Michigan unemployment

Four years before Steve Gray took over the Michigan Unemployment Insurance Agency, he exposed a false fraud scandal that rocked state government and prompted reforms. Now, some lawmakers are calling for his ouster as he tries to fix a system crushed by record jobless claims amid the coronavirus pandemic.

Authorities say a contract employee used "insider access" to approve hundreds of illegitimate claims beginning in April, during a historic wave of layoffs promoted by the virus and economic shutdown orders.

Federal monthly data and three economic surveys show that many Detroit workers aren’t returning to work at a rate higher than most of the state and nation. It’s too soon to gauge permanent job loss, a U-M survey contends.

Michigan officials aren’t saying how many cases of unemployment insurance fraud investigators have found so far, but roughly 58,000 residents have self-reported that someone stole their identity to try to claim benefits.

More than 11,800 Michigan workers who filed for jobless benefits between March 15 and May 1 have yet to be paid or denied, but the state unemployment agency said Tuesday it intends to clear that backlog by July 4.

Directing cash to those who need it most channels dollars to businesses, which employ more workers, who, in turn, have income to spend.

The state’s investigation into international fraud found 1 in 5 frozen accounts are still considered suspicious.

Jobless workers continue to say they’re struggling to reach Unemployment Insurance Agency employees to resolve issues with unpaid claims that in some cases may go back months

‘How do we get people back to work when there’s really no incentive for them to?’ asked one employer about not being able to compete for workers earning generous jobless benefits.

Benefits have been restored to 140,000 people, but an additional 200,000 new claims now require verification as the state confronts identity theft.

About 340,000 accounts in the state’s jobless benefit system received ‘stop payment’ alerts in May when officials launched an investigation into identity fraud. Now, lawmakers and the jobless are becoming frustrated over the agency’s lack of answers about the probe.

The state of Michigan has frozen 340,000 unemployment accounts, blocking cash assistance for jobless residents while it investigates suspected fraud by imposters seeking to take advantage of enhanced benefits during the COVID-19 pandemic, officials said Friday.

Gov. Gretchen Whitmer is utilizing a federal “work share” program to furlough state employees one day per week. Because of federal benefits, many state workers will earn more than they would have working five days per week.

A Michigan senator urges changes to what he calls outdated rules and burdensome requirements that are barriers for applicants seeking unemployment benefits.

“Are we heading toward another lost decade?” CEO Rich Studley recently tweeted.

State legislators got their first look at overall jobless claims Wednesday after two months of coronavirus layoffs. Eight percent of applicants still await payments.

With 1.3 million residents filing for jobless benefits, the system is under a spotlight. Now, some policy experts and Democrats say, it’s time to revise it. Business leaders aren’t sure.

Gov. Gretchen Whitmer signed an executive order this week, changing the review process for benefits. The state hopes that step gets money to unemployed workers more quickly.

Coronavirus is still battering the state’s restaurant industry, which lost $1.2 billion in sales in April and saw 75 percent of workers laid off. Switching to carry-out and opening for fewer patrons may not be enough for many to survive.

Businesses in the northeast Lower Peninsula say some workers are not quite ready to return to their jobs, given the boost in income they receive from special federal and state funding during the pandemic lockdown.