Jobless Claims Rarer Than Overpayments – Business Insider
Among consumers eligible for unemployment benefits, just one-third actually bother to cash in, according to new data from the Federal Reserve Bank of St. Louis.
The data applies to the last 22 years (1989 to 2011), save for during the recession, when elligible claims rose to 50 percent.
The findings are key for a couple of reasons.
Back in July, CNN Money cited data that showed that the Dept. of Labor had overpaid jobless claims by no less than $14 billion in 2011. In 2009, it was estimated that 11 percent of all claims were overpaid, for a total of about $11 billion.
But since so many elligible workers are actually leaving their cash on the table, the agency should be more than capable of making up for lost funds.
For example, the 50 percent of workers who didn’t apply for benefits in 2009 saved the government an estimated $108 billion.