California’s Economy Will Be Stronger When Immigrant Workers Are Included in UI
Our Unemployment Insurance (UI) system was not created with our current economy or the urgent climate crisis in mind. Climate-related disasters and technological change are increasing in frequency and severity, shifting who needs access to UI and how frequently. We must invest in expanding unemployment benefits to workers who are currently excluded.
During the COVID-19 pandemic, we showed what’s possible when we expand UI to more workers. Overall, UI benefits kept 4.7 million people, including 1.4 million children, out of poverty in 2020. For Black and Latino workers and their families, expanded UI benefits helped an estimated 1.1 million Black workers and their families and 1.2 million Latino workers and their families avoid poverty. These benefits are the most effective economic stabilizers during times of crisis, producing $1.61 in economic stimulus for every dollar spent for UI. They are key to keeping families afloat, workers in their communities, and small businesses running during temporary job loss, all of which help secure a more equitable economic recovery.
Here in California, we’re facing new crises. Recent storms have flooded vast areas of farmland across counties, putting entire communities of farmworkers out of work. Towns like Planada and Pajaro, which had to be evacuated, have significant undocumented worker populations who were left without homes or jobs and are excluded from UI solely due to their immigration status. A recent study from UC Merced Community and Labor Center found that 83% of households in Planada lost work, sustained property damage, or both. Among the Planada households that lost work, 57% did not have a single worker in the household eligible for UI.
Don’t be fooled, however. These workers are still paying for benefits they can’t access. Taxes on the labor of undocumented workers in California contribute over $300 million each year to the UI system. Across the country, $13 billion was paid in UI taxes on behalf of undocumented workers. These workers help to subsidize the UI system, but don’t get a cent of the benefits from it.
During the pandemic, many states stepped up to provide some form of cash relief to excluded immigrant workers, but the relief was relatively small, one-time, and limited. In the recent storms, many have scrambled to provide short-term, philanthropic relief. However, states like California must invest in support that is sustainable and equitable for the millions of workers who are excluded from what all other workers, industries, and local economies rely on to get by: unemployment benefits.
If we want real disaster preparedness, we must prepare to care for all workers. If we want real resilience, we must invest now in systems that can be ready to support workers and their families when the next crisis hits. It’s the right thing to do for an equitable and prosperous economy that fosters equal protection for all of us.
Sasha Feldstein (she/her)
Sasha is an Economic Justice Policy Director at California Immigrant Policy Center.
