Country-How Germany Has Addressed Unemployment
Unemployment poses a serious concern in almost every country. However, some countries, such as Germany, have implemented measures to address the problem and reduce unemployment rates. The country’s unemployment rate has been decreasing since 2005, from about 11.7% to the current 5.2%. The country offers subsidies, especially for short-time working programs, to maintain the employee-employer relationship. It also implements the Hartz reforms to stem long-term unemployment. The Hartz reforms include job placement programs that help match individual qualifications with available job opportunities, reducing unemployment (Spermann, 2015). Moreover, the country combines short-term in-work support with post-employment aspects to offer sustainable employment to welfare recipients and the unemployed.
Agency that Deals with Unemployment
The Pennsylvania Department of Labor and Industry’s Unemployment Compensation Office is one of the state agencies that deal with unemployment issues in Pennsylvania. The agency offers workers’ compensation and unemployment compensation services. Other services include the Trade Adjustment Assistance that helps individuals who became unemployed due to increased imports, the unemployment compensation for Federal Civilian Employees, ex-service members (UCX), disaster unemployment assistance (DUA), interstate claims, and federal extensions (Commonwealth of Pennsylvania, 2020). The advantage of these services includes cushioning the unemployed and reducing the effects of unemployment in Philadelphia. The disadvantages include straining the system that may force the state and the city into a financial hole, depleting government unemployment insurance funds, and forcing the state to borrow additional funds that may be repaid on higher insurance taxes later.
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How Unemployment Has Affected the Philadelphia Community
Unemployment has adverse effects. In Philadelphia, unemployment has made poverty a persistent problem. While the poverty rate has been reducing in other cities, it stands at 26 percent in Philadelphia. Furthermore, unemployment is linked to poor health since it causes certain illnesses and worsens chronic conditions. It may also increase drug overdose deaths as people seek solace in drugs. In 2017, the city recorded 65.2 deaths for every 100,000, the second-highest in the country (Pew, 2019). Besides, it is detrimental to the Philadelphia community because it wastes resources by reducing the GDP. It also results in a lasting loss in human capital, reducing long-term growth projections. Unemployment also increases fiscal costs for Philadelphia since it forces the city officials to spend more while collecting lower taxes. It also results in increased social division, especially in families. This aspect may be linked to the increasing rates of homicide in the city. Although the city has witnessed a drop in violent crime, it recorded an increase in homicide rates between 2014 and 2018 (Pew, 2019). Moreover, unemployment has increased the number of individuals seeking state benefits, increasing expenditures.
The Philadelphia community is providing unemployment benefits to the unemployed through various state agencies. These benefits fall under the Federal Cares Act that defines unemployment as having less or no work. It also covers the self-employed who record less business than usual. In Philadelphia, the program includes individuals who have worked or those who were self-employed for the last 18 months under the regular unemployment compensation (UC) program. It also covers those who have exhausted their UC benefits under the pandemic emergency unemployment compensation (PEUC). Moreover, the Pennsylvania Extended Benefits (EB) includes unemployed city dwellers, who have exhausted their UC and PEUC benefits, up to almost 13 weeks (Commonwealth of Pennsylvania, 2020). The Pandemic Unemployment Assistance (PUA) covers individuals affected by the pandemic, such as COVID-19, for about 39 weeks.
Agency Interventions That Have Worked
The Pennsylvania Department of Labor and Industry's Unemployment Compensation Office has various interventions to deal with unemployment in the state. Various agency interventions have worked and helped address the issue of unemployment. These interventions include the unemployment compensation program that offers temporary income for individuals who have lost their jobs or work for fewer hours. The agency has managed to give regular unemployment compensation benefits to the unemployed and offered them temporary income. Unemployment insurance intervention has also worked and created additional employment opportunities as the unemployed spend the benefits on various necessities increasing demand.
Agency Interventions That Have Failed
Although some agency interventions have worked, others have failed. The agency has failed to disburse the federal supplement that seeks to cushion the unemployed during pandemics. In this case, individuals are supposed to receive both the regular unemployment compensation benefits and federal benefits (Murrel, 2020). However, the agency has failed to provide the federal benefits to a significant number of people, especially those working as freelancers. Other interventions that have failed include programs aimed at protecting drivers such as the minimum-wage programs.
Problems Arising from Existing Solutions
Various problems have arisen from existing solutions. Technological challenges have limited a significant number of the unemployed from making the claims and benefiting from the state programs. Some applicants claim that the site is crashed, making it inaccessible. Other technological challenges include a lack of proper guidance on the agency's web portal. Increased traffic and outdated technology, due to the increasing unemployment rate, are also attributed to the slowdown and crashing of the site (Pressgrove, 2020). Another problem arising from these solutions include staffing challenges. While the number of unemployed increases, the number of personnel handling them remains the same. This aspect makes the agency to struggle with the unemployment claims.
Actions Needed
Various actions can be taken to solve the problem of unemployment in Philadelphia. One of the actions is lowering interest rates. Low-interest rates enable businesses to borrow more to expand their businesses and employ an additional number of people reducing unemployment. Another action is increased government spending in the form of job opportunities. The state government needs to create programs that employ individuals directly and contract with other organizations to provide services to its citizens. Another action is increasing funding in the education sector to nurture individuals who can create additional jobs.
Human Service Positions
One of the human service professional positions at the Pennsylvania Department of Labor and Industry's Unemployment Compensation Office is the secretarial position. This position has no specific qualifications, and the governor nominates the individual to the state senate. This individual ensures the implementation of various programs, such as unemployment benefits, vocational rehabilitation for the disabled, and workers' compensation benefits.
Another position is the director's position. The director's responsibilities include oversight of unemployment compensation taxes, workers' compensation benefits, and the State Workers Insurance Fund (SWIF). Other duties include administration of workforce and training programs and vocational rehabilitation services to the disabled and enforcement of labor-related policies and workplace safety policies. The individual should have a background in legal matters to perform the oversight role effectively.
Access to Services
Clients can access agency services through the agency's website. They file an initial claim online and receive a confirmation email that will guide them on their biweekly claim schedule. They then file their biweekly claims a fortnight after the initial claim. Clients begin receiving their payments between 2-3 days after filing a biweekly claim. Information on the procedure and requirements of filing claims is available on the agency's website.
Factors That May Discourage Families from Seeking the Agency Services
One of the factors is the slow service delivery due to a high number of people seeking the same services. The agency requires clients to make claims through online platforms with limited access to their offices. Another factor is the outdated technology used by the agency. Clients are supposed to file claims online even though the agency uses slow and outdated technology. The website is prone to site-crashing discouraging families from seeking these services. Another factor is the limited staff that feels overburdened, slowing down the process of filing, and receiving claims (The Patriot News, 2020). The state should consider employing additional staff and improving its website with the latest technology to serve a high number of clients.
References
Commonwealth of Pennsylvania. (2020). Unemployment Compensation Guide . Retrieved from Commonwealth of Pennsylvania: https://www.uc.pa.gov/unemployment-benefits/UCGuide/Pages/default.aspx
Murrel, D. (2020, June 5). Gig workers were supposed to get unemployment benefits. They haven’t received any yet. Philadelphia Magazine .
Pew. (2019). Philadelphia 2019: The state of the city. Philadelphia: The Pew Charitable Trusts.
Pressgrove, J. (2020, May 27). Staffing issues complicate unemployment agency tech woes . Retrieved from Government Technology: https://www.governing.com/work/Staffing-Issues-Complicate-Unemployment-Agency-Tech-Woes.html
Spermann, A. (2015). How to Fight Long-Term Unemployment: Lessons from Germany. Institute for the Study of Labor (IZA).
The Patriot News. (2020, March 31). Pennsylvania Unemployment System Struggles Amid Claims Surge. The Patriot News .
