NYS Department of Labor increased unemployment reducing my spending power - anyone else struggling?
Just got my unemployment benefits approved after 6 weeks of adjudication hell and the amount is way less than I expected. Between the reduced income and seeing all my neighbors also out of work, I'm barely buying anything except essentials. My whole neighborhood seems dead - local businesses are struggling because none of us unemployed folks have money to spend. Is this normal? The NYS Department of Labor gave me $380/week but my rent alone is $1200. How are people supposed to maintain any kind of consumer spending on these benefits? I used to go out to eat, buy clothes, support local shops but now I'm counting every penny. Anyone else finding that unemployment has completely changed their spending habits?
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QuantumQuasar
This is exactly what economists call the multiplier effect in reverse. When unemployment rises, consumer demand drops because people have less disposable income. Your NYS Department of Labor benefits are calculated at roughly 50% of your previous wages up to the maximum, so the reduced spending power is by design unfortunately. The system assumes you'll find work quickly, but in reality many people stay on benefits for months.
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Miguel Ramos
•That makes sense but it feels like a vicious cycle. Less spending means more businesses struggle which means more layoffs right?
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Zainab Omar
i'm in the same boat, getting $340/week and can barely afford groceries let alone anything else. haven't bought new clothes in 3 months
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Connor Gallagher
You might want to look into supplemental programs while you're on unemployment. SNAP benefits can help with food costs, and some utility companies have assistance programs. Also make sure you're doing your weekly claims correctly and meeting the job search requirements - the last thing you want is to lose benefits for a technical violation.
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Miguel Ramos
•Good point about the weekly claims. I've been doing my 3 job contacts per week but worried I'm not documenting them right in the system.
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Yara Sayegh
THE WHOLE SYSTEM IS BROKEN!!! They give you barely enough to survive then wonder why the economy tanks. I've been calling NYS Department of Labor for weeks trying to get answers about my reduced benefit amount but can never get through. It's like they WANT us to fail.
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Keisha Johnson
•I had the same problem reaching anyone at NYS Department of Labor until I found this service called Claimyr (claimyr.com). They actually get you connected to real agents instead of sitting on hold forever. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Finally got my benefit calculation explained properly.
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Paolo Longo
Same here with the reduced spending. My unemployment ran out last month and now I'm on standby status while looking for work. The economic impact is real - my local coffee shop closed because too many regular customers like me can't afford $5 lattes anymore.
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CosmicCowboy
totally feel this. unemployment benefits help but they're not meant to maintain your previous lifestyle. i had to move back with my parents because even with benefits i couldn't afford my apartment
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