Comptroller report shows New York unemployment payouts, workers' comp, lag most states

A new report by the New York State Comptroller’s Office shows that the state lags behind others when it comes to cash payouts for several social safety net programs meant to help unemployed or injured workers .

 The report, published by Comptroller Thomas P. DiNapoli’s office last week, found that New York State’s maximum payout for unemployment of $504 per week ranked lower than most of the country.

Twenty-nine states, including Massachusetts ($1,033), New Jersey ($854), Vermont ($705), and Texas ($577), offer a higher maximum in unemployment cash benefits.

 The report examined social insurance programs overseen by the state, including unemployment insurance, workers’ comp, and paid family leave, and compared payouts to neighboring states  and states with comparable population sizes.

 “We saw the importance of these benefits in helping employees meet household needs during the pandemic, keeping countless families from slipping into poverty,” DiNapoli said in a statement. 

As of Oct. 5, over 138,000 New Yorkers have claimed unemployment insurance benefits this year, according to the report. The year prior, the state received nearly 170,000 claims for workers’ compensation. More than 163,000 paid family leave claims were paid in 2022, the latest year such data are available. The report did not include data about temporary disability insurance – a type of assistance for non-work-related injuries or illnesses paid for by worker contributions.

 The state’s unemployment benefits system  faced a major road test during the COVID-19 pandemic, when nearly 1.9 million jobs statewide were lost temporarily or otherwise, said Gregory DeFreitas, Hofstra economics professor and director of the university’s Center for the Study of Labor and Democracy.

The state still owes the federal government $6.2 billion in debt from borrowing funds to pay out a record number of unemployment claims spurred by  pandemic job losses, according to the report. 

“We’re only one of three states in debt like that,” DeFreitas said. “What that means is we really can’t raise benefits until we repay that $6.2 billion or raise taxes.”

A 'balancing act'

 Like with the state’s workers’ comp payments, which are capped at $1,171.46 per week and rank 30th in the nation, there are other factors to consider when weighing the effectiveness of such social safety net programs, DeFreitas said.

“With workers’ comp, in addition to the cash benefit, many of those workers are getting medical benefits, which can be very substantial,” DeFreitas said.

Vanessa Baird-Streeter, president and chief executive of the Health and Welfare Council of Long Island, said increasing benefits for New Yorkers is important but has to be weighed against the potential impact on employers.

“We know that New York is one of the highest-cost states for doing business, but there’s a balancing act in place in making sure businesses stay in New York State,” said Baird-Streeter, whose organization helps Islanders apply for safety net programs such as SNAP and Medicaid.

Steven Kent, economics professor at Molloy University's business school, said it's important to note that New York is only among a handful of states that offer temporary disability insurance and paid family leave. Like Baird-Streeter, he emphasized it's important to view what New York offers as a whole package and consider the potential costs to employers who largely fund the state’s safety net. 

“On the one hand you want to make sure the people of New York get very solid benefits," Kent said. "But at the same time, we want to make sure that our local economies are welcoming to all businesses.”