When The Pandemic Forced Young Adults To Move Back Home, They Got a Financial Education

“When we face a stressor, we tend to think more about the future,” says Brad Koontz, a financial psychologist and professor at Creighton University in Omaha, Neb. Young adults’ growing openness to discuss finances with their parents and peers, they say, reflects a kind of tribal response among people to the stress of the pandemic.

Here’s a look at what the adult children and parents of three families learned about money — and themselves — in their time of pandemic together. When the pandemic forced 23-year-old Hannah Froling to move into her parents’ townhouse in Southampton, NY in March 2020 to remotely finish her final semester of college, the financial clock began to tick.

Ms Frohling’s parents, Jennifer Schlueter and Matthew Froehling, set to move to their winter home in Florida during the fall of 2020, told her they would need to begin helping support the household in their absence. That means monthly payments of $500 for rent and $250 for family car use. They also set a deadline for Memorial Day 2022 for her to be out of the house. Ms Schlueter says she wanted to provide her daughter with a “soft landing” after the shocking experience of graduating in the middle of a pandemic. But she also wanted Ms Froling to transition to living independently, so the transfer deadline passed.

So, Ms. Froling got two waitress jobs and eventually began to rely on the savings lessons her parents took as they grew up. She has two income streams—cash tips and a regular paycheck that includes her hourly rate and credit card tips. She keeps the cash tips in a savings account and splits the paycheck between a checking account and an investment account linked to an S&P 500 index fund. She has saved about $10,000 since moving back home and started looking for apartments to rent on Long Island.

Saving and managing money doesn’t always come easily to Ms. Froling. While in college, he received an allowance from his parents at the beginning of each semester. “As a freshman, I’ll blow it in the first two months,” she says. So her parents, who both work in finance, seated her and helped her budget by outlining the necessities and luxuries in her spending habits.

But it’s been the past 18 months at home, and the closeness to her parents, which has allowed Ms Froling to be more proactive about her savings and investments, and to put all those lessons into practice. She says many of her money talks happen on family road trips. Her father helps her stay on top of the latest trends in investing and her mother shares strategies for how Ms. Froling can increase her savings and continue to build a foundation for moving out of the family home. Ms. Froling is taking it further by sharing these tips with her coworkers and encouraging some of them to open their own investment accounts.

“The lesson we want to teach her is that she can do this,” says Ms Schlueter, referencing the financial wisdom she is sharing with her daughter rather than just talking to her from being together during the pandemic. got the opportunity to do. via phone or text. That includes discussing expenses such as health and car insurance after Ms. Froling leaves home again.

Ms Froling says, while she often feels like her parents bother her about how much she’s saving, in the end she knows it’s best: “They don’t want me when I If I get out of here, it will fall flat on my face.”

breaking the money taboo

In November 2020, 27-year-old Rogelio Meza left his $1,500-a-month apartment in Austin, Texas, to move into his parents’ home in Laredo.

The move helped him work towards his goal of saving money and becoming a homeowner, says Mr. Meja, who works as a customer-experience manager for a solar-power company. It also allowed him to help his parents, who were battling the financial stress of the pandemic.

When the pandemic struck, her mother, Eudoxia Meja, who works as a cook, noticed that her hours had been cut in half. His father Juan Meja is handicapped and unable to work. Since living with his parents, little Mr. Majora has helped with grocery and utility bills, paying about $700 a month, which still allows him to take out money for a home down-payment. Is.

When he was growing up, Mr. Meja says, his family never talked about money. “Nobody really taught me how to save, nobody taught me about stock options or investment accounts, good versus bad debt.” He relied on friends who worked in finance to teach him about these things, and the conversation helped him understand where his money was going. Now, he says, he has passed on some of this knowledge to his parents.

One day, when an unusually large and overdue utility bill arrived in the mail, Mr. Majora turned it into an opportunity to start sharing his financial wisdom with his family.

“I was like, ‘Okay, let’s talk about it,’” he says, describing what led to several candid conversations about money with his parents. Indeed, after that initial exchange, he basically became the family financial advisor. Mr. Meja helped his parents calculate how much they were spending on groceries and how much they actually needed each month. He also discovered that he had $3,000 in credit-card debt and advised him to use his stimulus money to aggressively pay it off. Using a combination of direct payments from their mother’s wages, incentives and unemployment benefits, they were able to pay off their utility bills and credit-card debt in just a few weeks.

Thereafter, Mr. Meja set up a savings account for her mother and advised her to put forward 20% of her salary into the account. He also plans to help his parents open an investment account and teach them how to grow their money over time. He says being able to pay off his debt gave his parents a new starting point.

Mr. Meja has learned a few things during his stint at home as well. He says that the time he spent with his parents opened his eyes to how little he needed to be happy. For example, before reuniting with his mother and father, he often ordered takeout for lunch and dinner. But the home-cooked food he eats at home, he says, especially his mother’s enchiladas has inspired him to start cooking for himself.

As far as his parents are concerned, they say that talking about money is no longer a taboo in their family, and they will continue to seek financial advice from their son. He plans to move back to Austin in November and complete the purchase of an apartment in the city at that time.

a new perspective

Edgar Mendoza was living the high life in Chicago. The 41-year-old was paying about $3,000 a month for a downtown apartment. He often dined out and had courtside seats at basketball games.

But when the lockdown began, he began to re-evaluate his habits, limiting his activities and his spending. “What Covid taught me is no, I don’t need all that,” says Mr. Mendoza, who deals in sales and invests in startups. In January, he packed his belongings and moved to McAllister, Mont., to be with his mother and stepfather. And he doesn’t plan to leave anytime soon.

Living in Montana with his family, Mr. Mendoza says, he has reinforced the frugal lifestyle he grew up with. When he was young, he says, his mother, Maria Platt, used to tell him to “watch his money.” Now, he saves his money and invests it in places where it can grow.

Ms Platt says she is proud of the progress she has seen in her son and how she has embraced the lessons she has taught him. The family cooks together and they rarely eat out. Mr Mendoza says he is not being asked to pay the rent, but he buys all the groceries.

“He’s changed a lot,” Ms Pratt says of her son. “He used to spend money like crazy. I would talk to him and he’s like, ‘Mom, you’re right about this and you’re right about that.’ Now, in his view, he is motivated to support the family in the long run, and this has prompted him to refocus on his spending habits.

Mr. Mendoza says seeing his mother come home exhausted from work and budgeting his Social Security benefits has made him see his financial future in a new light. It has forced him to think more realistically about what retirement can be like. “When you see that you love someone… it hits you really hard,” he says. “I don’t want it to be me.”

Ms Pratt says her son still has to work on his financial habits. They sometimes forget to buy their groceries and eat food already in the family’s fridge, she says. She would also like to watch him learn to cook.

“I told him that if you make good money, save it,” she says. “I’m not going to live forever…….

By: Taylor Nakagawa

Taylor Nakagawa hails from Chicago, Illinois and earned a master’s degree from the Missouri School of Journalism in 2017. As part of the Audience Voice team, Taylor is focused on experimenting with new story formats to create a healthy environment for community engagement.

Source: When the Pandemic Forced Young Adults to Move Back Home, They Got a Financial Education – WSJ

.

Related Contents:

East Asia’s Economies Face Slowing Growth and Rising Inequality, World Bank Warns

HONG KONG—Most countries in East Asia face major setbacks in recovering from the coronavirus, the World Bank said, adding to concerns that the resurgent pandemic will widen the economic divide between the region and the Western world.

With the notable exception of China, economic activity across the region has sputtered since the second quarter amid outbreaks of the Delta variant of the coronavirus and relatively slow vaccine rollouts, leading some multilateral institutions to cut growth forecasts for most economies in the region and warn about longer-term problems such as rising inequality.

Overall, the economy of East Asia and the Pacific is on track to expand by 7.5% this year, according to forecasts released Tuesday by the World Bank Group, up from its April forecast of 7.4%. But that improvement is all China, now expected to grow 8.5%, up from 8.1%. The outlook for the rest of the region worsened, with the bank now forecasting growth of just 2.5% this year, down from 4.4% in April.

“The economic recovery of developing East Asia and Pacific faces a reversal of fortune,” said Manuela Ferro, an economist at the Washington, D.C.-based institution. The U.S. economy is expected to outpace the world as a whole by expanding 6% this year, the Organization for Economic Cooperation and Development forecast last week.

In Asia, meanwhile, the pandemic’s persistence threatens to deliver “an impoverishing double whammy of slow growth and increasing inequality,” the World Bank warned, calling it the first time the region has faced such an outlook since the turn of the century. The bank sees 24 million more people below the poverty line in Asia this year than it projected earlier.

Last week, the Manila-based Asia Development Bank cut its growth outlook for developing Asia to 7.1%, from 7.3% in April, in large part because Covid-19 outbreaks led to major lockdowns that slowed manufacturing activity in Southeast Asia, a regional export hub. The ADB now forecasts 3.1% growth this year for Southeast Asia, where countries have struggled to ramp up vaccinations, down from 4.4% previously.

Myanmar, Malaysia and Cambodia are among the countries that have imposed lockdowns and social-distancing rules in recent months as Covid-19 infections surged. That has exacerbated global supply-chain disruptions, delaying production of finished goods from clothes to cars as well as commodities, including coffee and palm oil.

Vaccination rates have picked up in Asia, though they still trail the West. As of the end of August, less than one-third of the region’s population had been fully vaccinated, compared with 52% in the U.S. and 58% in the European Union, according to the ADB.

The World Bank predicts that most Asian countries will push vaccination rates up to 60% by the first half of 2022, which it says will allow for a fuller resumption of economic activity—though it won’t be enough to eliminate infections.

Moreover, Asia’s advantage in the global goods trade—a bright spot for the region for much of the past year—is expected to fade.

Export demand for a range of goods, such as machinery and consumer electronics, has slipped as companies and individuals from richer Western countries shift their spending patterns. Supply capacity in those markets has also started to normalize, while higher shipping costs risk further eroding appetite for imports from Asia.

“Global goods import demand peaked in the second quarter of 2020 and regional exports face stronger competitions as other regions recover,” says the World Bank report.

MARKET TRENDS

We have revised our forecast for China’s 2021 growth from 8.4% to 8.2% to account for recent COVID outbreaks and economic underperformance.,China is experiencing a rash of COVID outbreaks driven by the Delta variant. New cases have emerged in cities across the country, such as Nanjing, Ningbo, and Wuhan.,Several indicators signaled a slowdown in July relative to June: industrial value-added growth fell from 8.8% YOY to 8.3% YOY; retail sales growth slowed from 12.1% YOY to 8.5% YOY; urban unemployment rose from 5.0% to 5.1%.

KEY DEVELOPMENTS

Xi Jinping is shifting the government’s focus away from pursuing growth at any cost toward sharing the fruits of growth more evenly across society. This push is reflected in the rising use of the phrase “common prosperity,” which has started to appear frequently in communications across the government, schools, and media.,While the details behind the “common prosperity” push are not yet clear and policy implementation timelines may be extended, the implications of this shift will be wide-ranging.

In the coming years, China’s leadership will show less forbearance to wealthy individuals and large corporations; instead, it will expect them to support its goals for social equality through measures like direct transfers, donations, program development, and tax changes.,China’s regulatory landscape will also shift in favor of industries that are seen to serve lower-income segments and against those seen to serve higher-income segments. For example, companies serving rural and less developed parts of the country are likely to receive a helping hand, while companies selling luxury items and high-end real estate are likely to face increased barriers in the market.

By: Stella Yifan Xie at stella.xie@wsj.com

Source: East Asia’s Economies Face Slowing Growth and Rising Inequality, World Bank Warns – WSJ

.

Related Contents:

 

What the End of Pandemic Unemployment Benefits Means for Your Hiring Plans

The recent expiration of federal unemployment benefits likely won’t ease the hiring crunch. It could make it worse. In the past few months, many business owners have grown to begrudge federal pandemic unemployment assistance, which they viewed as providing a disincentive for people to work and thus contributing to a dearth of would-be workers.

With the expiration of that benefit on September 4, 2021, business owners may like what happens next even less. While the jury is still out on the effect of this latest lapse in enhanced unemployment benefits, which clocked in at $300 a week, above what states pay out, history shows that there is a tradeoff.

When unemployment benefits are cut, in general, there is a slight increase in people looking for work, says Ben Zipperer, in economist for the Economic Policy Institute, a Washington D.C.-based think tank, but that number tends to be small. The largest result by far, he says, has been a massive decrease in spending among those who’ve lost benefits, which also cuts into a company’s bottom line, making it potentially harder to justify bringing on new hires.

It may also cut into the funds businesses can pay for certain positions, which doesn’t inspire people to get back into the workforce, especially during a pandemic when people more aware of the costs of working at a particular job relative to all the other things that matter in their lives.

“Many low-wage employers are having trouble finding workers to work at [modest] because those jobs are much more dangerous now, and the working conditions are much worse than before the pandemic,” says Zipperer.

In April of last year, the government kicked off its federal assistance program for unemployed Americans, providing as many as 7.5 million access to an extra $600 per week, an amount that was later reduced to $300 per week under the Biden Administration. Unemployment benefits were also offered to contract workers and the self-employed, who under normal circumstances do not qualify for assistance. Payments were extended beyond the traditional 26 weeks offered by most states.

While there are currently no immediate plans in Congress to reauthorize this relief, typical state unemployment benefits will continue, thanks in part to the $350 billion in federal assistance provided to the states under the American Rescue Plan. Since the onset of the coronavirus pandemic, the federal government has delivered more than $800 billion in unemployment benefits.

If you’re looking for workers, Tom Sullivan, vice president of small business policy at the U.S. Chamber of Commerce, recommends staying local before all else, and putting the word out as much as possible that you’re hiring. For instance, he notes that a restaurant owner he’s been in contact with found employees by telling customers about job openings directly.

“I think from a small business perspective, all hiring is local, and to that extent, I see remarkable leadership by small businesses trying to capitalize on one of their biggest strengths, and that is their local reputation,” says Sullivan.

By Brit Morse, Assistant editor, Inc.@britnmorse

Source: What the End of Pandemic Unemployment Benefits Means for Your Hiring Plans | Inc.com

.

Related Contents:

Number of days of entitlement to payment per month – Period of entitlement

Definition of Dole

The Effects of Unemployment Insurance Benefits

Energy Supplement – Payment rates on a pension or an allowance

Prime Minister argues $25 per week increase to JobSeeker is ‘appropriate

A Look Back and A Way Forward: Actuarial Views on the Future of the Employment Insurance System

Restoring Financial Governance and Accessibility in the Employment Insurance Program

Text of judgment rendered by the Supreme Court of Canada on Employment Insurance surpluses

Which are the best countries in the world to live in if you are unemployed or disabled

Greeks go back to basics as recession bites

Unemployment benefits in Iceland

European Union web site: your rights in the European Union for transferring unemployment benefits

Work and Income Unemployment Benefit Rates

House bill seeks to triple unemployment benefits from SSS

Unemployment benefit assessment during coronavirus pandemic

How do savings and lump sum pay-outs affect benefits

Not all unemployed people get unemployment benefits; in some states, very few do

The Automatic Fiscal Stabilizers: Quietly Doing Their Thing

Why do Unemployment Benefits Raise Unemployment Durations

The Blind Spot in Romney’s Economic Plan

Does Extending Unemployment Benefits Improve Job Quality

Unemployment Funds in Switzerland

 

‘Easy money’: How International Scam Artists Pulled Off An Epic Theft of Covid Benefits

Russian mobsters, Chinese hackers and Nigerian scammers have used stolen identities to plunder tens of billions of dollars in pandemic aid, officials say. From a report: In June, the FBI got a warrant to hunt through the Google accounts of Abedemi Rufai, a Nigerian state government official.

What they found, they said in a sworn affidavit, was all the ingredients for a “massive” cyberfraud on U.S. government benefits: stolen bank, credit card and tax information of Americans. Money transfers. And emails showing dozens of false unemployment claims in seven states that paid out $350,000.

Rufai was arrested in May at John F. Kennedy International Airport in New York as he prepared to fly first class back to Nigeria, according to court records. He is being held without bail in Washington state, where he has pleaded not guilty to five counts of wire fraud.

Rufai’s case offers a small window into what law enforcement officials and private experts say is the biggest fraud ever perpetrated against the U.S., a significant part of it carried out by foreigners. Russian mobsters, Chinese hackers and Nigerian scammers have used stolen identities to plunder tens of billions of dollars in Covid benefits, spiriting the money overseas in a massive transfer of wealth from U.S. taxpayers, officials and experts say.

And they say it is still happening. Among the ripest targets for the cybertheft have been jobless programs. The federal government cannot say for sure how much of the more than $900 billion in pandemic-related unemployment relief has been stolen, but credible estimates range from $87 million to $400 billion — at least half of which went to foreign criminals, law enforcement officials say.

Those staggering sums dwarf, even on the low end, what the federal government spends every year on intelligence collection, food stamps or K-12 education.

“This is perhaps the single biggest organized fraud heist we’ve ever seen,” said security researcher Armen Najarian of the firm RSA, who tracked a Nigerian fraud ring as it allegedly siphoned millions of dollars out of more than a dozen states.

Jeremy Sheridan, who directs the office of investigations at the Secret Service, called it “the largest fraud scheme that I’ve ever encountered.”

“Due to the volume and pace at which these funds were made available and a lot of the requirements that were lifted in order to release them, criminals seized on that opportunity and were very, very successful — and continue to be successful,” he said.

While the enormous scope of Covid relief fraud has been clear for some time, scant attention has been paid to the role of organized foreign criminal groups, who move taxpayer money overseas via laundering schemes involving payment apps and “money mules,” law enforcement officials said.

“This is like letting people just walk right into Fort Knox and take the gold, and nobody even asked any questions,” said Blake Hall, the CEO of ID.me, which has contracts with 27 states to verify identities.

Officials and analysts say both domestic and foreign fraudsters took advantage of an already weak system of unemployment verification maintained by the states, which has been flagged for years by federal watchdogs. Adding to the vulnerability, states made it easier to apply for Covid benefits online during the pandemic, and officials felt pressure to expedite processing. The federal government also rolled out new benefits for contractors and gig workers that required no employer verification.

In that environment, crooks were easily able to impersonate jobless Americans using stolen identity information for sale in bulk in the dark corners of the internet. The data — birthdates, Social Security numbers, addresses and other private information — have accumulated online for years through huge data breaches, including hacks of Yahoo, LinkedIn, Facebook, Marriott and Experian.

At home, prison inmates and drug gangs got in on the action. But experts say the best-organized efforts came from abroad, with criminals from nearly every country swooping in to steal on an industrial scale.

“They were literally calling this easy money,” said Ronnie Tokazowski, a senior threat researcher at Agari, a security firm, who has been monitoring dark web communications by West African fraud gangs.

In some cases, overseas organized crime groups flooded state unemployment systems with bogus online claims, overwhelming antiquated computer software benefits in blunt-force attacks that siphoned out millions of dollars. On several occasions, states have had to suspend benefit payments while they tried to figure out what was real and what was not.

“It’s definitely an economic attack on the United States,” said FBI Deputy Assistant Director Jay Greenberg, who is investigating cases as part of the Justice Department’s Covid fraud task force. “Tens of billions of dollars will be missing. … It’s a significant amount of money that’s gone overseas.”

Under the Pandemic Unemployment Assistance program for gig workers and contractors, people could apply for retroactive relief, claiming months of joblessness with no employer verification possible. In some cases, that meant checks or debit cards worth $20,000, Hall said.

“Organized crime has never had an opportunity where any American’s identity could be converted into $20,000, and it became their Super Bowl,” he said. “And these states were not equipped to do identity verification, certainly not remote identity verification. And in the first few months and still today, organized crime has just made these states a target.”

Sheridan, whose purview at the Secret Service includes financial crimes, pointed out that the stolen sums far exceed the annual cost of ransomware, a problem estimated to cost the economy $20 billion a year, which has commanded outsize media attention.

The windfall for criminal groups will fuel other types of crime, including drug and human trafficking, he said.

“These groups that are profiting so greatly from these types of schemes, they engage in a host of other crimes,” he said. “Drug trade, crimes against children, more sophisticated cyber-related fraud. And this money is basically an investment to them to conduct more extensive criminal operations … some of which include crimes that will compromise national security.”

Missed opportunities

By the time states recognized the extent of the criminality, the spigot of cash had been gushing for months.

“Nobody really understood how big the problem was until it was playing out,” said Najarian, the RSA security researcher. “We all accepted that there was fraud taking place, organized fraud and local fraud. But what we didn’t realize … was that the organized fraud was very aggressive and very efficient and moving very, very large sums of money offshore.”

The investigative journalism site ProPublica calculated last month that from March to December 2020, the number of jobless claims added up to about two-thirds of the country’s labor force, when the actual unemployment rate was 23 percent. Although some people lose jobs more than once in a given year, that alone could not account for the vast disparity.

The thievery continues. Maryland, for example, in June detected more than half a million potentially fraudulent unemployment claims in May and June alone. Most of the attempts were blocked, but experts say that nationwide, many are still getting through.

The Biden administration has acknowledged the problem and blamed it on the Trump administration.

“There is perhaps no oversight issue inherited by my Administration that is as serious as the exploitation of relief programs by criminal syndicates using stolen identities to steal government benefits,” Biden said in a statement in May as the government announced a Justice Department Covid fraud task force.

The Biden administration has allocated $2 billion to shore up state unemployment systems. That appears to be badly needed, because states have failed to take basic steps to improve identity verification, according to the Labor Department’s inspector general.

In a memo in February, the inspector general reported that as of December, 22 of 54 state and territorial workforce agencies were still not following its repeated recommendation to join a national data exchange to check Social Security numbers. And in July, the inspector general reported that the national association of state workforce agencies had not been sharing fraud data as required by federal regulations.

Twenty states failed to perform all the required database identity checks, and 44 states did not perform all recommended ones, the inspector general found.

“The states have been chronically underfunded for years — they’re running 1980s technology,” Hall said.

Not a victimless crime

Along with the huge losses inflicted on the U.S. Treasury, the criminals also hurt tens of thousands of people, many of whom suffered delays in getting much-needed benefits.

When Yvonne Matlock lost her job last year as a fundraiser for an Indiana addiction treatment center, she applied for unemployment benefits online, like millions of other Americans.

But she was told she was already getting relief money.

“Somebody had gotten ahold of my Social Security number and set up an account in my name. It seems as though it was really easy for them to do,” she said.

She said it was an ordeal to verify her identity with the state and get her benefits.

“I sent them everything but a blood sample,” she said. “I sent my driver’s license, my Social Security card, my gun permit — which they issued, by the way — my W-2 forms.”

“I sent more than what they asked me for and was still denied,” Matlock added.

She finally got the benefits after three months. And then she was victimized again. Somebody else stole her identity and diverted $1,200. Police are investigating.

The detective “said I’ll do my best, [but] the chances of us finding this person are pretty slim,” she said.

So far, there has been relatively little recovery of the stolen cash — or accountability for the criminals who took it.

The FBI has opened about 2,000 investigations, Greenberg said, but it has recovered just $100 million. The Secret Service, which focuses on cyber and economic crimes, has clawed back $1.3 billion. But the vast majority of the pilfered funds are gone for good, experts say, including tens of billions of dollars sent out of the country through money-moving applications such as Cash.app.

‘Sick to my stomach’

The government does not seem to know how much has been stolen.

Through a public records request, NBC News obtained data from the Labor Department, which funds Covid relief unemployment benefits programs, that are riddled with blank values and underestimates. The data list just over a billion dollars in fraud across the three CARES Act unemployment programs — a figure experts say is off by orders of magnitude.

In fact, state officials have made statements that refute their own reporting into the Labor Department data system. California, for example, appears to have reported only $2 million in fraud across CARES Act programs, despite publicly having acknowledged over $11 billion in unemployment fraud after an audit in January. State officials said early this year that projected losses could reach $31 billion.

More than two-thirds of states, 34, reported no cases of identity theft overpayments in the most vulnerable unemployment benefits program. Experts say that simply is not accurate.

The inspector general pointed out in a recent report that the Labor Department reduced testing and reporting requirements on state unemployment systems during the pandemic.

One result is that the public is in the dark about the scope of the fraud.

“It makes me sick to my stomach, particularly when I see how much is coming out of my taxes each month for unemployment,” said John Wilson, Agari’s field chief technology officer.

The inspector general has projected that there will be $87 billion in misspent unemployment funds, a conservative estimate that assumes no spike in fraud rates. Both the inspector general and the FBI declined to offer an estimate of what the actual value of lost funds might be.

ID.me’s estimate of $400 billion comes from the data the company has seen across the states, Hall said.

ID.me implements extra verification steps beyond paper or digital records, requiring people, for example, to prove through FaceTime that their faces match the ones on the drivers’ license. As a result, fraudsters have used Barbie dolls, silicon masks and deep fake videos in an unsuccessful effort to beat the system, he said.

A Nigerian fraud group strikes

One of the few examples in which analysts have pointed the finger at a specific foreign group involves a Nigerian fraud ring dubbed Scattered Canary by security researchers. The group had been committing cyberfraud for years when the pandemic benefits presented a ripe target, Najarian said.

“The moment the pandemic hit, that was the next big thing that they jumped on, and they did a great job exploiting that opportunity,” he said.

Scattered Canary took advantage of a quirk in Google’s system. Gmail does not recognize dots in email addresses — John.Doe@gmail.com and JohnDoe@gmail.com are routed to the same account. But state unemployment systems treated them as distinct email addresses.

Exploiting that trait, the group was able to create dozens of fraudulent state unemployment accounts that funneled benefits to the same email address, according to research by Najarian and others at Agari.

In April and May of 2020, Scattered Canary filed at least 174 fraudulent claims for unemployment benefits with the state of Washington, Agari found — each claim eligible to receive up to $790 a week, for a total of $20,540 over 26 weeks. With the addition of the $600-per-week Covid supplement, the maximum potential loss was $4.7 million for those claims alone, Agari found.

Scattered Canary and other groups made use of so-called money mules — witting or unwitting third parties who moved the stolen funds through bank accounts so they could be transferred out of the country, Najarian said.

Cash App, which describes itself as “the easiest way to send money, spend money, save money, and buy cryptocurrency,” has been frequently used by fraudsters to move money, law enforcement officials and private consultants said.

“When you use the app, you can quickly and easily convert everything over to Bitcoin,” Tokazowski said. “Within like 10 minutes, you can get that cash converted and sent on its way.”

Cash App said in a statement that it has “enhanced our systems to monitor and act upon deposits that we deem to be risky, despite coming from largely trusted sources like state unemployment agencies. We also partner with law enforcement and government agencies to investigate potential fraud and work collaboratively to return those funds when possible.”

Rufai, the Nigerian official, is accused of having used 100 fraudulent claims to steal $350,000. He is being held without bail after having been transferred from New York to Washington state. He has been placed on leave from his government job, said his attorney, Lance Hester.

Federal officials have not linked the cases to Scattered Canary. But at a detention hearing, prosecutors portrayed Rufai as a significant player in cyberfraud going back to 2017.

“This is a defendant who is charged with participating in a massive fraud on the United States,” said Seth Wilkinson, an assistant U.S. attorney in Seattle, according to a public transcript. “It is someone who exploited our country’s efforts to take care of its own people during the biggest emergency of our lifetime.”

Hester said he could not comment because he had not had a chance to speak with his client in detail.

“I know he stands strongly behind his not guilty plea,” Hester said.

By:

Source: ‘Easy money’: How international scam artists pulled off an epic theft of Covid benefits

.

U.S., EU warn of influx of Eritrean troops in Ethiopia’s Tigray

Seniors Under 80 Getting £10k Life Ins For £4/Mo

U.S. Adds Bahamas and 5 More Destinations to Highest COVID-19 Travel Warning Level

Ex-Trump official seeks to disrupt kidney care market with new startup

Maersk Makes $1.4 Billion Green Bet on Methanol-Fueled Ships

How Much Should Solar Panels Cost In 2021?

T. Rowe Price: Latest Research Highlights How Employers Can Help Close Racial And Ethnic Retirement Savings Gaps With Financial Wellness

TransPerfect Continues Investment in Digital Marketing with Webcertain Acquisition

Wills Written in London From Just £19.99

Aramco Deploys Computer Vision with FogHorn Edge AI to Improve Business Operations

Lloyds Could Owe Customers £1,000’s!

Herbert A. Allen Retires from Board of Directors of The Coca-Cola Company

Despite Pandemic, Study Shows Spending On Software Was Up Among SMBs

Tarsier Pharma Raises Capital to Execute Phase-3 Clinical Trial

Knee Surgeons Losing It Over These Knee Sleeves

To Combat Billions In Unemployment Benefit Fraud, Startup SentiLink Raises $70 Million

At least in improper payments, much of it fraud, have been distributed by the Federal government since the pandemic struck in March 2020. In California alone, state officials admitted that as much as of unemployment benefits payments may have been fraudulent.

“Unemployment insurance fraud is probably the biggest fraud issue hitting banks today,” says Naftali Harris, co-founder and CEO at San Francisco’s SentiLink, which just closed a $70 million round of venture capital to expand its business of helping financial institutions detect fake and stolen identities for new account applications.

, a San Francisco-based venture firm, led the Series B round which brings SentiLink’s total capital raised to date to $85 million. Felicis, Andreessen Horowitz and NYCA also joined SentiLink’s latest capital infusion.

SentiLink plans to use the capital raised to continue to help institutions with this recent increase in fraud instances spurred by the CARES Act. They also plan to expand their fraud toolkit to prevent other types of scams, such as and, and investigate new ones.

Harris’ team has seen a huge uptick in fraud rates affecting their clients, as high as 90% among new applications, associated with the CARES Act COVID relief. Fraudsters have been using the same name, social security number or date of birth in several applications, filing in high volumes in several states.

According to Harris, his team is currently verifying around a million account openings per day, and is working with more than 100 financial institutions – due to a non-disclosure agreement Harris could not comment on which financial institutions his company serves.

The company says that beyond simply using artificial intelligence to detect fraud, they have a risk operations team that catches in real time cases of synthetic fraud – a form of identity theft in which the defrauder combines a stolen Social Security Number (SSN) and fake information to create a false identity – that would normally go unnoticed by their clients.

Harris discovered this type of fraud when he was working as a data scientist at Affirm in 2017. At the time, synthetic fraud was relatively unknown, so when he saw that crooks were creating brand new identities instead of stealing  existing ones to apply for credit, he founded SentiLink to focus on tackling this new scam. “We realized this was a really big issue and that nobody in the financial services industry was talking about it,” says Harris.

Now, criminals are creating new identities or stealing existing ones to tap into unemployment benefits. Harris says the problem is not only them stealing from the government, but uncovering the tactics they use to deposit the stolen funds.

“What a lot of people don’t realize is that as a fraudster you have to be able to use the money stolen, and put it into the financial system,” Harris says.

To Harris, the biggest differentiation in SentiLink’s approach is how much it emphasizes “deep understanding of fraud and identity in our models.”

“We have a team of fraud investigators that manually review applications every day looking for fraud, and we use their insights and discoveries in our fraud models and technology,” he told TechCrunch. “This deep understanding is so important to us that every Friday the entire company spends an hour reviewing fraud cases.”

SentiLink, Harris added, focuses on “deeply” understanding fraud and identity, and then using technology to productionalize these insights.  Those discoveries include the deterioration of phone/name match data and uncovering “same name” fraud. “This deep understanding is so important that SentiLink employs a team of risk analysts whose full time job is to investigate new kinds of fraud and discover what the fraudsters are doing,” the company says.

SentiLink, like so many other startups, saw an increase in business during the COVID-19 pandemic. “The various government assistance programs were rife with fraud. This had a cascading effect throughout financial services, where fraudsters that had successfully stolen government money attempted to launder it into the financial system,” Harris said. “As a result we’ve been very busy, particularly with checking and savings accounts that until now have had relatively little fraud.”

genesis-3-1

The startup plans to use its new capital to build out its product suite and do some hiring. Today it has 25 employees, with five accepted offers, and expects to end the year with a headcount of 45-50.

Follow me on  or . Send me a secure .

I’m an assistant editor at Forbes covering money and markets. Before joining Forbes, I worked at NextEra Energy, Inc. developing and implementing successful media relations and public relations campaigns in the energy industry.

I graduated from Stetson University with a degree in Finance, and have a master’s degree in Journalism and International Relations from New York University, where I worked as a staff writer for Latin America News Dispatch and New York Magazine’s Bedford + Bowery.

Source: To Combat Billions In Unemployment Benefit Fraud, Startup SentiLink Raises $70 Million

.

Related Contents:

Amazon’s top Indian seller Cloudtail to cease operations after May 2022

Facebook adds Photobucket and Google Calendar to its data portability options

Canopy raises $15M Series A after posting 4.5x customer growth in H1 2021

CommandBar raises $4.8M to make web-based apps searchable

Wheel the World raises $2M to provide unlimited experiences for travelers with limited accessibility

Wannabe ‘social bank’ Kroo swerves VCs to raise a $24.5M Series A from HNWs

LawVu, a cloud-based platform for in-house legal teams, raises $17M NZD from Insight Partners

Siga secures $8.1M Series B to prevent cyberattacks on critical infrastructure

Moove raises $23M to create flexible options for drivers to own cars in Africa

India’s UpGrad enters unicorn club with $185 million fundraise

Two months after its Series A, Pintu gets $35M in new funding led by Lightspeed

How to claim a student discount for Extra Crunch

Pixels, Palm readers and Pokémon problems

Digital transformation depends on diversity

This Week in Apps: In-app events hit the App Store, TikTok tries Stories, Apple reveals new child safety plan

Building vulnerability into your workflow

China roundup: Games are opium, algorithms need scrutiny

Cities can have flying cars if they start working on infrastructure today

Apple Car Team Held ‘Advanced’ Meetings with South Korea’s SK Group and LG Electronics

Get Lifetime Windows 10 License For Only $12, Microsoft Office For $26, And Much More

Canopy raises $15M Series A after posting 4.5x customer growth in H1 2021 – TechCrunch

Rule The Outdoors With This TOURIT Cooler Backpack For Just $29.59 [You Save $16.40]

LawVu, a cloud-based platform for in-house legal teams, raises $17M NZD from Insight Partners – TechCrunch

Pingdemic Staff Shortages: How Business Can Cope With Isolating Employees

Despite the lifting of most legal COVID-19 restrictions on July 19, the pandemic’s effect on the health, economy and wellbeing of the English public is far from over. The latest development is in the form of the “pingdemic” –- the term referring to the hundreds of thousands of people who have been instructed to self-isolate in recent weeks via the NHS COVID-19 track and trace app.

The so-called pingdemic has had a massively disruptive effect on businesses, who are suffering from widespread staff shortages across sectors. Another casualty is the food supply chain. We are missing items on our supermarket shelves as a result of shortages of workers both because of the pingdemic and Brexit complications.

Meanwhile, there are concerns that people may be deleting or disabling the app, posing a threat to the attempts to control the spread of COVID variants. Business leaders, confused by conflicting government guidance, are now caught between the need to protect their employees’ health and safety, and to avoid the financial impact of closures after many months of lost income.

The government has attempted to combat this through an emergency plan to exempt NHS staff and some key workers, such as in the food supply industry, from isolating if they are pinged, so long as they take daily COVID tests and are fully vaccinated. But food bosses say they have not been properly briefed on what they think is a bureaucratic process to exempt workers.

Get coronavirus updates from health experts

The app, despite its various flaws, is doing what it is designed to do -– businesses cannot ignore requirements to self-isolate, but must be flexible in how they handle employees who have been pinged.

Of course, as has been highlighted throughout the pandemic, there is a vast gap between jobs that can and cannot be done remotely. While no solution will be one-size-fits-all, there are a few things that businesses affected by isolating workers can do to mitigate the disruption and ensure the safety of both their employees and their business success.

How can businesses respond?

Now that we are hopefully on the way out of the depths of the pandemic, the pingdemic calls for businesses to persevere and innovate. This means that in the short term, they may need to rotate employees into different roles, as well as change existing ways of working.

Employers should make workplace changes to reduce the likelihood of contact with others and being pinged – whether this means returning to early-COVID days of social distancing, reduced opening hours, or more people working from home.

If they have not done so already, businesses who can afford to should set up isolation funds, independent of the government’s support payments for low-income individuals, to ensure that workers experience no financial impact from being asked to isolate. If a job cannot be done from home, employers could use the opportunity to invest in remote training or development for workers who are healthy but have been asked to isolate.

For sectors like social care and construction, partnerships with employment agencies could temporarily increase their pool of workers and provide a “safety net” of employees.

Businesses in sectors like retail and hospitality may have to initially operate under reduced hours. But looking to the longer term, they could learn to cope with staff shortages in different ways. For example, a warehouse operative may rotate to an administrative position while they are in isolation, or help to train agency workers remotely, or work on their own development and training.

HGV drivers are currently in high demand due to staff shortages in their industry. This has led to a potentially dangerous situation where some are driving for too many hours. Government plans to improve working conditions and recruit more drivers have not been received well, and industry groups are calling for longer-term proposals to combat the shortage, including better pay and new recruitment techniques.

Business leaders, like all citizens, have a moral responsibility to protect others and prevent further pressure on the NHS. They should respond in a way which protects their employees, and gives them adequate financial protection and flexibility to self-isolate, as well as making workplace changes to reduce the likelihood of being pinged.

Finally, as much as the pingdemic is a concern, it may also be a distraction from wider sociopolitical issues like Brexit, an ageing population, inflation and increasingly also youth unemployment – not to mention the continuing health threat of COVID-19.

Misinformation and outlandish claims are reaching a wider audience now more than ever. The Conversation publishes research-informed journalism by academics to help you understand what’s really happening. Our only aim is to make sure people hear from experts. But without your support, we won’t be able to keep going.

Authors:

Senior Lecturer in International Human Resource Management, University of Portsmouth

Reader in Leadership & Development, Manchester Metropolitan University

Source: Pingdemic staff shortages: how business can cope with isolating employees

.

More Contents:

England’s new contact tracing app fixes privacy problems – whether it will work is another matter

Paying people to self-isolate saves lives and money

How COVID has affected UK businesses – and what happens after July 19

Saving the high street: what to do with empty department stores and shopping centres

Setting goals to beat previous efforts improves educational outcomes. And the gains are bigger for disadvantaged students

How missing out on nursery due to COVID has affected children’s development – new research

Health professionals work in teams: their training should prepare them

COVID school recovery: is England’s £1.4 billion catch-up plan a good idea?

Stress management: six lessons parents can take from pandemic homeschooling

How to bond with your baby if you were separated during the pandemic

Sexism and sport: why body-baring team uniforms are bad for girls and women

Why designing an Olympic logo is so difficult

Life lessons from beekeepers – stop mowing the lawn, don’t pave the driveway and get used to bugs in your salad

How could an Italian gallery sue over use of its public domain art?

Tokyo Olympics: why the stories of elite athletes make for such great childrens’ books

Love Island: how women with ‘fake’ faces have been belittled throughout history

England football fandom’s struggle with its own image

What the Euro 2020 referees can teach the Premier League

The IRS Has 35 Million Tax Returns In Backlog. Here’s How To Track Your Money

The IRS is facing numerous challenges that have caused setbacks in issuing tax refunds this year. A recent National Taxpayer Advocate report confirmed that some 35 million tax returns are yet to be processed and explained the long delays. The tax agency is tasked with more than usual this time of year. Many 2020 tax returns are requiring adjustments or corrections, disbursing stimulus checks, calculating other tax credits and refunding overpayment on 2020 unemployment compensation.

And then there’s the unprecedented situation brought on by the pandemic. The IRS is taking more than the standard 21 days to send refunds — some taxpayers are waiting months. It’s hard to get live assistance by phone, as many callers wait on hold or aren’t connected due to high call volumes. So what if you need your tax money to cover debt or household expenses? How can you check the status of your money without calling the IRS?

We’ll walk you through how to see your personalized refund status online through IRS tracking tools and what to do if you’re waiting for a tax refund on unemployment benefits, as well. For more on economic relief aid, here are some ways to know if you qualify for the child tax credit payments that start next week. If you’re curious about future stimulus payments or the latest infrastructure deal, we can tell you about that, too. This story has been recently updated.

Why is there a tax refund delay this year?

Because of the pandemic, the IRS ran at restricted capacity in 2020, which put a strain on its ability to process tax returns and created a massive backlog. The combination of the shutdown, three rounds of stimulus payments, challenges with paper-filed returns and the tasks related to implementing new tax laws and credits caused a “perfect storm,” according to a National Taxpayer Advocate review of the 2021 filing season to Congress.

The IRS is open again and currently processing mail, tax returns, payments, refunds and correspondence, but limited resources continue to cause delays. Earlier in the tax season, some refunds were already taking longer than 21 days, including those that required manual processing. The IRS said it’s also taking more time for 2020 tax returns that need review, such as determining recovery rebate credit amounts for the first and second stimulus checks — or figuring earned income tax credit and additional child tax credit amounts.

Here’s a list of reasons your refund might be delayed:

  • Your tax return has errors.
  • It’s incomplete.
  • Your refund is suspected of identity theft or fraud.
  • You filed for the earned income tax credit or additional child tax credit.
  • Your return needs further review.
  • Your return includes Form 8379 (PDF), injured spouse allocation — this could take up to 14 weeks to process.

If the delay is due to a necessary tax correction made to a recovery rebate credit, earned income tax or additional child tax credit claimed on your return, the IRS will send you an explanation. If there’s a problem that needs to be fixed, the IRS will first try to proceed without contacting you. However, if it needs any more information, it will write you a letter.

How can you track the status of your refund online?

To check the status of your income tax refund using the IRS tracker tools, you’ll need to give some information: your Social Security number or Individual Taxpayer Identification Number, your filing status — single, married or head of household — and your refund amount in whole dollars, which you can find on your tax return. Also, make sure it’s been at least 24 hours (or up to four weeks if you mailed your return) before you start tracking your refund.

Using the IRS tool Where’s My Refund, go to the Get Refund Status page, enter your SSN or ITIN, your filing status and your exact refund amount, then press Submit. If you entered your information correctly, you’ll be taken to a page that shows your refund status. If not, you may be asked to verify your personal tax data and try again. If all the information looks correct, you’ll need to enter the date you filed your taxes, along with whether you filed electronically or on paper.

The IRS also has a mobile app called IRS2Go that checks your tax refund status. The IRS updates the data in this tool overnight, so if you don’t see a status change after 24 hours or more, check back the following day. Once your return and refund are approved, you’ll receive a personalized date to expect your money.

Where’s My Refund has information on the most recent tax refund that the IRS has on file within the past two years, so if you’re looking for return information from previous years you’ll need to contact the IRS for further help.

How can you check the status of unemployment tax refunds online?

Taxpayers who collected unemployment benefits in 2020 and filed their tax returns early have started to receive additional tax refunds from the IRS. Under new rules from the American Rescue Plan Act of 2021, millions of people who treated their unemployment compensation as income are eligible for a tax break and could get a hefty sum of money back.

However, it’s not easy to track the status of that refund using the online tools above. To find out when the IRS processed your refund and for how much, we recommend locating your tax transcript by logging in to your account and viewing the transactions listed there. We explain how to do that step-by-step.

What is the wait time for a standard tax refund?

The IRS usually issues tax refunds within three weeks, but some taxpayers have been waiting months to receive their payments. If there are any errors, or if you filed a claim for an earned income tax credit or the child tax credit, the wait could be pretty lengthy. If there is an issue holding up your return, the resolution “depends on how quickly and accurately you respond, and the ability of IRS staff trained and working under social distancing requirements to complete the processing of your return,” according to its website.

The date you get your tax refund also depends on how you filed your return. For example, with refunds going into your bank account via direct deposit, it could take an additional five days for your bank to post the money to your account. This means if it took the IRS the full 21 days to issue your check and your bank five days to post it, you could be waiting a total of 26 days to get your money. If you submitted your tax return by mail, the IRS says it could take six to eight weeks for your tax refund to arrive.

What do the IRS tax refund status messages mean?

Both IRS tools (online and mobile app) will show you one of three messages to explain your tax return status.

  • Received: The IRS now has your tax return and is working to process it.
  • Approved: The IRS has processed your return and confirmed the amount of your refund, if you’re owed one.
  • Sent: Your refund is now on its way to your bank via direct deposit or as a paper check sent to your mailbox. (Here’s how to change the address on file if you moved.)

What does an IRS TREAS 310 deposit mean?

If you receive your tax refund by direct deposit, you may see IRS TREAS 310 for the transaction. The 310 identifies the transaction as an IRS tax refund. This would also apply to the case of those receiving an automatic adjustment on their tax return or a refund due to new legislation on tax-free unemployment benefits. You may also see TAX REF in the description field for a refund.

If you see a 449 instead, it means your refund has been offset for delinquent debt.

What is the IRS phone number to check on a tax refund?

The IRS received 167 million calls this tax season, which is four times the number of calls in 2019. And based on the recent report, only seven percent of calls reached a telephone agent for help. While you could try calling the IRS to check your status, the agency’s live phone assistance is extremely limited right now because the IRS says it’s working hard to get through the backlog. You shouldn’t file a second tax return or contact the IRS about the status of your return.

Even though the chances of getting live assistance are slim, the IRS says you should only call if it’s been 21 days or more since you filed your taxes online, or if the Where’s My Refund tool tells you to contact the IRS. Here’s the number to call: 800-829-1040.

Why will a refund come by mail instead of direct deposit?

There are a couple of reasons that your refund would be mailed to you. Your money can only be electronically deposited into a bank account with your name, your spouse’s name or a joint account. If that’s not the reason, you may be getting multiple refund checks, and the IRS can only direct deposit up to three refunds to one account. Additional refunds must be mailed. Lastly, your bank may reject the deposit and this would be the IRS’ next best way to refund your money quickly.

For more information about your 2020 taxes, here’s the latest on federal unemployment benefits on your taxes and everything to know about the third stimulus check.

Katie Teague headshot

 

By:

Source: The IRS has 35 million tax returns in backlog. Here’s how to track your money – CNET

.

Critics:

Tax returns in the United States are reports filed with the Internal Revenue Service (IRS) or with the state or local tax collection agency (California Franchise Tax Board, for example) containing information used to calculate income tax or other taxes. Tax returns are generally prepared using forms prescribed by the IRS or other applicable taxing authority.

Under the Internal Revenue Code returns can be classified as either tax returns or information returns, although the term “tax return” is sometimes used to describe both kinds of returns in a broad sense. Tax returns, in the more narrow sense, are reports of tax liabilities and payments, often including financial information used to compute the tax. A very common federal tax form is IRS Form 1040.

A tax return provides information so that the taxation authority can check on the taxpayer’s calculations, or can determine the amount of tax owed if the taxpayer is not required to calculate that amount. In contrast, an information return is a declaration by some person, such as a third party, providing economic information about one or more potential taxpayers.

References:

US Jobs Report June 2021: Payrolls Jump 850,000, Unemployment Rate at 5.9%

The pace of U.S. hiring accelerated in June, with payrolls increasing by the most in 10 months, suggesting firms are having greater success recruiting workers to keep pace with the economy’s reopening.

Nonfarm payrolls jumped by 850,000 last month, bolstered by strong job gains in leisure and hospitality, a Labor Department report showed Friday. The unemployment rate edged up to 5.9% because more people voluntarily left their jobs and the number of job seekers rose.

The median estimate in a Bloomberg survey of economists was for a 720,000 rise in June payrolls. “Things are picking up,” said Nick Bunker, an economist at the job-search company Indeed. “While labor supply may not be as responsive as some employers might like, they are adding jobs at an increasing rate.”

The gain in payrolls, while well above expectations, doesn’t markedly raise pressure on the Federal Reserve to pare monetary policy support for the economy. Even with the latest advance, U.S. payrolls are still 6.76 million below their pre-pandemic level.

Demand for labor remains robust as employers strive to keep pace with a firming economy, fueled by the lifting of restrictions on business and social activity, mass vaccinations and trillions of dollars in federal relief.

Read more: Black Men’s Labor Force Rises to Largest Ever Amid Recovery

At the same time, a limited supply of labor continues to beleaguer employers, with the number of Americans on payrolls still well below pre-pandemic levels.

Coronavirus concerns, child-care responsibilities and expanded unemployment benefits are all likely contributing to the record number of unfilled positions. Those factors should abate in the coming months though, supporting future hiring.

Wage growth is also picking up as businesses raise pay to attract candidates. The June jobs report showed a hefty 2.3% month-over-month increase in non-supervisory workers’ average hourly earnings in the leisure and hospitality industry. Overall average earnings rose 0.3% last month.

“The strength of our recovery is helping us flip the script,” Biden said in remarks Friday. “Instead of workers competing with each other for jobs that are scarce, employers are competing with each other to attract workers.”

The Labor Department’s figures showed a 343,000 increase in leisure and hospitality payrolls, a sector that’s taking longer to recover because of the pandemic.

Job growth last month was also bolstered by a 188,000 gain in government payrolls. State and local government education employment rose about 230,000, boosted by seasonal adjustments to offset the typical declines seen at the end of the school year.

Hiring was relatively broad-based in June, including other notable gains in business services and retail trade. However, construction payrolls dropped for a third straight month and manufacturing employment rose less than forecast.

“Most of the new jobs now being created are in sectors that were slammed by the pandemic, while companies in other industries are struggling to find available workers,” Sal Guatieri, senior economist at BMO Capital Markets, said in a note.

Read More

The overall participation rate held steady and remained well short of pre-pandemic levels. The employment population ratio, or the share of the population that’s currently working, was also unchanged.

Digging Deeper

  • Average weekly hours decreased to 34.7 hours from 34.8
  • The participation rate for women age 25 to 54 rose by 0.4 percentage point; the rate among men in that age group also climbed
  • The number of Americans classified as long-term unemployed, or those who have been unemployed for 27 weeks or more, increased by the most since November
  • The U-6 rate, also known as the underemployment rate, fell to a pandemic low of 9.8%. The broad measure includes those who are employed part-time for economic reasons and those who have stopped looking for a job because they are discouraged about their job prospects

Stocks opened higher and Treasury securities fluctuated after the report.

 

By and

Source: US Jobs Report June 2021: Payrolls Jump 850,000, Unemployment Rate at 5.9% – Bloomberg

.

Critics:

The labor force is the actual number of people available for work and is the sum of the employed and the unemployed. The U.S. labor force reached a high of 164.6 million persons in February 2020, just at the start of the COVID-19 pandemic in the United States. The U.S. labor force has risen each year since 1960, with the exception of the period following the Great Recession, when it remained below 2008 levels from 2009-2011.

The labor force participation rate, LFPR (or economic activity rate, EAR), is the ratio between the labor force and the overall size of their cohort (national population of the same age range). Much as in other countries in the West, the labor force participation rate in the U.S. increased significantly during the later half of the 20th century, largely because of women entering the workplace in increasing numbers. Labor force participation has declined steadily since 2000, primarily because of the aging and retirement of the Baby Boom generation.

Analyzing labor force participation trends in the prime working age (25-54) cohort helps separate the impact of an aging population from other demographic factors (e.g., gender, race, and education) and government policies. The Congressional Budget Office explained in 2018 that higher educational attainment is correlated with higher labor force participation for workers aged 25–54. Prime-aged men tend to be out of the labor force because of disability, while a key reason for women is caring for family members.

The Congressional Budget Office explained in 2018 higher educational attainment is correlated with higher labor force participation. Prime-aged men tend to be out of the labor force due to disability, while a key reason for women is caring for family members. To the extent an aging population requires the assistance of prime-aged family members at home, this also presents a downward pressure on this cohort’s participation.

See also

Want to Raise Successful Kids? Science Says These 5 Habits Matter Most

I’ve been on a mission, collecting science-based parenting advice both here in my column on Inc.com and in my continuously updated free e-book How to Raise Successful Kids, which you can download here.

Here’s a short but detailed look at five of the most useful studies that I’ve found, and the habits they suggest for successful parents.

1. Be a role model (but not their only role model).

Let’s give the plot twist up front: Kids need great role models, but one of the most important roles you can model is how you deal with failure.

Deal with it honestly, openly, and transparently. Let them see that you do sometimes try and come up short. Because, of course, they will fail at things themselves, and you want to teach them two things:

  • Don’t be afraid or ashamed of failure, especially if they’ve given it their all.
  • Rebound from it the right way.

A few years ago, researchers at the Massachusetts Institute of Technology ran experiments with children as young as 15 months old. The more their parents let them see that they struggled and failed at times, the more resilient the kids became.

“There’s some pressure on parents to make everything look easy,” one of the study’s leads said. “[T]his does at least suggest that it may not be a bad thing to show your children that you are working hard to achieve your goals.”

Beyond that? Make sure they have great role models, both in their lives and in literature.

2. Teach them to love the outdoors.

This advice seems especially timely as we emerge from the pandemic. But kids need to be outside.

Studies show that kids who spent a lot less time outdoors during the early days of the coronavirus crisis experienced a strikingly negative effect on their emotional well-being.

This almost seems like common sense, but we see it come up again and again in both children and adults.

These kinds of habits — and a lifelong appreciation for nature (or not) — can start young, and cost almost nothing.

Against this — and I’m no Luddite, and I know we live in a digital world, but — researchers have found that happiness and well-being among U.S. middle schoolers has declined steadily since 2012.

Hmmm, what happened in 2012? That’s when American kids largely started to get their own smartphones, combined with unlimited data plans.

3. Teach them to prioritize kindness.

A couple of years ago, psychologist and business school professor Adam Grant and his wife, Allison Sweet Grant, wrote a book about kids and kindness. In an article they wrote for The Atlantic around the same time, they made an interesting point:

  • More than 90 percent of U.S. parents say that “one of their top priorities is that their children be caring.”
  • But if you ask children what their parents’ top priorities are for them,  “81 percent say their parents value achievement and happiness over caring.”

There’s a disconnect. And it might stem from people not realizing one of the most fascinating paradoxes, which is that people who demonstrate kindness and caring for others are often more likely to achieve what they want as a result.

As the Grants put it:

Boys who are rated as helpful by their kindergarten teacher earn more money 30 years later. Middle-school students who help, cooperate, and share with their peers also excel–compared with unhelpful classmates, they get better grades and standardized-test scores.

The eighth graders with the greatest academic achievement, moreover, are not the ones who got the best marks five years earlier; they’re the ones who were rated most helpful by their third-grade classmates and teachers.

And middle schoolers who believe their parents value being helpful, respectful, and kind over excelling academically, attending a good college, and having a successful career perform better in school and are less likely to break rules.

We see this in negotiations, too: Develop empathy with the people you’re dealing with, care legitimately about what they want as well as what you want, and you’re more likely to reach a desirable resolution.

4. Praise them the right way.

There are at least three facets of praising kids well that I’ve found in my surveys of the research.

The first is to praise kids for their effort, not their gifts. I’ve gotten a bit of pushback on this idea recently, which I’ll address in a future column. But in short:

  • Good: I’m very proud of you. I saw how hard you studied for that test.
  • Not-so-good: I knew you’d do well on that test. You’re so smart and naturally good at math.

The second is to praise them authentically. Kids aren’t stupid (mostly). They know if you’re blowing smoke when you praise them for things that don’t really merit praise. But they also need reinforcement to know that you’re proud and think they’re doing the right things.

In one study of 300 kids, researchers found that:

When parents perceived that they over- or underpraised their children for schoolwork, children performed worse in school and experienced depression to a greater extent, as compared with children whose parents thought their praise accurately reflected reality.

Finally, however: Be generous with your praise in terms of quantity.

A three-year study out of Brigham Young University found that there’s no magic amount of praise, but it’s helpful to do so as often as possible. One trick might be to break down tasks and praise for each one specifically, as opposed to holding your positive reinforcement until the end of a task.

5. Be there for them, and then some.

This last bit of advice is perhaps the hardest because it flies in the face of one of the parenting clichés we all want to avoid: namely, becoming a helicopter parent.

That said, I’m going to combine studies here, and at least give you food for thought — if not a complete guide.

The bottom line up front is to be there, be vocal, and be involved, while still letting your kids do for themselves as much as they can.

  • Study No. 1: Researchers found that girls whose mothers “nagged the heck out of them” were less likely to become pregnant as teenagers, more likely to go to college, and less likely to have long periods of unemployment or get stuck in dead-end jobs.
  • Study No. 2: A series of studies, actually, found that parents who were quick to run to their children’s side when they faced big challenges or had setbacks — at almost any age — wound up raising kids who were more successful and had better relationships with their parents as they got older.

In short, you’re your child’s parent, and they need you to act like that: guiding them, pushing them, and showing that you’ll always be there for them. Do that much, and you’re doing quite a lot.

By: Bill Murphy Jr., http://www.billmurphyjr.com@BillMurphyJr

Source: Want to Raise Successful Kids? Science Says These 5 Habits Matter Most | Inc.com

.

Critics:

Parenting or child rearing promotes and supports the physical, emotional, social, and intellectual development of a child from infancy to adulthood. Parenting refers to the intricacies of raising a child and not exclusively for a biological relationship. The most common caretaker in parenting is the father or mother, or both, the biological parents of the child in question. However, a surrogate may be an older sibling, a step-parent, a grandparent, a legal guardian, aunt, uncle, other family members, or a family friend.

Governments and society may also have a role in child-rearing. In many cases, orphaned or abandoned children receive parental care from non-parent or non-blood relations. Others may be adopted, raised in foster care, or placed in an orphanage. Parenting skills vary, and a parent or surrogate with good parenting skills may be referred to as a good parent. Parenting styles vary by historical period, race/ethnicity, social class, preference, and a few other social features.

Additionally, research supports that parental history, both in terms of attachments of varying quality and parental psychopathology, particularly in the wake of adverse experiences, can strongly influence parental sensitivity and child outcomes.

Parenting does not usually end when a child turns 18. Support may be needed in a child’s life well beyond the adolescent years and continues into middle and later adulthood. Parenting can be a lifelong process.

Parents may provide financial support to their adult children, which can also include providing an inheritance after death. The life perspective and wisdom given by a parent can benefit their adult children in their own lives. Becoming a grandparent is another milestone and has many similarities with parenting.

See also

New Unemployment Claims Rise For First Time In Nearly Two Months, But Number Of Americans Receiving Benefits Falls Sharply

1

Last week’s new unemployment claims were higher than the previous week’s revised claims of 375,000, which marked the lowest level during the pandemic, and much worse than the 360,000 claims economists were expecting.

The number of Americans filing claims under the Pandemic Unemployment Assistance program, which extends benefits to self-employed workers not eligible for traditional state programs, also jumped, hitting 118,025, according to the weekly data released Thursday.

Despite the rise in new weekly claims, the total number of Americans receiving any form of benefit fell sharply to 14.8 million in the week ending May 29, about 560,000 less than the week prior and much lower than the 30.2 million weekly claims filed in the comparable week last year.

Crucial Quote

“What the claims information doesn’t tell us is how much faster the job market will heal or where so-called full employment will ultimately be because the latest data tells the story of more than 9 million job openings and an equal number of officially unemployed,” Bankrate senior economic analyst Mark Hamrick wrote in a Thursday email, referring to the Federal Reserve’s goal of full employment, which would mean the only people unemployed would be those unable to work. “The easiest part of putting people back to work occurred from May through August of last year, when more than a million jobs per month were added to payrolls.”

Big Number

5.8%. That was the unemployment rate in May, according to the Labor Department’s monthly jobs report, down from 6.1% in April.

What To Watch For

On Wednesday, the Fed said it wants to see more progress in the labor market, which is still down 7.6 million jobs since the onset of the pandemic, before it moves to raise rates and tighten policy. The Fed has long insisted the economy is still fragile and in need of assistance due to the ongoing pandemic, but the central bank is likely to change its messaging in light of expected job growth by the end of this year. Officials on Wednesday said they are looking ahead to two interest rate hikes by the end of 2023—sooner than previously expected.

Key Background

At least 26 states—including Alabama, Mississippi and South Carolina—have announced they will stop participating in the federal government’s supplemental unemployment benefits program, which provides an extra $300 a week to jobless Americans, by July 3. Some officials are claiming the payments disincentivize workers to find jobs, but in a note to clients late last month, JPMorgan economists said the early end to the unemployment insurance, which is set to expire in September, looks “tied to politics, not economics.”

They argued that many of the states that have announced the early reduction are not showing signs of a tight labor market or strong earnings growth—two factors used to justify ending the enhanced benefits. Meanwhile, some states have moved on legislation that would authorize one-time “signing bonuses” for unemployed residents who find work.

Further Reading

Jobless Claims Hit New Pandemic Low, But 15.3 Million Americans Are Still Receiving Unemployment Benefits

Follow me on Twitter. Send me a secure tip.

I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com. And follow me on Twitter @Jon_Ponciano

Source: New Unemployment Claims Rise For First Time In Nearly Two Months, But Number Of Americans Receiving Benefits Falls Sharply

.

Critics:

Unemployment benefits, also called unemployment insurance, unemployment payment, unemployment compensation, or simply unemployment, are payments made by authorized bodies to unemployed people.

The first modern unemployment benefit scheme was introduced in the United Kingdom with the National Insurance Act 1911, under the Liberal Party government of H. H. Asquith. The popular measures were to combat the increasing influence of the Labour Party among the country’s working-class population.

The Act gave the British working classes a contributory system of insurance against illness and unemployment. It only applied to wage earners, however, and their families and the unwaged had to rely on other sources of support, if any.Key figures in the implementation of the Act included Robert Laurie Morant, and William Braithwaite.

Across the world, 72 countries offer a form of unemployment benefits. This includes all 37 OECD countries. Among OECD countries for a hypothetical 40-year-old unemployment benefit applicant, the US and Slovakia are the least generous for potential benefit duration lengths, with PBD of six months. More generous OECD countries are Sweden (35 months PBD) and Iceland (36 months PBD); in Belgium, the PBD is indefinite.

The Unemployment Insurance Act 1920 created the dole system of payments for unemployed workers in the United Kingdom. The dole system provided 39 weeks of unemployment benefits to over 11 million workers—practically the entire civilian working population except domestic service, farmworkers, railroad men, and civil servants.

Unemployment benefits were introduced in Germany in 1927, and in most European countries in the period after the Second World War with the expansion of the welfare state. Unemployment insurance in the United States originated in Wisconsin in 1932.Through the Social Security Act of 1935, the federal government of the United States effectively encouraged the individual states to adopt unemployment insurance plans.

Job sharing or work sharing and short time or short-time working refer to situations or systems in which employees agree to or are forced to accept a reduction in working time and pay. These can be based on individual agreements or on government programs in many countries that try to prevent unemployment. In these, employers have the option of reducing work hours to part-time for many employees instead of laying off some of them and retaining only full-time workers. For example, employees in 27 states of the United States can then receive unemployment payments for the hours they are no longer working.

International Labour Convention

International Labour Organization has adopted the Employment Promotion and Protection against Unemployment Convention, 1988 for promotion of employment against unemployment and social security including unemployment benefit.

See also

%d bloggers like this: