When the economic disruption caused by COVID-19 and subsequent shutdowns began in early 2020, Colorado’s unemployment system was overwhelmed by the influx of applications.
The Colorado Department of Labor and Employment saw a massive increase in initial claims, from just under 100,000 in 2019 to nearly 800,000 in 2020 and close to 1 million in 2021. In comparison, South Dakota experienced a 500% increase in initial claims from 2019 to 2020, while California saw a 450% rise.
The surge in claims in Colorado resulted in significant delays in processing benefits, with claimants struggling to reach a live person for assistance.
Despite a decrease in the number of claims as the economy recovered, complaints about the bureaucratic hurdles faced by unemployed individuals in Colorado persist.
Delays in processing claims have been attributed to high claim volumes and challenges with the labor department’s new computer system, leading to difficulties with ID verification.
Several individuals have raised concerns about the system, with some resorting to legal action over missing benefits and integrity holds.
Misha McGinley, a resident of Broomfield, shared her experience of facing a three-month delay in benefits and the frustration of trying to reach a live person at the department.
Despite the drop in claim volumes from the peak of the pandemic, the CDLE continues to see higher-than-pre-pandemic claim loads.
In 2024, the department paid over $850 million in benefits and answered approximately 206,160 calls.
Efforts are being made to improve the system, including hiring more call center agents, introducing a Spanish version of MyUI+, and enhancing automation.
Unemployment insurance claims are processed through a point system that considers various eligibility factors before benefits are awarded.
While the goal is to modernize the system and reduce the need for human staff, challenges remain, including diminishing federal funding and a rise in claims from federal workers laid off due to government restructuring.
Individuals like Jason Miller have faced delays and challenges in receiving benefits, highlighting the need for further improvements in the system.
The governor’s office is available to assist Coloradans with outstanding unemployment claims by connecting them with the necessary resources.
Overall, the Colorado unemployment system continues to face obstacles, but efforts are being made to address issues and improve the process for claimants.
