Unemployment claims jump back over 1 million

States have been processing roughly 1 million new unemployment applications each week since mid-March.

The number of workers applying for unemployment benefits jumped to 1.1 million last week, the Labor Department reported Thursday, the first time in two weeks that new claims have gone up.

States have been processing roughly 1 million new unemployment applications each week since mid-March, when the coronavirus pandemic began sweeping through the country, forcing the shutdown of many businesses.

An additional 542,797 workers filed for jobless aid under the new pandemic unemployment assistance program, created for those not traditionally eligible for unemployment benefits like the self-employed and gig workers.

How bad is it?: New jobless applications filed in state programs are still far above the previous record of 695,000 in 1982 — and have topped that record for 22 weeks in a row.

That figure also doesn’t include the thousands of workers who are applying for jobless benefits under the federal pandemic assistance program.

In total, there are more than 28 million people receiving jobless benefits, the department said.

New Jersey saw the largest jump in new claims last week, reporting an estimated 24,646 new applications, a more than 10,000 increase from the previous week. New York also received 62,397 new claims last week, nearly 10,000 more than it saw the week before.

Where’s Congress?: Lawmakers left Washington after Democratic leaders and the White House were unable to agree on another round of pandemic aid.

The House will gavel in for a rare weekend session on Saturday to vote on a bill to shore up the U.S. Postal Service, but Democratic leaders have been facing pressure within the party to also vote on aid programs like beefed-up unemployment insurance. Democrats are considering a proposal that would automatically extend jobless benefits to millions of Americans if the economic and health crises continue.

Unemployed workers were receiving an extra $600-a-week boost from the federal government under a program created by the CARES Act, the massive economic relief bill passed in March. But those payments expired on July 31, cutting most unemployed workers’ checks by at least 50 percent.

Republicans meanwhile, are planning to introduce a “skinny” coronavirus relief bill that is expected to include $300 in boosted weekly federal unemployment benefits until Dec. 27.

What are states doing?: Eleven states so far have applied to tap into a $400 extra unemployment payment program initiated following President Donald Trump’s move to expand jobless aid via executive action.

Arizona, Colorado, Idaho, Iowa, Louisiana, Maryland, Missouri, Montana, New Mexico, Oklahoma and Utah have been approved for extra federal assistance, according to the Federal Emergency Management Agency.

The program was launched after Trump on Aug. 8 issued an executive memorandum instructing FEMA to use disaster relief funding to send the extra $400 a week to unemployed workers.

But laid-off workers in those states will probably not see the extra cash on their unemployment checks for several weeks. The president’s memo required states to create and implement a new system and fund one-fourth of the additional $400 benefit.

Because states have to adjust their unemployment insurance system to access the funds and “accommodate program requirements,” the DOL estimates it will take each state three weeks to set up the program.

This blog originally appeared at Politico on August 20, 2020. Reprinted with permission.

About the Author: Rebecca Rainey is an employment and immigration reporter with POLITICO Pro and the author of the Morning Shift newsletter.

 

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