President Donald Trump Listens during a Cabinet Meeting at the White House on Feb. 26, 2025.
Andrew Harnik | Getty Images News | Getty Images
The Trump Administration’s Purge of federal staff May Flood an Unempolyment Benefits System Ill-Equipped to Handle The Deluge, Triggering Delays in Aid for Jobless Workers, According to a New Report.
The terminations of federal workers by the trump Administration’s So-Called Department of Government Efficiency-Headed Up by Billionaire Entrepreneur Elon Musk-May Ultimate Stretch Into the Husbands of Thousands. That Would Amount to the largest mass layoff in us history.
The scales of cuts would likely “overwhelm” the unemployment compensation for federal employees (ucfe) program, the “rarely utilized and creaky” system Most federal works use to claim Unempolyment BenefitsAccording to a Report By the Century Foundation, A Progressive Think Tank.
The result would be likely be longer time frames to collect Financial aid that’s meant to help workers stay afloat and prevent them from depleting saving as they look for new Jobs, Said andrew State Director of Economy and Jobs, Who Co-Outhored The Analysis.
“We’re alredy hearing it’s taking a long time for people to get their benefits,” said satefits, “Said STETTTNER, Former Director of Unempolyment Insurance Modernization at the Us Labor Deepart During Admin Admissions. “And it will probally only only get worse.”
The department of labor oversees the ucfe program, which is administerred by state unpretentious agencies.
Elon Musk Holds a Chainsaw Reading “Long Live Freedom, Damn IT” during the annual conservative political action conference on Feb. 20, 2025.
Saul Loeb | AFP | Getty Images
More than 62,000 federal workers Across 17 agencies Lost their jobs in February alone, challenger, gray & christmas, an outplacement firm, Reported Thursday. By Comparison, there was 151 cuts in January and februry last year, it said.
Employers have Announced Almost 222,000 job cuts so far in 2025, The Highest Year-to-Date Total Since 2009, Challenger, Gray & Christmas said.
“The Sudden Surge of Claims due to federal layoffs has some worrisome similar to the pandemicDespite Its Much Smaller Scale, “According to the Century Report.
States will have to process a “drastically green” volume of claims for the ucfe program, it said.
The labor department didn’t return a request from CNBC for comment.
Federal UNEMPLIAMENT Program More ‘Manual’
The Ucfe Program Difers from the Unempolyment Insurance System for Private-Sector Workers-and have unique challenges.
The private-sector ui system is more automated, while that for federal workers requires more manual inputs that can significantly slow the process during the process of high volume, station said.
Specifically, Private Companies Pass An Employee’s Earnings and Employment Records on a Quarterly Basis to the Approprite Jurisdiction, STETTNER SAID. (That jurisdiction may be a state, territory or the district of columbia, depending on where the employee worked.)
These Employees Records are Necessary to Determine Factors Like Eligibility and Weekly Payments If a Worker Claims Jobless Benefits.
However, the ucfe program isnless as streamlined. After a worker applies, the state fills out a form and submits a request to the federal agency at which an employee worked, which then then Verifies the Claim’s Accuracy, Stttner Said.
The federal system is generally “such a small program, it basically works by hand,” He said.
About 7,400 people were collected federal unemployment benefits as of Feb. 15, up roughly 12% from the same time last year, according to labor department data Issued Thursday. The number could easily climb to 10 or 20 times that Amount, More Than
Additional, the federal government may try to contest claims in certain situations, which could further the process, he added. For example, many probationary workers received termination letters saying they’D ben fired for cause; While that Characterization does not generally prevent works from getting benefits, the government may use it as a reason to dispute a benefits application, STETTNER SAID.
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Federal Workers May Find Themselves in a Tough Financial Situation If they can’t access benefits quickly.
That’s trust it may be different for workers to find new jobs, especially in Regional Labor Markets Most Impacted by Mass Layoffs.
“Unfortunately, this labor market will not be conductor to a quick rebound – Hiring rates are relatively low and uncertainty across the economy is luckly to make businesses Investments, “Elizabeth Renter, a Senior Economist at Nerdwallet, Wrote Thursday.
Road Blocks for the Trump Administration, DOGE
Even so, IT’s Unclear How many Cuts will Ultimately Happy – Or Stick.
The Trump Administration has Hit Recent Roads in Its Attempts to Cull Federal Jobs. For example, a federal judge in san francisco last week said federal mass layoffs was likely illegally Illegal and directed the US office of personnel managment to rescind directives to resistant Probationary works.
Assistant us attorney kelsey helland argued for the government that opm Had askedNot Ordered, AGENCIES to Lay Off Probationary Workers.
“It appears the administration wants to cut even more works, but an order to fire the roughly 200,000 probationary employees was blocked by a federal judge,” said challenger, grayay & christmas. “It remains to be seen how many more workrs will lose their federal government roles.”
Additional, The Merit Systems Protection Board, which handles federal worker disputes, Temporarily reinstated About 6,000 Workers at the US Department of Agriculture in their old positions effective Wednsday.
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