Michigan's unemployed rate hit a record 10.6% in December, causing a bottleneck in the state's system to handle new claims that prompted Governor Jennifer Granholm to announce that the state will increase its workforce and computer system to handle the increased demand for services.

"Working men and women who have felt the impact of this recession through job loss shouldn't also have to deal with long lines and delays in receiving their unemployment benefits," Governor Granholm said. The governor said agencies expanding their services to work with the record number of unemployed people in Michigan include the Unemployment Insurance Agency, Department of Energy, Labor and Economic Growth, Office of the State Employer, Department of Management and Budget, and the Department of Information Technology.

The Michigan Chamber of Commerce said that the legislature should investigate why the state agencies were not able to handle the increased number of new unemployment claims, and contended the difficulties were due to "mismanagement and misplaced priorities" at the Department of Energy, Labor and Economic Growth.

Frustrated unemployed workers have been calling legislative offices hoping that their elected officials can help break the logjam in getting their phone calls answered and initiate their applications to receive benefits.

With many of the unemployed not having access to computer programs to begin benefits, the phone system has been unable to keep up with the surge in applications.

As a result, the Unemployment Insurance Agency (UIA) will hire another 276 employees to staff Remote Initial Claims Centers and Problem Resolution Offices. The state also will open an additional call center in Lansing that will add 200 telephone lines to assist residents.

Michigan's Unemployment Insurance Agency is updating its computer servers and the interactive call-in system to handle an increase in traffic related to increased layoffs, and the system will soon be fully accessible, State Representative Gary McDowell reported Tuesday, January 20. The call-in network is known as Michigan's Automated Response Interactive Network, or MARVIN.

"The fact is that the UIA has seen a huge increase in claims filing," Mr. McDowell said. "I know people are frustrated with the disconnections and long wait times, but the UIA is making a lot of progress getting the bugs out of the system. Residents with Internet access can also file their claims online, which will not only ease the burden on the phone servers, but lessen the time it takes to file a claim for everyone."

To file a claim online, visit the Web site at www.michigan.gov/uia.

The Department of Energy, Labor and Economic Growth reported last week that Michigan's unemployment rate was 10.6% in December, with 519,000 workers out of a job. The numbers likely will get worse. The governor said that she has seen notices of 28 large layoffs so far in January. State leaders said at the Revenue Estimating Conference early in January that they expect the unemployment rate could top 11% this year, while an economist with the Mackinac Center said he anticipated unemployment could top 12% through 2009.

Unemployment Insurance Agency

Now Offers MARVIN Online

The agency has expanded its online services to help relieve the flood of telephone calls to its automated MARVIN system.

"Unemployed workers can now go to the UIA Web site to complete their biweekly certification through MARVIN, instead of calling the toll-free MARVIN telephone number," Director Stephen Geskey announced Wednesday, January 21.

"Online MARVIN should reduce the number of calls to our telephone based MARVIN system, while giving unemployed workers another option for completing their important eligibility certification," Mr. Geskey said.

Workers claiming unemployment benefits are required to certify with the system every other week to receive their biweekly unemployment benefit payment. Through the system, workers certify that they are still unemployed and meet the program's eligibility requirements. They also report any earnings they may have received.

The online- and telephone-based systems have many of the same features. The two systems use the same day and time reporting schedule, ask the same questions, require the same identification, and process benefit payments on the same day the certification is made.

To use the online MARVIN system, individuals must create a free online account by visiting the UIA Web site at www.michigan.gov/uia and clicking on the link "UIA online services to unemployed workers." Users will be taken to a log-in page, where they can register and start the process of creating their own online account with the agency.

Users will immediately receive a temporary password - good for only 10 days - that will allow them to immediately certify online. A second password will be mailed to the individual that will give them full access to all of the Web account features.

Putting the service online is part of the effort to help unemployed workers reach the agency.