Judge rules Indiana must continue extra federal unemployment benefits
Gov. Eric Holcomb and the state’s Workforce Development office “will discuss an immediate appeal of the judge’s order with the Attorney General,” the governor’s office said.
Gov. Eric Holcomb and the state’s Workforce Development office “will discuss an immediate appeal of the judge’s order with the Attorney General,” the governor’s office said.
While those supplemental benefits might have contributed to a reluctance to return to work for some, the unemployment rate in Indiana has declined dramatically since the height of the pandemic.
The latest numbers show Hoosiers filed 4,641 initial unemployment claims during the week ended June 12, a drop of 465 from the previous week.
A lawsuit filed on behalf of five Indiana residents and Concerned Clergy of Indianapolis challenges Gov. Eric Holcomb’s decision to end extended unemployment benefits provided through the federal CARES Act.
The latest numbers show Hoosiers filed 7,149 initial unemployment claims during the week ended May 15, a drop of 637 from the previous week.
The move will also end benefits for people who did not qualify for unemployment benefits before the pandemic, including gig-economy workers, independent contractors and self-employed workers.
Indiana is not among the states cutting workers off from federal benefits. But on Thursday, Sen. Mike Braun, R-Ind., encouraged states to “pull the plug” on the benefits.
The number of weekly jobless claims—a rough measure of the pace of layoffs—has fallen significantly from a peak of 900,000 in January.
Indiana is joining several other states creating more requirements for people to stay on unemployment, with many businesses blaming the ease of obtaining the weekly jobless benefits with making it more difficult to fill job openings.
Many employers say they are unable to fill positions because of ongoing fears of catching the coronavirus, child-care responsibilities and generous unemployment benefits.
States waived their work requirements for unemployment benefits at the start of the pandemic, but about 30 of them have reimposed or are planning to reimpose them. Gov. Eric Holcomb announced Friday that Indiana would do the same.
To nearly everyone’s surprise, employers in April added a comparatively paltry 266,000 jobs, down drastically from a gain of 770,000 in March, which itself was revised down from an initially much higher figure of 916,000.
An unexpected slowdown in hiring nationwide has prompted some Republican governors to start slashing jobless benefits. On Friday, Indiana Gov. Eric Holcomb said he would consider whether the state should continue to participate in federal pandemic unemployment programs.
Unemployed Hoosiers are currently receiving $300 per week from the federal government in addition to state benefits. The federal program also expanded who is eligible for unemployment.
The figures suggest that as the economy rapidly reopens, businesses are already providing higher pay and benefits to pull workers back into the job market.
Weekly jobless claims are down sharply from a peak of 900,000 in early January, the Labor Department said Thursday.
The state’s unemployment rate has been doggedly retracing its steps over the last year from its latest spike, falling from 16.9% in April 2020 to 3.9% last month.
The most optimistic economists predict the nation could produce as many as 10 million more jobs this year and restore the labor market to its pre-pandemic level. Yet, even in normal times, it would be hard to regain all those jobs so quickly. And these aren’t normal times.
The state’s unemployment rate has been doggedly retracing its steps over the last year from its latest spike, falling from 16.9% in April to 4% in February.
Despite the weekly increase, the four-week average of claims, which smooths out weekly variations, dropped to 746,000, the lowest since late November.