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Jamal Wilson

What is classical unemployment and how does it affect Washington ESD benefits?

I keep hearing economists and policy makers talk about 'classical unemployment' but I'm not sure what this means for people like me who are actually filing for Washington ESD benefits. I lost my manufacturing job 6 weeks ago when my company downsized due to automation, and I'm wondering if this counts as classical unemployment? Does it matter for my UI claim or weekly certification process? My claim was approved but I want to understand the bigger picture of why so many people in my industry are out of work right now.

Mei Lin

Classical unemployment is when job losses happen because wages are too high compared to what employers want to pay, so they hire fewer workers or invest in automation instead. Your situation with the manufacturing job sounds like it could fit - companies replacing workers with machines is a classic example. For Washington ESD purposes though, it doesn't matter what type of unemployment caused your job loss, just that you meet the eligibility requirements.

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That makes sense about the automation part. So Washington ESD doesn't categorize unemployment types when processing claims?

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Mei Lin

Exactly right. Washington ESD just looks at whether you lost work through no fault of your own, can work, are available for work, and meet the monetary requirements. The economic theory behind why unemployment exists doesn't factor into your individual claim.

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I think there's some confusion here about classical vs other types of unemployment. Classical unemployment specifically refers to situations where real wages are above the market-clearing level, often due to minimum wage laws or union contracts. It's different from cyclical unemployment (recession-related) or structural unemployment (skills mismatch). But like the previous poster said, Washington ESD doesn't care about these distinctions when processing your UI claim.

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This is getting too academic for me lol. All I know is I've been trying to reach Washington ESD about my pending adjudication for weeks and can't get through on the phone.

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Have you tried calling right when they open at 8am? That's usually the best time to get through to an actual person at Washington ESD.

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I've tried everything including calling at 8am sharp. Always get the busy signal or sit on hold for hours before getting disconnected.

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If you're having trouble reaching Washington ESD by phone, you might want to check out Claimyr (claimyr.com). They have this service that helps people get through to Washington ESD agents without sitting on hold for hours. I used it last month when my weekly claim got flagged and couldn't get through the normal way. There's even a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

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Is this legit? I'm desperate at this point but don't want to get scammed.

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Yeah it's real. They basically monitor the Washington ESD phone lines and call you back when they detect an agent is available. Saved me hours of redialing and actually got me connected to someone who could help with my claim issue.

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I used Claimyr too after seeing it mentioned in another thread. Worth it just to avoid the endless busy signals and hold music.

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getting back to the original question - classical unemployment is basically when there are people willing to work at lower wages but employers still won't hire them. it happens when wages get stuck above what the market would naturally set. this is different from when people lose jobs because of recessions or because their skills become outdated

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So in my case with the manufacturing plant, they replaced us with robots even though we would have taken pay cuts to keep our jobs. Is that classical unemployment then?

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that's more like structural unemployment actually. classical unemployment would be if they wanted to hire people at $12/hour but minimum wage forced them to pay $15/hour so they just hired fewer workers instead

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All these unemployment categories are just ways for economists to explain why the job market sucks. Whether it's classical, structural, cyclical, or whatever - we're all just trying to pay our bills while waiting for Washington ESD to process our claims! The system is broken no matter what fancy name they give to our situation.

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I hear you on that. Just trying to understand why my whole industry seems to be disappearing.

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Same boat here. Lost my retail job when they automated the checkout process. Don't care what type of unemployment it is, just need my UI benefits to come through.

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Classical unemployment theory comes from economists who think markets always clear naturally if left alone. They blame unemployment on things like minimum wage laws, unions, or government interference preventing wages from falling to 'natural' levels. In reality most unemployment we see is from business cycles, technological changes, or structural shifts in the economy.

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This sounds like the kind of stuff they teach in econ 101 but doesn't really apply to real world situations

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Pretty much. It's useful as a theoretical framework but most actual unemployment doesn't fit neatly into these categories. What matters for Washington ESD claimants is just meeting the eligibility requirements.

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I think the key point for Washington ESD purposes is that they don't distinguish between different causes of unemployment when determining benefit eligibility. Whether your job loss fits the classical model or any other economic theory, you still need to file your weekly claims, do your job search activities, and meet all the standard requirements.

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Good point. I've been overthinking this when I should just focus on my weekly certifications and job search log.

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Exactly! Keep it simple - file your weekly claims on time, document your job search efforts, and don't worry about what economists call your situation.

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For what it's worth, I had a similar situation in food service where they installed self-ordering kiosks and cut staff by 60%. My Washington ESD claim went through fine and they never asked about the specific reason for the layoffs. Just had to verify I was laid off through no fault of my own.

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That's reassuring. How long did your claim take to get approved?

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About 3 weeks from filing to first payment. Had to do the standard ID verification but no major issues.

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The automation thing is happening everywhere. My brother lost his warehouse job to robots, my sister's bank branch closed because of online banking, and now AI is threatening office jobs too. Classical unemployment theory doesn't really account for how fast technology is changing the job market.

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True, and Washington ESD's job search requirements haven't really adapted to how different the job market is now compared to even 5 years ago.

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Yeah I'm finding that a lot of the jobs I'm applying for require completely different skills than what I had in manufacturing.

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Just want to echo what someone said earlier about Claimyr if you're having trouble reaching Washington ESD. I was stuck in adjudication hell for a month and couldn't get anyone on the phone to explain what was happening. Used their service and finally got connected to an agent who cleared up the issue in 10 minutes.

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How much does something like that cost?

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They don't charge upfront or anything sketchy like that. Just helped me get through when I couldn't do it myself. Way better than sitting on hold for hours just to get disconnected.

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Classical unemployment is supposed to be voluntary in theory - like workers choosing not to accept lower wages. But most of what we see in the real world is involuntary unemployment where people want to work but can't find jobs at any reasonable wage. The manufacturing job losses you're talking about definitely fall into that category.

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Right, we definitely didn't choose to lose our jobs. The plant just decided robots were more cost-effective.

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That's the thing about economic theories - they often don't match what actually happens to working people.

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honestly just focus on getting your UI benefits and finding new work. all this economic theory stuff is interesting but won't help you pay rent. make sure you're doing your job search activities and keeping good records for Washington ESD

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You're right. I've been keeping track of all my applications in WorkSourceWA like they require.

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Good call on using WorkSourceWA. Makes the weekly reporting much easier when everything is already logged there.

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From a practical standpoint, Washington ESD mainly cares about whether you're able and available for work, actively seeking employment, and meeting your weekly claim requirements. The economic classification of your unemployment situation isn't something they factor into benefit decisions.

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That's what I figured. Thanks for confirming that Washington ESD keeps it straightforward.

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Yeah, they have enough trouble just processing regular claims without getting into economic theory!

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One thing to keep in mind is that even if your job loss fits the classical unemployment model, you might still be eligible for additional training programs or resources through WorkSourceWA if your industry is declining. Worth looking into if manufacturing jobs are becoming harder to find in your area.

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I hadn't thought about retraining programs. Are those separate from regular UI benefits?

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You can usually do approved training while still receiving UI benefits. Check with your local WorkSource office about what programs might be available for displaced manufacturing workers.

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The bottom line is that classical unemployment is just one way economists try to explain job market problems. Whether your situation fits that model or not, Washington ESD will process your claim based on their standard eligibility criteria. Don't overthink it - just make sure you're meeting all the requirements for your weekly claims.

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Thanks everyone for the explanations and advice. Really helpful to understand both the theory and the practical Washington ESD stuff.

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No problem! Good luck with your job search and hope your UI claim continues going smoothly.

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