New York unemployment benefits will rise next week, with maximum weekly payment at $869

Starting next week, more than half the jobless individuals in New York State — including about 6,000 on Long Island — will see an increase in their weekly unemployment insurance check.

For those who qualify for the maximum benefit, their checks will go from $504 to $869 per week —  an increase of 72% and the first hike in six years.

The rise is happening because New York earlier this year fully repaid the $10 billion federal loan that it took out during the COVID-19 pandemic to pay jobless benefits. At the time, the state’s Unemployment Insurance Trust Fund was exhausted when 5 million people lost their jobs due to the economic shutdown.

“There’s a federal regulation that says you cannot raise benefits if your trust fund is not solvent, if you have a loan,” state Labor Commissioner Roberta Reardon said. “That’s why we were not able to raise the benefits the way we would have otherwise.”

But with the federal loan now repaid with interest, New York is putting more money into the pockets of the unemployed and eliminating the loan-repayment surcharge paid by employers since the pandemic, she said in an interview.

Newsday asked Reardon and leaders of business and labor groups about the potential effects of increasing unemployment insurance benefits.

How many Long Islanders are unemployed?

As of Sept. 27, there were 12,170 individuals on unemployment in Nassau and Suffolk counties, according to the Labor Department.

“Most people will see their weekly amount go up,” Reardon said.

Where can I find how much more I will be getting?

Go to the Labor Department’s online unemployment benefits calculator.

Benefit amounts are based on an individual’s work history and earnings. The increase hasn’t affected how the benefit level is calculated.

I already receive unemployment benefits. Do I need to do anything to get the higher amount?

No. “If they have an open claim, it will be adjusted automatically,” Reardon said.

Why is the benefit increase so large?

Gov. Kathy Hochul, at a news conference in Manhattan on Wednesday, said she and leaders of the State Legislature agreed to raise the benefit level to where it would've been had the pandemic not taken place because of the hardship endured by the jobless since 2020.

"We realized that [the benefit level] had been suppressed for a number of years...And we said families have waited long enough for relief," she said in response to a Newsday question.

Will there be future increases?

State officials said it's unlikely there will be an increase next year and future ones will depend on the solvency of the unemployment trust fund.

What’s the impact on employers?

The end of surcharges to pay off the federal loan will save the average employer $100 per employee next year and $250 per employee in 2027, according to Labor Department estimates.

The savings will be a boon, particularly for small businesses, according to Matt Cohen, president and CEO of the Long Island Association, a business group.

“The fact that our regional employers no longer have to shoulder the burden of the state’s federal unemployment insurance debt is welcome relief that will certainly help their bottom lines,” he said. “This was a win-win that helps both business owners and their employees.”

What's the impact on workers?

Losing a job and then looking for a new one has financial and emotional consequences for the breadwinner — and all those who rely on them.

Mario Cilento, president of the state AFL-CIO, an umbrella group of unions, said increasing the unemployment benefit "lowers the anxiety level for everyone who finds themselves in this unfortunate position [of losing a job] through no fault of their own...I think it means just as much as the dollars," he said Wednesday in Manhattan.

Any advice for people who are filing for unemployment insurance for the first time?

The application process is automated and labor department employees only become involved if the application isn’t completed fully. This can lead to delays in receiving the first benefit check.

“Please be sure that you fill out every box in the application,” Reardon said. “If you leave something out, the system will not be able to compute your benefit.”

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.