Unemployment lines throughout the nation are slowly growing. In January the country’s jobless rate reached 7.6 percent. This has caused many problems, such as benefits being delayed and phones lines at unemployment offices being tied up so that no one can get through for help. Because of this, many states are trying new things such as automated telephone systems.
Those looking for jobs in Connecticut may soon have to get used a new way of getting their benefits, according to the Hartford Courant. Currently 135,000 residents are without work and there is no telling when this number will stop growing, which can make processing claims very overwhelming for the staff members at local unemployment offices. In order to make it less difficult and to ensure that those with jobs are able to receive their checks in a timely fashion, officials at the State Department of Labor are in the process of making plans to switch a direct deposit system.
Through this system, those without Connecticut jobs who qualify for unemployment benefits will be able to choose from through either a direct deposit into their bank accounts or a debit card that will be provided to them. Currently several states are already using this system, but some workers have issues with it.
Although experts say that switching to this system is a good idea in regards to security, the complaints about it vary. Some workers have said that they have been charge large fees for withdrawing money. Others have experienced the same but for making telephone inquiries about their accounts. Currently unemployed residents are receiving their benefit checks through the mail.
According the Hartrford Courant, State Department of Labor spokesperson Nancy Steffens said that Connecticut stands to save as much as $1 million by switching to this system since it will eliminate expenses associated with printing the checks and mailing them the claimants.
At this time, State officials are still trying to decide which bank would be the best to handle the funds. Steffens says that part of what they are considering is the amount of money claimants will be charged in bank fees. She estimates that somewhere around 60 percent of unemployed workers will chose direct deposit over debit cards.
Governor M. Jodi Rell is in support of the system.
“An unemployment check often serves as a lifeline for those who are out of work, and by providing this service, families will no longer need to worry about stolen checks, mail delays or potential fraud,” Rell said in a statement, according to the Courant. “As we move toward a system that makes sense in our modern society, we can also look forward to reducing postage and printing costs.”