State and federal authorities have expanded the eligibility for unemployment benefits significantly, meaning if you’re out of work and didn’t qualify under the old rules, you likely will now.
In Indiana, initial claims filed for the week ended March 21 rose to a whopping 61,635, up from 2,596 claims the previous week.
The numbers are skyrocketing as businesses close as part of efforts to stop the spread of the coronavirus.
The governor also signed legislation that will eventually put more money into the state’s unemployment trust fund, a move that comes as the coronavirus outbreak has led to a jump in unemployment claims.
Many of those workers already live paycheck to paycheck—and a disruption in the flow of those checks could set off long-term financial problems. Foreclosures, evictions, bankruptcies, repossessions and more.
The growing number of people filing for unemployment checks raises fresh questions about whether states have stockpiled enough money since the last recession to tide over idled workers until the crisis ends.
In a snapshot of the state’s workforce from January, private employment grew in the transportation, hospitality, education and health sectors while declining in manufacturing.
The contribution rates used to determine how much Indiana businesses pay into the state’s unemployment trust fund will be frozen for another five years under legislation passed by both the Indiana House and Senate.
A bright spot was the U-6, or underemployment rate, which fell to 6.7 percent, according to Bloomberg News. This level was lower than at any point since at least 1994.
In Friday’s hiring data, besides reporting the healthy November gain, the government revised up its estimate of job growth for September and October by a combined 41,000.
The state saw job losses last month in the manufacturing sector, but the overall unemployment rate is still lower than in Indiana’s four neighboring states and across the U.S. as a whole.
U.S. employers added a solid 128,000 jobs in October, a figure that was held down by a now-settled strike against General Motors that caused several thousand workers to be temporarily counted as unemployed.
All told, the September jobs report is likely to keep the Federal Reserve on track to cut interest rates later this month for the third time this year to try to help sustain the expansion.
Private sector employment in Indiana slipped by 2,100 in August over the previous month but is up more than 23,000 over the year, the state said.
U.S. employers slowed their hiring in July, but added a still-healthy number of jobs. Average hourly earnings increased 3.2% from a year ago, up from annual gains of 3% in June.
Private sector employment in Indiana grew by 6,800 in June over the previous month and is up more than 37,000 over the year, the state said.
The proposed 17% increase would bring the premiums paid by companies to a level recommended by the federal government, which is meant to prepare the unemployment fund for the next recession.
The tepid job growth, along with rising pressures on the economy, makes it more likely that the Federal Reserve will cut rates in the coming months.
Private sector employment in Indiana fell by 3,600 in April over the previous month, but is up more than 36,700 over the last year, the state said.
Friday's jobs report from the Labor Department showed that solid economic growth is still encouraging strong hiring nearly a decade into the economy's recovery from the Great Recession.
