This week, thousands of New Yorkers are on furlough due to the government shutdown. However, they could still see cash in their bank accounts if they apply for unemployment benefits. But what does this mean for our nation's economy as a whole? Innae Park explains.
ALBANY, N.Y. -- In just the first two days of the federal government shutdown, over 2,000 New Yorkers have applied for unemployment insurance as a result of being furloughed.
New York State Department of Labor Assistant Communications Director Chris White said, “There are a number of different factors involved to determine if someone qualified for unemployment insurance.”
If approved, they may not get to keep it.
White explained, “If the government decides to begin to pay people retroactively beginning October 1, we would ask that they pay back those benefits.”
That's if, and when, this freeze ends. If it doesn't, it could have major implications on the economy.
Dan Moran, the president and founder of Next-Act, said, “If we were to get this [the shutdown] out to two weeks, to three weeks or more, that's when you'd start seeing a lot of things happening with businesses, who would get absolutely paranoid and stop hiring.”
He says these uncertainties are pointing toward a greater employment trend.
“The conventional thought is once you're in a state or federal job, you're done. You're never going to go anywhere. That's not the case today,” Moran said. “The days of having security in employment, when you went to work for a company and you got the gold watch and you went and sat in the rocking chair, that's over.”
He added, “There's been a significant decrease in public sector employment. And that's happening across the nation.”
Even without the comfort in career, there can still be a cushion of security.
Moran urges, “Always be looking for the next job, because you never know when things will change.”
It’s a fall-back in a time of furloughs.
In New York, there is one week that is unpaid before the benefits kick in.
For more information:
To file for unemployment online, visit: applications.labor.ny.gov
To file over the phone, contact: 1-888-209-8124 for New York State residents, or 1-877-358-5306 for out of state residents