemployment count.

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This actually makes my situation clearer - I was laid off so I should be fine on the EDD side, it's just the pending status that's the mystery.

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Three weeks pending with no explanation is rough. When mine went into adjudication EDD eventually scheduled a phone interview and mailed me a DE 4800 with the date and time on it. The interviewer phoned at exactly that time and I just answered my questions about the layoff. After that my pending weeks cleared within about a week. Did you get any mail from EDD besides the DE 429Z?

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Only the DE 429Z so far. No DE 4800, no other letters. Should I be checking my UI Online homepage for interview info too?

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Yes - the scheduled time for the phone interview also shows up on the UI Online homepage, so check there. Sometimes the letter is slower than the homepage update.

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If a phone interview was scheduled you'd see it on the UI Online homepage before the letter arrives sometimes. Keep an eye on that and make sure your phone is on and available during whatever window they give you.

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EDD's hold music genuinely broke me after a few attempts. Sat on hold for over an hour twice and got cut off both times without speaking to anyone. Eventually tried Claimyr to reach a live agent - my claim had a weird situation where my last employer was a staffing agency and the actual work site was a separate company, and I needed someone to explain which employer EDD sent the DE 1101CZ to. The agent confirmed it went to the staffing agency and that their response was pending, which was why my weeks were flagged.

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Staffing agency situations sound like a nightmare for EDD paperwork. At least you found out what was actually happening instead of just sitting in the dark.

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Knowing the specific reason made it so much less stressful. I could actually do something with that information instead of just refreshing UI Online hoping the status changed.

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Staffing agency as the employer of record versus the work site company - that's a genuinely confusing setup for EDD to process. Makes sense it would throw a flag.

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Going back to the government counting question for a second - there's also a category that gets students and recent grads mixed up sometimes. Someone who just finished school and is looking for their first job IS counted as unemployed if they're actively searching. A lot of people assume first-time job seekers don't appear in the stats but they do, as long as they're genuinely looking. For California EDD benefits though that's a different story because you need base period wages to qualify, so a new grad usually can't file a claim.

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So for the official unemployment rate, a new grad job hunting counts, but they can't get EDD benefits because they haven't worked enough to build up a base period. Got it - those two systems measure different things.

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Exactly - the official unemployment rate is about labor market activity, EDD benefits are about whether you earned enough wages in the base period. Completely separate questions even though people conflate them all the time.

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My claim had pending weeks for almost a month and I never got a DE 4800 for a phone interview because it was apparently a straight layoff with no dispute from my employer. EDD just did whatever internal review they do and eventually the payments posted. The waiting is the worst part because there's genuinely nothing you can do except keep certifying and check UI Online every day.

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How did you get through that month mentally? I'm already stressed and it's only been three weeks.

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Honestly I just kept a note on my phone of what I could actually control - certify on time, check UI Online, keep my job search going - and tried not to think about the stuff I couldn't control. It eventually cleared.

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Keeping the job search going is key anyway because EDD requires you to be actively looking for work every week you certify. Focusing on that at least gives you something productive to do while waiting.

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To correct something that might be floating around in this thread - the DE 429Z is not an approval letter. A lot of people see it and think EDD has decided they qualify, but it just lays out the maximum the claim could pay if everything checks out. The actual eligibility decision comes later, and if EDD says no on any week they mail a Notice of Determination (DE 1080CZ) with an appeal form attached. If they say yes you just see the payment post. There's no approval letter that arrives to tell you good news.

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This is a really common mix-up. When I got the DE 429Z I literally texted my sister that I'd been approved. I had not been approved.

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Okay, adding this to my mental model. DE 429Z = claim is set up, not approved. Actual decision shows up as either a payment or a DE 1080CZ denial. Got it.

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Exactly - and if you do get a DE 1080CZ, appeal within 30 days of the mailing date on the notice using the DE 1000M form or a written letter to the address on the notice.

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The CalJOBS registration thing is also worth checking if you haven't done it. EDD sent me a Notice of Requirement to Register for Work (DE 8405) and I had a 21-day window to register on CalJOBS and post a resume. I completely missed this because I was focused on the UI Online stuff and didn't realize it was a separate system. Took me a few days to fix and I was worried it had affected my payments.

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I did register on CalJOBS right after I applied because I saw it mentioned somewhere, but I didn't know about the 21-day window. Good to know that's the actual deadline.

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The 21 days run from the date on the DE 8405, not from when you applied. So check that letter specifically for your deadline. Missing it can stop payments according to what EDD sent me.

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CalJOBS registration is separate from UI Online and a lot of people don't realize EDD is watching for it. If you got the DE 8405, make sure your resume is posted at caljobs.ca.gov before the date on the letter.

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Another thing worth knowing for the exam question - 'frictional' unemployment is the kind that always exists even in a healthy economy because people are between jobs, like someone who quit and is job searching before starting the next thing. That IS counted by the government because those people are actively looking. The stuff that doesn't get counted in the standard measure is people who've given up entirely or are working fewer hours than they want. Might help narrow down the answer depending on what options the exam gives.

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So frictional unemployment is basically the baseline noise in any economy - always there, not a sign of anything broken, and counted in the stats. The uncounted people are the ones who've dropped out of the search entirely.

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Right, and economists sometimes call those dropouts 'discouraged workers' in the broader measure. The gap between the headline rate and the broader rate tells you how many people have basically given up, which can be a more honest picture of the job market.

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My pending weeks finally cleared after I sent a message through UI Online asking for an update. I don't know if that actually did anything or if it was just timing, but it felt like doing something. The agent who replied (by message, not phone) said one of my weeks needed wage verification and they'd processed it. Took about four more days after that message.

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I didn't even know you could send messages through UI Online. Where is that option?

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There's a way to message EDD through your UI Online account - I found it under a help or contact option in the menu. Worth trying if you don't want to sit on hold.

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Messaging through UI Online is slower than the phone but at least you get something in writing. Good for things that aren't urgent but that you want documented.

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Discouraged workers not being counted is actually the most commonly tested answer on econ exams for this exact question. The logic is that someone who has completely stopped looking for work isn't technically in the labor force anymore, so they fall outside the calculation. It's not that the government pretends they don't exist, it's that the standard unemployment rate is calculated as a share of the active labor force, and those folks have exited it.

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So the government unemployment figure is technically unemployment as a percentage of people actively participating in the labor market, not as a percentage of all working-age adults. That's a crucial distinction.

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Exactly. If your nephew's exam question is asking which form is NOT counted, the answer is almost certainly discouraged workers or the voluntarily idle - people outside the labor force entirely.

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For California EDD purposes though, being a 'discouraged worker' in the economic sense doesn't help you file a claim. You still need base period wages and you still need to be actively looking for work every week you certify.

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Had a similar question come up when I went back to work part time while my claim was active. I wasn't sure if working 12 hours a week changed how EDD counted me in their own stats versus how I'd appear in government unemployment numbers. For EDD it meant I was partially employed and I reported my wages each time I certified. The first $25 or 25 percent of what I earned that week, whichever was higher, didn't count against my benefits, and the rest came off my weekly payment.

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So you can work part time and still get some benefits? I didn't realize EDD had a formula for that.

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Yeah - if your weekly benefit amount was, say, $387 and you earned $150 part time, EDD would take the greater of $25 or 25 percent of $150 (which is $37.50) as the disregard, subtract the remaining $112.50 from your $387, and pay you around $274.50 for that week. Report the wages in the week they were earned, not when the paycheck hits.

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The formula described above is accurate - report wages for the week the work was done, use the Report Wages tool in UI Online before certifying that week if you want to work out the math first. Full time work for a week means no benefits for that week regardless of what it paid.

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Structural unemployment is another type that gets tested a lot - that's when someone's skills don't match what employers need anymore, like a factory worker whose job got automated. That does get counted in government unemployment figures as long as the person is still looking for work. The question on the exam is probably pointing toward the type where someone has stopped searching entirely.

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Structural unemployment actually seems like it could last a really long time too, right? Way harder to fix than frictional because it's not just about waiting to match up with an open position.

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Much harder to fix - frictional is about time, structural is about retraining and industry shifts. Both show up in official stats but structural unemployment can persist for years in regions where industries collapse.

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California Training Benefits are actually designed partly for structural situations - if EDD approves you for a training program related to your field being disrupted, you can keep collecting while you retrain without having to show you're searching for work in the old field.

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My EDD phone interview happened last month on my own warehouse layoff claim. The DE 4800 gave the exact time and I kept my phone available. The interviewer asked about my last day, the reason I was given for the layoff, and whether I had any other income. Pretty straightforward for a layoff but I was nervous. After that the pending weeks cleared and payments came through.

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Knowing it's a laid-off situation, do you think I'd get a phone interview at all, or would EDD just clear the pending weeks without one?

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Depends on whether your employer's response matched what you said exactly. If it all lines up EDD might just process it. If anything is flagged they schedule the interview. Either way keep certifying.

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If a phone interview does get scheduled, the time is on both the DE 4800 they mail you and on the UI Online homepage. Don't miss it - if you can't make it, contact EDD at least a day before to try to move it.

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Circling back to the pending situation - three weeks isn't alarming by itself. EDD says a new application takes around three weeks to process and get the first payment out, and that's when things go smoothly. Any adjudication question on top of that adds more time. Keep certifying, check the UI Online homepage for any scheduled interview time, and make sure your CalJOBS registration is complete if you got the DE 8405.

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This actually makes me feel better. Three weeks isn't a red flag by itself, it's just the normal processing time, and anything beyond that is the adjudication layer on top.

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Right - and the payments for those pending weeks can still come through once EDD makes the determination. The pending status doesn't mean lost, it means undecided.

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The 'keep certifying no matter what' advice cannot be said enough. Those pending weeks only get paid if you certified them. Missing a certification is the one thing you can actually control that could hurt you.

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For anyone following along on the econ exam angle - the answer your nephew probably needs is 'discouraged workers' or sometimes phrased as 'people who have stopped looking for work.' Those are outside the official labor force and therefore outside the standard unemployment calculation. Frictional, structural, cyclical and seasonal unemployment all get captured in the headline number as long as the people involved are actively searching.

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I'm going to pass this whole thread to my nephew honestly. Way more context than what his textbook gave him.

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The EDD angle makes it real too - like these aren't just academic categories, they're the actual decisions real people are navigating when their jobs disappear.

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If the exam uses the term 'voluntary unemployment' that could also be the right answer depending on how the question is framed - someone who quit and isn't job searching would be outside the labor force. If they ARE actively searching though, they'd be counted.

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Went through adjudication on a layoff last year and ended up reaching an EDD agent through Claimyr after two weeks of not being able to get past the automated menu. The agent looked at my account and said the pending flag was because my employer hadn't responded to the DE 1101CZ notice yet, and that EDD would follow up with them. Knowing that specific detail made waiting a lot more tolerable than just staring at the word Pending.

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So the agent could actually see which step was stuck? That's exactly the kind of information that would help me stop catastrophizing about this.

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They could see the full status of my file - what had been received, what was still outstanding, which weeks were flagged and why. Way more than what UI Online shows claimants.

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That's the value of actually getting to talk to someone - UI Online gives you the status but not the reason. An agent can tell you the reason, which is completely different information.

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Last thing worth mentioning for your nephew's exam - the exam question is probably phrased as multiple choice with 'people who have given up looking for work' as one of the options. That's going to be the answer almost every time this question appears because those individuals have technically left the labor force, which is the denominator in the unemployment rate calculation. The rate can drop even when job conditions get worse if enough people give up and exit the labor force, which is a known limitation of the statistic.

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The rate dropping because people gave up rather than because they found jobs - that's always struck me as a weird artifact of how the measurement works. Good for the headline number, bad for understanding actual economic conditions.

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Exactly the kind of thing an econ professor loves to test because it shows whether students understand the formula versus just memorizing the terms. Hope your nephew aces it.

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And on my end - still pending but I feel way better equipped now. Going to check UI Online for any interview time, make sure CalJOBS is fully set up, and keep certifying. Thanks everyone.

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