Unemployed Virginians receive fewer benefits than most other unemployed Americans, according to a recent study released by the University's Weldon Cooper Center for Public Service.
The study reported that 35 percent of unemployed Virginians receive benefits, which is lower than the national average of 44 percent.
According to John L. Knapp, co-author of the study and director of business and economics research at the Center, the report analyzed several previous unemployment studies and was designed to provide a portrait of Virginia's unemployment insurance system.
"I thought it would be good to put out a primer on how the Virginia unemployment system works, and, of course, there's always more attention on unemployment when the economy is down," Knapp said. "We have had higher unemployment in recent years, and there's concern about that nationwide."
Knapp said the study recommended at least two changes to Virginia's unemployment insurance system. One would be changing the formula for the tax on employers that funds the Unemployment Insurance Trust Fund in order to redistribute the financial burden of supporting it more equally among Virginia employers.
The study also recommended adding an indexing function to the maximum unemployment benefit so that it would rise annually in conjunction with the average wage rate. Currently, the maximum benefit increases only when the General Assembly passes a law.
The General Assembly, acting on recommendations from previous studies, had already passed laws decreasing the maximum benefit from its artificial post-Sept. 11 high and partially easing the qualifying requirements for benefits, Knapp said.
Knapp characterized the changes as relatively minor and said that the Virginia system, like all unemployment benefit programs, would continue to find a balance between assisting the jobless and avoiding giving laid-off workers an incentive not to continue searching for a job.
"There's always this tension in having a program," Knapp said. "On one hand, it's compassionate and it provides relief. But on the other hand, it can't be overly generous -- people need to have an incentive to find employment."
University graduates are encountering the same problems finding jobs as other unemployed workers, said Kendra Nelsen, director of alumni career services at the University.
"For alumni with seven to ten years of experience looking for a job -- instead of two to three months -- it can take up to 12 months for some of them," Nelsen said.
Nelsen added that in her experience, alumni with more work experience seemed to be having more trouble finding jobs than recent graduates.
"It seems to be harder for folks at mid-career level -- it's been tougher for them than it's been for 23-year-old alums," Nelsen said.
As for unemployment benefits, Nelsen said alumni working at career-track, full-time jobs usually received benefits, but alumni working as interns or part-time often did not.
"Most people are in a position where they get benefits," Nelsen said.
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