Unemployment on the Rise: How to Respond to UI Claims

September 21, 2023 | From HRCalifornia Extra

by Mike McCluskey, Senior Technical Editor, CalChamber

After reaching historic lows in January and April of 2023, the unemployment rate is steadily creeping up — reaching 3.8 percent in August, up from 3.5 percent in July, representing a two-year high, according to a U.S. Bureau of Labor Statistics report. Additionally, employment is “rising sharply in 1-in-5 metros,” per recent Glassdoor research, and indicates a potential recession. In fact, one mega-employer needs to cut costs due to a 60 percent profit “slump,” and is doing so by laying off low performers.

As the unemployment rate rises — whether through layoffs, terminations or resignations — it’s a sure bet that claims for unemployment insurance (UI) will follow suit. Here’s a look at how unemployment insurance works and what you must do if presented with a UI claim.

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