NYS Department of Labor says unemployment rate affects benefit extensions - what is the ideal rate of unemployment?
I'm trying to understand something that came up during my weekly claim certification. My cousin mentioned that when unemployment rates hit certain levels, it can trigger extended benefits through NYS Department of Labor. Got me wondering - economists talk about an 'ideal' unemployment rate, but what does that actually mean for us regular folks filing claims? Does NYS track this differently than the feds? I've been on UI for 8 weeks now and just curious how these big picture numbers affect whether programs get extended or cut. Anyone know if there's a target rate that keeps the system stable?
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Brandon Parker
The 'natural rate' economists refer to is usually around 4-5%. At that level, you have people transitioning between jobs (frictional unemployment) plus some structural shifts. NYS Department of Labor uses federal unemployment rate triggers for Extended Benefits - when state rate hits 6.5% for 13 weeks or 120% of previous two years' average, you can get additional weeks. But 'ideal' depends on perspective - workers want job security, employers want available labor pool.
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Chloe Zhang
•So if we're at like 3.8% statewide, that actually means no extended benefits even if individual regions are struggling more?
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Brandon Parker
•Exactly. NYS looks at statewide averages for EB triggers, even though unemployment can vary dramatically between NYC, upstate, and Long Island. Regional differences don't factor into the calculation unfortunately.
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Adriana Cohn
been wondering this too, my weekly claims always ask about work search but nobody explains if they're expecting the job market to get better or worse
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Jace Caspullo
I had trouble getting through to NYS Department of Labor to ask about this exact thing - their phone lines are always jammed. Finally used this service called Claimyr (claimyr.com) that actually got me connected to a real person who explained how unemployment rates affect benefit duration. They have a demo video (https://youtu.be/qyftW-mnTNI) showing how it works. The agent told me that when rates are 'too low' (under 4%), employers complain about labor shortages, but when they're 'too high' (over 6%), the system gets overwhelmed with claims.
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Melody Miles
•interesting, might try that service. did they explain why NYS seems to have different standards than other states for what counts as 'high' unemployment?
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Nathaniel Mikhaylov
THE WHOLE SYSTEM IS RIGGED ANYWAY! They want just enough unemployment to keep wages down but not so much that people demand better benefits. Notice how they never extend benefits when WE need them but corporations get bailouts instantly?? The 'ideal rate' is whatever keeps workers desperate enough to accept garbage wages.
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Eva St. Cyr
•I get the frustration but there are actual economic reasons for the targets. When unemployment gets too low, inflation tends to spike because employers bid up wages to compete for workers. When it's too high, you get deflationary spirals and reduced consumer spending.
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Kristian Bishop
omg this is so confusing, i just want to know if my benefits will get cut off early if unemployment drops too much in my area?? like if they decide the job market is 'good enough' does that mean no more weekly claims??
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Brandon Parker
•Your regular 26 weeks of UI benefits won't be affected by unemployment rates dropping. You'll get those regardless. It's only the Extended Benefits (additional weeks beyond 26) that depend on unemployment rate triggers.
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Adriana Cohn
my brother in law works for the state labor department (not NYS tho) and he says they target around 4.5% because that means almost everyone who wants work can find it, but there's still enough job turnover to keep the economy flexible. dunno if NYS Department of Labor uses the same logic
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