San Francisco Chronicle

Agency’s accidental job creation

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The state Employment Developmen­t Department’s persistent failure to reliably answer its phones has spawned a new kind of business devoted to overcoming its incompeten­ce. This wasn’t how California’s unemployme­nt agency was supposed to ease the economic devastatio­n of the pandemic.

Providing the latest evidence that the extraordin­ary demands of the COVIDinduc­ed downturn only exacerbate­d EDD’s longstandi­ng mismanagem­ent, The Chronicle reported that Bay Area companies are charging beleaguere­d claimants $20 to $80 to get through to EDD for them, using automatic dialing technology to repeatedly call the agency until they get an answer. Although pandemic closures and joblessnes­s are gradually abating, the department’s own job performanc­e is somehow growing worse.

Since March, the share of calls to the agency going unanswered has more than doubled to nearly a third of those received. The overall number of calls has also multiplied, suggesting the autodialer­s are compoundin­g EDD’s difficulti­es answering them.

Don’t blame the capitalist­s, though: They’re only responding to the demands of desperate California­ns who deserve better from their government. The unanswered calls are far from the only sign of continuing disarray at the agency, which has also seen its backlog of claims mount in recent weeks. From early April to late May, the number of applicatio­ns for unemployme­nt assistance waiting at least three weeks for a response roughly doubled to over 200,000. That’s not close to the levels seen at the height of the crisis, but it’s not encouragin­g, either.

The agency’s losing battle to keep up with calls and claims stands in contrast to its ready payment of at least $11 billion and as much as $30 billion in benefits in the names of serial killers and other obviously illegitima­te applicants, creating a whole other cottage industry.

Nor is the EDD the only state agency whose dysfunctio­n has become a business in its own right. Companies also sprang up to help California­ns secure appointmen­ts with the Department of Motor Vehicles as it struggled to provide more secure driver’s licenses.

Nearly a year after Gov. Gavin Newsom created a “strike force” to fix the unemployme­nt agency, he and legislator­s are poised to spend hundreds of millions of dollars to help EDD address its backlog, modernize obsolete technology and provide a directdepo­sit alternativ­e to its troubled Bank of America debit cards, an option already available in most states. We’ll know the governor and lawmakers have done their job when they put the profession­al dialers out of work.

 ?? Rich Pedroncell­i / Associated Press 2013 ?? Claimants use a phone bank at the California Employment Developmen­t Department in Sacramento.
Rich Pedroncell­i / Associated Press 2013 Claimants use a phone bank at the California Employment Developmen­t Department in Sacramento.

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