COVID-19 Update State of Illinois

Monday, November 23, 2020 PANDEMIC-RELATED UNEMPLOYMENT EXCEEDS PREVIOUS RECESSIONS

Cumulative Regular UI Initial Claims Comparison to Recent Recessions 2,400,000

2,000,000

1,600,000

1,200,000

800,000

400,000

0 1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 Weeks Since Beginning of Recession 2001 Recession 2008 Recession 2020 Recession State of Illinois COVID-19 Update Nov. 23, 2020 ILLINOIS RESPONDS TO SUPPORT WORKERS

IDES efforts to increase access to benefits and support employers

Easing Certification Requirements Waiving the Waiting Week • Assisting individuals laid off due to a temporary closing • With support from Governor and legislature, waived UI of a business to continue to qualify for benefits. waiting week, granting claimants an extra week of • Expanding the definition of “able and available to work” benefits during their first payment. to help claimants certify.

Non-Instructional Academic Statements of Benefit Charges Employees • With legislature’s support, adjusted employer reporting • With legislature’s support, accommodated a change in system to ensure employer tax rates and reimbursable eligibility for non-instructional academic employees. wouldn’t rise due to pandemic-induced claims.

State of Illinois COVID-19 Update Nov. 23, 2020 SUPPORTING CLAIMANTS IN RECORD NUMBERS IDES has paid out over 16x more benefits compared to 2019, assisting 1.3 million people statewide.

Benefits Paid (March through October)

Program 2019 2020

Regular UI $1.056 billion $5.422 billion

FPUC $0 $8.914 billion

PEUC $0 $514 million

PUA $0 $1.574 billion

EB (CARES) $0 $109 million

LWA $0 $1.127 billion

Total Benefits Paid $1.056 billion $17.659 billion

State of Illinois COVID-19 Update Nov. 23, 2020 CONTINUED CLAIMS SHOW PERSISTENCE OF DOWNTURN Continued claims counts hover around 700,000 to 800,000 since August

Weekly Continued Claims: All Programs August 1, 2020 to November 14, 2020 900,000 • Fewer Illinoisans are 800,000 claiming regular UI benefits. 700,000 However, they are not 600,000 reconnecting with the labor 500,000 force. 400,000 • Instead, claimants are 300,000 transitioning to extended 200,000 benefits (e.g. PEUC and EB). 100,000 0 8/1 8/16 8/31 9/15 9/30 10/15 10/30 11/14 Regular UI PUA PEUC EB State of Illinois COVID-19 Update Nov. 23, 2020 Pandemic unemployment relief programs expire December 26. Congressional action needed to replace these benefits for hundreds of thousands of Illinoisans and 12 million Americans.

State of Illinois COVID-19 Update Nov. 23, 2020 IDES HEADCOUNT CUT IN HALF OVER THE DECADE 226-person headcount increase to 1,377 total authorized for FY21

IDES Headcount 2,500 Actual Headcount FY10: 1,961

2,000

Authorized Headcount FY21: 1,377 1,500

1,000

500

Recession

0

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Authorized Headcount Actual Headcount State of Illinois COVID-19 Update Nov. 23, 2020 NEW UNEMPLOYMENT CLAIMS SHATTER RECORDS No comparable time frame has produced even half as many claims

Initial Regular UI Claims March to October 2,500,000

2,000,000

1,500,000

1,000,000

500,000

- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

State of Illinois COVID-19 Update Nov. 23, 2020 INCREASING ACCESS TO IDES CALL CENTER

Average Daily Agents •IDES has added hundreds of 500 permanent and contractual agents 450 400 •Call center hours extended to 350 reach more claimants 300 250 •Callers can enter callback queues 200 24/7 150 100 50 0 Jul-19 Jul-20 Jan-19 Jun-19 Apr-19 Oct-19 Jun-20 Feb-19 Jan-20 Sep-19 Apr-20 Mar-19 Nov-19 Dec-19 Aug-19 Feb-20 May-19 Mar-20 Aug-20 May-20

State of Illinois COVID-19 Update Nov. 23, 2020 IDES CALL CENTER: PRIOR TO CALLBACK SYSTEM Over 1 million calls per week; claimants forced to call dozens of times per day

Total Calls Per Week Prior to Callback System 2,000,000

Peak week (ending May 23): 1,823,093 calls received 1,600,000

1,200,000

800,000

400,000

- 3/7 4/4 5/2 5/9 6/6 4/11 3/14 3/21 4/18 5/16 6/13 4/25 3/28 5/23 5/30 6/20

State of Illinois COVID-19 Update Nov. 23, 2020 CALLBACK SYSTEM PRIORITIZES EFFICIENCY AND FAIRNESS Over 1.1 million callbacks completed to date

Efficient Fair • Outstanding calls cut in half since August • First-in, first-out system • Answering 2.5x more calls than before • All claimants guaranteed to speak with callback system an agent • Claimants queue based on specific issue • Claimants no longer must call dozens of to connect with an expert times in a day to “win the lottery” • Callback times down to 7-10 days

State of Illinois COVID-19 Update Nov. 23, 2020 CALLBACK WAIT TIMES DECLINING CONSISTENTLY Outstanding Calls: Certification •IDES is continuously reallocating Queue Only with callback system call center agents to address our 100,000 20+ queues 90,000 80,000 •For example, claimants seeking 70,000 help with certification have seen 60,000 wait times drop sharply 50,000 •The vast majority of claimants will 40,000 30,000 receive a callback within 7-10 days 20,000 10,000 - 7/9 7/29 8/18 9/7 9/27 10/17 11/6

State of Illinois COVID-19 Update Nov. 23, 2020 FRAUD IMPACTING UNEMPLOYMENT AGENCIES NATIONWIDE Taking steps to protect against bad actors

•IDES is generally informed about fraud in two ways: 1. Victims of identity theft receive a UI Finding and/or KeyBank debit card in the mail. The victim contacts IDES to shut down the fraudulent claim 2. Employers protest a claim from a current or former employee •Claimants, victims, and employers can help fight fraud •IDES is working with state & federal partners to investigate and pursue fraudsters

State of Illinois COVID-19 Update Nov. 23, 2020 COVID-19 Update State of Illinois

Monday, November 23, 2020