Q&A: Indiana DWD officials discuss expired pandemic jobless benefits
State Department of Workforce Development officials explain what the end of federal pandemic unemployment benefits means for Hoosiers.
State Department of Workforce Development officials explain what the end of federal pandemic unemployment benefits means for Hoosiers.
Even though hiring was relatively tepid in August, the unemployment rate dropped to 5.2%, from 5.4% in July.
In a desperation for hired hands, companies have loosened hiring restrictions on everything from age to level of experience. The changing standards may have helped boost hiring this summer, even as many companies complained they couldn’t find all the workers they need.
Jobless claims dropped by 14,000, the Labor Department reported Thursday. The weekly count has mostly fallen steadily since topping 900,000 in early January.
The four-week average of claims, which smooths out week-to-week volatility, fell to its lowest level since mid-March 2020, when the coronavirus was beginning to slam the United States.
An estimated 137,857 Hoosiers were unemployed and seeking jobs in July, the state reported Friday. That’s was down from 138,192 in June.
The dwindling number of first-time jobless claims has coincided with the widespread administering of vaccines, which has led businesses to reopen or expand their hours and drawn consumers back to shops, restaurants, airports and entertainment venues.
The payments will continue because the state must give recipients a 30-day notice that they will stop, which extends past the scheduled Sept. 6 end of the federal pandemic unemployment programs, the Indiana Department of Workforce Development said.
A decision issued Tuesday by the Indiana Court of Appeals is allowing the state to again stop the federal enhanced unemployment benefits that Gov. Eric Holcomb had tried to end in June because he thought the extra money encouraged workers to stay out of the job market.
Indiana has more than 17,000 pending appeals of unemployment-claim denials. Only California, Texas and Virginia—states with much larger populations—have more.
The unemployment rate dropped to 5.4% in another sign that the U.S. economy continues to bounce back with surprising vigor from last year’s coronavirus shutdown.
Unemployment claims remain high by historic levels: Before the pandemic slammed the United States in March 2020, they were coming in at around 220,000 a week.
Economists characterized last week’s increase as most likely a blip caused by some one-time factors and partly a result of the inevitable bumpiness in the week-to-week data.
State officials argued in their court filings Monday that a Marion County judge “abused” his discretion last month by ordering Indiana to resume participation in the benefit programs.
The Indiana Department of Workforce Development said those who have remained unemployed since federal payments were cut off last month will begin receiving back payments.
Indiana’s unemployment rate has been hovering at or near 4% for the last sixth months. It was 3.3% in March 2020, just before the pandemic triggered wide-scale layoffs and job losses.
The Indiana Court of Appeals ruled Monday that the state temporarily continue payment of federal unemployment benefits, affirming an earlier court order that Indiana must restart the extra $300 weekly payments to unemployed workers.
Attorneys for the state maintain Indiana can’t continue paying out the benefits because the state has already ended its agreement with the federal government to administer the federal programs.
The news is likely to be seen as a good sign for the economy more than one year into the pandemic, after numerous wrinkles have emerged to complicate a labor recovery many hoped would be faster at this level of vaccinations.
There are signs that people are re-evaluating their work and personal lives and aren’t necessarily interested in returning to their old jobs, particularly those that offer modest wages.