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’No words for this’: 10 million workers file jobless claims in just two weeks

Rebecca Rainey
Nolan D. McCaskill

Unemployment claims soared to a record-smashing 6.6million last week, the Labor Department reported, more than double the previous week, signaling more economic pain from the coronavirus pandemic.

The rush to claim unemployment benefits occurred as the number of people testing positive for the coronavirus rose above 200,000 and government measures to contain the epidemic shut down increasing swaths of the U.S. economy, with residents in 37 states now ordered to stay at home.

The total job losses in just two weeks — almost 10 million Americans — amounts to a staggering, sudden blow to American workers never seen before in the U.S. economy. The labor market in the coming weeks could blow past the 15 million jobs lost at the peak of the 18-month Great Recession from 2007 to 2009.

President Donald Trump, who built his record for the past three years in office around economic growth and job growth, has now seen gains from much of the past decade evaporate in a matter of weeks. An official U.S. jobless rate that sat at 3.5% in February is poised to top 10% in April alone, eclipsing the peak of the last recession.

“In one line: No words for this,” Pantheon Macroeconomics Chief Economist Ian Shepherdson wrote in reaction to the numbers.

“What we are going through now dwarfs anything we’ve ever seen, including the worst weeks of the great recession,” tweeted Heidi Shierholz, chief economist at the left-leaning Economic Policy Institute. “I have spent the last twenty years studying the labor market and have never seen anything like it.”

The new figure, which represents unemployment claims filed the week that ended March 28, marks the largest number of weekly claims ever recorded since the government began collecting such data in 1967. The second-highest number of claims were the 3.3 million filed the week before, and the third-highest about 700,000 claims filed one week in 1982.

The new unemployment claims figure was seasonally adjusted, but the raw numerical increase was still a record-breaking 5.8 million claims.

In a prepared statement, Labor Secretary Eugene Scalia said, “The administration continues to act quickly to address this impact on American workers.” He then pointed to the recent coronavirus relief package approved by Congress and a final rule issued by the Department of Labor Wednesday enacting temporary paid leave requirements for businesses with fewer than 500 employees. Covered employers must give workers who are quarantined or experiencing coronavirus symptoms two weeks paid sick leave, and an additional ten weeks leave to workers who are caring for children stuck at home.

Reports from state unemployment offices, which are still struggling to meet the high volume of requests for unemployment benefits, continue to suggest DOL’s weekly claims figure significantly understates the real number of Americans seeking help.

“We’re hoping today’s reading will be the peak, but we can’t be sure,” Shepherdson of Pantheon wrote in an email. “In any event, total layoffs between the March and April payroll surveys look destined to reach perhaps 16-to-20 [million], consistent with the unemployment rate leaping to 13-to-16 [percent].”

Additionally, the number doesn’t capture self-employed workers, who are not eligible for state unemployment benefits. But under a new temporary program that was signed into law one day before the reporting period ended, gig workers will be eligible to apply to state unemployment offices for up to 39 weeks unemployment benefits that will be funded entirely by the federal government. States are awaiting guidance from DOL on how to put this new program into effect.

Also left out of the count are people who left the workforce voluntarily for any reason — including to care for a sick family member, a child home from school, or because they are sick, themselves, from Covid-19, the illness caused by the unique coronavirus.

The Congressional Budget Office released an updated economic forecast on Thursday that suggests the effects of mass joblessness and business closures will sting for some time, with an unemployment rate as high as 9 percent by the end of 2021.

In the nearterm, the CBO projected that the jobless rate will blow past 10 percent in the second quarter of this year, with GDP expected to fall by 7 percent over the next three months.

Director Phillip Swagel cautioned that CBO’s estimates are “very preliminary“ and “based on information about the economy that was available through this morning,” warning the numbers are subject to change and even worsen. The projections assume that social distancing continues across the country for an average of three months and that later outbreaks of the virus are possible, he said.

The increase in claims remained concentrated in the services industries, according to DOL, particularly accommodation and food services. States also reported increases in claims from workers in thehealth care, manufacturing, retail and construction industries.

The greatest number of new unemployment claims were in California, which processed an estimated 878,727 claims last week. That figure is up from 186,333 in the previous week and more than 21 times the typical volume the department handled before the pandemic.

California’s employment agency, which is handling the onslaught of claims, has said it has not experienced delays, but Twitter is awash with complaints from workers about overloaded phone lines, difficulties filing online and confusion about how to apply for federal CARES Act relief as independent contractors.

To speed up the approval process, the department has added hundreds of employees to process claims. It has also relaxed its initial verification requirements at the direction of the state’s labor secretary, allowing the checks to go out more quickly.

After California, Pennsylvania was next with 405,880 new claims.

New York, which leads the country in confirmed coronavirus cases, reported 366,403 new claims last week. That figure, however, is likely a massive undercount. The official tally is almost certainly missing vast numbers of New Yorkers who have been frantically attempting to file claims with the state’s outdated website and telephone lines to no avail.

In addition to the anecdotal evidence of dropped calls and online applications interrupted by crashes, the DOL report sheds some more light onto just how few residents are getting through: New York state had to revise its jobless claim numbers from earlier in the month upward by nearly 85 percent.

“Today’s jobless report shows the grim reality of the coronavirus’ crippling effect on our economy and working families,” Senate Minority Leader Chuck Schumer (D-N.Y.) said in a statement. “The Department of Labor must move heaven and earth to — as quickly as possible — get the expanded unemployment benefits Congress passed last week into the pockets of workers who have lost their paychecks through no fault of their own. America’s workers and families cannot afford a delay.”

New Jersey, which has recorded 22,255 positive cases of Covid-19 since early last month, reported 205,515 unemployment claims.

Illinois has been taking steps to update and streamline unemployment claims. The state received more than 114,000 claims last week.

Over the past few weeks, the Illinois Department of Employment Security website has been moved to a new hardware infrastructure to handle the increased demand. Web, storage and processing capacity has also been improved to meet the increased needs, according to the governor’s office. The state says call center capacity has been increased and daily call center hours have been extended.

Florida will start accepting paper applications for unemployment benefits as a result of ongoing crashes and failures with its online system, Ken Lawson, the head of the state agency that processes claims, said Thursday.

Florida’s online system, CONNECT, went offline for hours Wednesday as the state dealt with an unprecedented surge of jobless claims. Florida had more than 222,000 claims last week.

Lawson, director of Florida’s Department of Economic Opportunity, announced the move at a town hall meeting with two Democratic legislators. He also apologized for the ongoing problems. The beginning of the town hall was disrupted by hackers and others who cursed at Lawson and the legislators.

The “next week or two” is going to be difficult, Lawson said.

Katy Murphy, Caitlin Emma, Shia Kapos, Joe Anuta,Gary Fineout and Katherine Landergan contributed to this report.

This article was originally published at Politico on April 2, 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.

Prior to joining POLITICO in August 2018, Rainey covered the Occupational Safety and Health administration and regulatory reform on Capitol Hill. Her work has been published by The Washington Post and the Associated Press, among other outlets.

Rainey holds a bachelor’s degree from the Philip Merrill College of Journalism at the University of Maryland.

She was born and raised on the eastern shore of Maryland and grew up 30 minutes from the beach. She loves to camp, hike and be by the water whenever she can.

About the Author: Nolan D. McCaskill is a national political reporter covering the 2020 presidential race.

He previously covered Congress and authored the Huddle newsletter at POLITICO, where he started as an inaugural member of POLITICO’s Journalism Institute in 2014 before accepting a yearlong fellowship through 2015, later becoming a breaking news reporter and briefly covering the White House.

Nolan is a December 2014 graduate of Florida A&M University in Tallahassee, Florida. He was editor-in-chief of his college newspaper, The Famuan, and a former producer for his university’s live television newscasts.

Nolan is PJI’s inaugural Emerging Communicator and a 2017-18 National Press Foundation Paul Miller Washington Reporting Fellow.

Millions of People Can’t Pay Rent Tomorrow. Here’s How Some Are Organizing.

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As April 1 looms and the first rent payment since the start of the coronavirus pandemic becomes due, countless people wonder how they’ll be able to afford to pay. Since the start of the coronavirus crisis, millions have had their hours cut, been furloughed, or laid off. A whopping 3.3 million have applied for unemployment benefits, and some say the unemployment rate could reach 30%. To put that in perspective, the unemployment rate during the Great Depression was 25%.

The cost of rent has skyrocketed the past few decades, while the federal minimum wage hasn’t been raised since the $7.25 wage took effect in 2009. And as worker productivity has soared to new heights, studies show that wages have stagnated across the board. This has been a problem for working people even in times of normalcy—in expensive urban cores like New York, Los Angeles and San Francisco, many bounce from friends’ couches to shelters and even sometimes to their own cars. But in the wake of the coronavirus pandemic, the housing crisis is understandably exploding: Those who were able to just barely pay their rent before are now scrambling to keep the landlord at bay.

Housing activists have been calling for a reprieve on evictions during the coronavirus pandemic, and numerous cities states have reacted quickly, placing a temporary moratorium on evictions or a pause on housing court. But none yet have frozen rent payments, and tomorrow is April 1—and the rent is due.

While the fear and panic that people may feel when they’re unable to pay their rent or mortgage can seem individual and unique, it’s actually shared between the millions of others who are in the same boat. Right to the City Alliance, a national network of more than 80 racial, economic and environmental justice organizations, is hoping to turn that collective anxiety into collective action. The alliance is calling for an immediate cancellation of rent and mortgage payments through the duration of the public health and economic crisis for all renters, homeowners and small businesses and a three-month recovery period. These demands expand beyond a rent and mortgage freeze and include calling for the immediate release of those being held in pre-trial and immigrant detention, an indefinite suspension of utility shutoffs, and a guarantee of unemployment insurance, sick time, paid leave, health care, and a living wage for all workers.

For many, rent cancellation is urgently needed to ward off personal financial catastrophe. Coya Crespin of Community Alliance of Tenants of Portland, Oregon, said in a statement, “As a pregnant single parent without any savings, and now schools being shut down, it has been difficult keeping my kids fed. Many of the members of the housing organization I’m a member of have been contacting me afraid of not being able to pay rent in April. The stimulus package check that politicians are lifting up as a solution doesn’t even cover one month’s rent in most cases. People are beyond stressed. I’m beyond stressed.”

Many of these demands have been voiced for years, but have been popularized by the Bernie Sanders campaign and the #HomesGuarantee platform, which would implement a national rent control standard and a just-cause requirement for evictions.Even presidential candidate Bernie Sanders agrees that “along with pausing mortgage payments, evictions, and utility shutoffs, we must place a moratorium on rent payments” during the coronavirus pandemic. And because President Trump’s recovery proposal is a paltry $1,200—not even enough to cover rent in many cities—tenants (and even some homeowners) are being forced to make a public declaration that, without more aid, they can’t (and won’t) pay. Housing activists are using this moment of true desperation to demand the support they deserve—but there are some disagreements on the way forward.

While Right to the City Alliance is pushing for an immediate suspension of rent and mortgage payments throughout the coronavirus crisis, and for a three-month period after it ends, others are calling for rent strikes if the government doesn’t act. David Cardenas, National Field Organizer at the Right to the City Alliance, said his network is “supporting a diversity of tactics in the alliance.” Rent Strike 2020, a new organizing campaign working in partnership with Socialist Alternative and the Rose Caucus, a group of socialists running for both state and federal House and Senate seats, is demanding “every Governor, in every state: freeze rent, mortgage, and utility bill collection for two months, or face a rent strike.” Tenants in New York are waiting for Governor Cuomo to provide some relief, but are prepared to take matters into their own hands and go on a rent strike if he does not act.

Davin Cardenas, National Field Organizer at the Right to the City Alliance said, “We see rent strikes as a collective action that comes from deep organizing on the local level and some of our member organizations are going to use that tactic. We need people to come together, organize, and join the movement for long-term and transformative struggle so we can fundamentally change the housing system and win homes for all.”

The Philadelphia Tenants Union, in its COVID-19 Tenant Organizing Guide, urges people to be strategic and think long and hard about what their demands really are: “A rent strike is a tool, not a demand,” the guide states. It specifies, “In a situation where the demand is ‘stop collecting rent from me,’ it’s questionable how effective a rent strike would be. To put it another way, how does withholding rent pressure a landlord to suspend rent?”

There are a number of tactics being put forward in this moment, but one thing is for certain: In the face of the coronavirus pandemic, the housing movement is empowering tenants to take big and bold action. No one can predict what will happen on or immediately after April 1, when millions potentially don’t pay their rent, but Cardenas said, “It’s not likely that we’ll see relief, and even the relief that comes in before May 1 won’t be sufficient for what our families need across the country. There is not going to be a return to normalcy or a return to business as usual.”

To sustain any long-term movement—and to win real power for tenants—it’s going to take more than one-off rent strikes or single issue demands. It’s going to take building powerful, working-class organizations. The Philadelphia Tenants Union, in its guide, writes “Building strong, durable organization among tenants where there is an abundance of leaders and widespread trust yields the most successful and lasting results.” This must be the lesson for our movements going forward. April 1 may indeed be a pivotal moment in a growing housing movement that is being propelled forward by the crisis of this moment. How we help to steer the real hardships that so many workers are facing into a sustained and determined fight in the days that follow, however, will determine whether we can transform this moment of collective suffering into collective power.

This article was originally published at InTheseTimes on March 31, 2020. Reprinted with permission.

About the Author: Mindy Isser works in the labor movement and lives in Philadelphia.

Garbage Collectors’ Lives Are Not Disposable

Image result for mindy isser

The coronavirus pandemic is ravaging our country, manifesting both as a health crisis and a jobs crisis. While the unemployment rate could soar to 30%, many workers whose industries are generally ignored or disrespected have been deemed essential, and have been putting themselves in harm’s way to keep our society functioning.

No role is more critical than that of sanitation workers, who, in times of normalcy, keep cities and towns healthy, clean and safe. They have one of the most important—and most dangerous—jobs in our country, and yet are routinely belittled. But now, in the midst of a global pandemic, we need them more than ever: Their work is critical in containing COVID-19.

While many of us self-isolate at home, sanitation workers are on the front lines, picking up our garbage and potentially exposing themselves to the virus. Sanitation workers in North Carolina, many of whom are members of United Electrical, Radio and Machine Workers of America (UE) Local 150, have been organizing to protect themselves and their families from coronavirus. Unfortunately, the second reported coronavirus-related death in the state was of a Raleigh sanitation worker, Adrian Grubbs. Raleigh City Workers Union, a chapter of the North Carolina Public Service Workers Union, UE Local 150, has put forward a set of 10 demands, including immediate coronavirus tests for all Solid Waste Services workers, proper personal protective equipment, adequate hazard pay, and the ability to immediately meet and confer with the City Manager.

In These Times spoke with Charlen Parker, President of Raleigh City Workers Union. Parker hails from Clinton, North Carolina and has been a sanitation worker for nearly 16 years. He is the president of the Raleigh City Workers Union.

Mindy Isser: I am so sorry about what happened to Adrian. How are you all holding up and dealing with his passing?

Charlen Parker: To a lot of us, it’s still surreal because just about everyone knew him. We saw him just about every day when we came into work. We expected it to be like a regular work week. But then we came in and first they had a meeting where we found out he had it, and then the next day we started hearing little reports that he didn’t make it. It’s a hard pill to swallow when it’s someone that you’re used to seeing and being right there with. We hear about the coronavirus and see it on the news and everything, but a lot of people feel like it doesn’t affect them until it’s right there in your face. Hearts and prayers go out to his family, it’s been very difficult.

Mindy: It sounds like you didn’t hear that he was sick until right before he passed away.

Charlen: Yes, we had a meeting on Tuesday morning as we clocked in, and then they had us divided in groups. Our director told us that Adrian Grubbs had contracted it and that he had permission from the family to let us know about his condition. He made his statement, and we walked out and some of us talked amongst ourselves. We sent him our prayers and hoped that he was gonna be alright and that hopefully in a few weeks that we’d be able to see him. That was Tuesday. Wednesday we came into work and everybody was doing their route, and we can leave whenever we get done to keep us from being on top of each other. I was leaving and walking to the parking lot, and I got a phone call from another employee who told me that he heard that Grubbs didn’t make it, that he had passed. He had heard it from two other co-workers and I was like, okay, you know how people spread rumors and whatnot and sometimes their information is not factual. So I said, I hadn’t heard anything official, so maybe it’s just that they’re running off at the mouth and don’t have the right information. And then we came into work on Thursday morning and there’s another meeting where it’s confirmed that he had passed away.

Mindy: And when people found out, obviously they were really upset and sad. Was anyone afraid for their own health? Because I’m sure people had come into contact with him perhaps before he even knew he was sick.

Charlen: Immediately, we felt the sadness. But then right after the sadness, the question was then, how long had he been sick? Who has he been around? What has he touched? Where had he been at? That quickly became the immediate concern.

Mindy: Did anyone get time off of work to self-isolate or is everything kind of business as usual?

Charlen: When our Director made the initial statement that Grubbs had contracted coronavirus, he also said that there were two employees that had quarantined themselves because they had been in close proximity to Grubbs. They didn’t identify the two employees, and that was basically it.

We’re all always on top of each other, we’re always all running into each other, and we were all wondering who the two employees were and if they had interacted with us—because we don’t know who they are. On the administrative side, they get to work from home, so we don’t know if they were talking about them, and since we’re staggered, you can’t pinpoint if it was one of us, because we’re not all there at the same time. 

Mindy: What is Raleigh doing to protect sanitation workers?

Charlen: They’ve been giving out face masks and latex gloves. I think as of Friday, and I cannot confirm, that they’ve increased the amount of gloves you get. They’re supposed to be sanitizing the building daily, but a lot of my coworkers have expressed concerns about that. The normal person who cleans we saw on Tuesday, but since Tuesday no one that I’ve talked to can account for seeing her or anyone else in the building doing additional cleaning. I don’t want to say they haven’t had anybody, but we haven’t seen anybody. And I think they said they have a company that comes in and does a thorough cleaning of the building, but that’s only once a week.

Mindy: What do you think the city should be doing to protect you?

Charlen: The major concern right now amongst many of my co-workers is that, since Grubbs did have it, many of us want to be tested. We understand that they have limited tests, but from my perspective, we’re on the front lines, and we have to go out there and be in the middle of it. The least that they could do is to test us so that we can either confirm or deny who does or doesn’t have it. We have families. One thing that they mentioned to us was that maybe we can be tested if we start to show symptoms, but you can carry the coronavirus and not have any symptoms—a lot of people don’t feel like they’re taking that into account. Many of us have children, we have people in our families that have health issues, and no one wants to bring that home to our families.

Mindy: How does it feel to be playing such a critical role right now with how serious the coronavirus crisis is becoming?

Charlen: I’ve understood for a while the health risk of not picking up garbage, including the spread of disease and the increase of vermin. Personally, I feel good when I know I’m providing a service that helps people. Especially lately when people are staying home from work, you’ll see whole families outside waving and smiling. Even though we’re going through this crisis, you still see families out smiling and enjoying themselves. It makes it worth it.

Mindy: Many people are working from home right now, but many other workers like yourself can’t do that. What do you think all essential workers—like grocery store workers, utility workers—deserve right now in terms of protections, hazard pay, etc.?

Charlen: All of your frontline employees and essential personnel should be tested because we are the ones in direct contact, we have to be out there. I feel like it shouldn’t be an issue to get us supplies, getting us tested, and doing everything you can do to protect us. One of the options we were talking about was alternating shifts—one crew comes in for a whole week, and the following week they’re off and the other crew comes in for a week. I think this would be a great idea. My only concern is that I don’t know if we have enough personnel to do it and get stuff up off the ground in a timely manner to where guys won’t be out there all day. That’s one of my major concerns.

They have given us a 5% increase in pay, which I don’t feel like is enough. The state is considering time-and-a-half pay. That would be good. Whole Foods is paying an extra $2 an hour, which is more than what we get with our hazard pay.

Mindy: In 2006, Raleigh sanitation workers went on a wildcat strike. Many of their demands were around health and safety issues. How have things changed since you started in Raleigh six years ago?

Charlen: We’re supposed to have a safety coordinator. Since I have been at the City of Raleigh, I’ve had four different safety coordinators, and it’s been almost a year since the last one was there. We currently don’t have a safety coordinator at Solid Waste Services. With regards to safety, we still have some issues. They get into meetings and stress safety, but I don’t think they understand that there are certain things we can’t do because we don’t have enough personnel or equipment. A lot of times we have a lot of equipment issues. We do have a high turnover rate. They say right now that we’re fully staffed, but I don’t see how that could be possible when the city is constantly growing, they’re building subdivisions, and they’re increasing the amount of work we have to do, which means we have to stay out there longer. Sometimes we will go out there and our equipment is not always up to par like it should be. We need adequate equipment to work with.

Mindy: How is UE 150 organizing and fighting back to protect workers during the coronavirus crisis? Have you made any demands of the city?

Charlen: On March 17, we sent a letter with some of our concerns to Mayor Baldwin, City Manager Ruffin Hall, and City Council. They basically ignored us. After Adrian Grubbs, we also sent another letter with 10 demands. Some of the demands include meeting with the City Manager to express concerns about frontline workers. We have concerns and don’t feel like they’re listening to us. Another demand is since the passing of Adrian Grubbs, we haven’t heard the followup to how he got sick, where he got sick, where he’s been, and who he’s been in contact with.

Workers have been standing up and organizing all over the place—I saw Pittsburgh sanitation workers went out on a wildcat strike this past week. Have you all been inspired by other workers who have been speaking out and taking action since the coronavirus started?

Charlen: Yes, of course, but on the other hand, there is a lot of fear out there where I work at. You have some employees that want to stand up and do something. But other workers believe that they’re not gonna listen, they’re not gonna do anything, they’re gonna do what they want to do, they’re gonna treat us how they want, so what’s the point of standing up?

Mindy: How do you think we can fight back against that? Do you think if people saw other workers coming together and winning they would be inspired to take action?

Charlen: We have a new administration in Solid Waste Services. That’s because a couple of years ago we protested people in management, and every single name on all of the petitions we circulated are gone—they either left or were terminated. The new administration cleaned house because of our list of bad supervisors. That’s the power that we have, I’ve been explaining that to my coworkers. The only way we win is by doing something.

Mindy: What would you say to other workers right now—the ones who have to keep coming to work—about how they can keep themselves safe while they’re on the job?

Charlen: Working in sanitation is the fifth most dangerous job in the United States on fatalities. We should get hazard pay all the time. I don’t understand how the police and fire department have no problem getting hazard pay, but we can’t get hazard pay.

If I could borrow from Dominic Harris, the president of the Charlotte City Workers Chapter of UE Local 150, who said on a conference call that the coronavirus crisis is the perfect opportunity for workers. You can see how much power that you’ve got during this crisis and how much they rely and depend on us. This is the perfect opportunity to use that power and stand up and get the things that we need.

This article was originally published at InTheseTimes on March 30, 2020. Reprinted with permission.

About the Author: Mindy Isser works in the labor movement and lives in Philadelphia.

Trump administration wants states to zip their lips about soaring unemployment numbers

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Unemployment is skyrocketing as entire industries shut down or scale back dramatically in response to the coronavirus pandemic. Unemployment claims rose 30% last week, with 281,000 newly jobless people filing for unemployment insurance. But the numbers that are still to come are going to be much worse. How much worse? Well, the Labor Department is asking states not to give any numbers until the official report comes out, because the financial markets will see and it will be bad.

On Wednesday, the Labor Department’s administrator of the Office of Employment Insurance (a career official, not a political appointee) sent state officials an email telling them to “provide information using generalities to describe claims levels (very high, large increase).” Perhaps state officials should pay a visit to Thesaurus.com for some help, and tell the public, “We can’t give you exact numbers here, but there has been an enormous/giant/gigantic/hefty/huge increase in unemployment claims this week. For exact numbers, wait until the federal government releases them next week.” That will surely ease anxieties!

Washington state’s new unemployment claims rose by 150% last week—and while officials there aren’t giving numbers, they did say there’s an “even more dramatic increase this week.” In Pennsylvania, a state labor official told lawmakers and union leaders that there had been 180,000 new unemployment claims in recent days. That’s more than the state typically sees in a month.

It sounds like we might need to go back to the thesaurus to convey the magnitude of the job losses going on. How about gargantuan? Immense? Massive?

Or maybe—here’s a thought—numbers. Waiting until Thursday to know the scope of the economic crisis is not going to calm anyone down. We saw that when Donald Trump attempted to downplay the coronavirus crisis because he was worried about how the markets would respond, and the markets tanked anyway. Everyone knows things are really, really, really bad out there. Knowing that the government is being transparent would at least be one piece of good news.

This article was originally published at Daily Kos on March 20, 2020. Reprinted with permission.

About the Author: Laura Clawson is a Daily Kos contributor at Daily Kos editor since December 2006. Full-time staff since 2011, currently assistant managing editor.

Coronavirus layoffs surge across America, overwhelming unemployment offices

Rebecca Rainey

Employers are slashing jobs at a furious pace across the nation due to mass shutdowns over the coronavirus, slamming state unemployment offices with a crush of filers facing sudden crises.

Long before official government data is expected to reveal the depths of the economic shock inflicted by the coronavirus, reports from state officials and businesses around the country indicate the gathering of a massive wave of unemployment on a scale unseen since the Great Recession.

In New Jersey, 15,000 people applied for unemployment benefits on Monday, a twelvefold increase over normal levels. In Connecticut, nearly 8,000 applications arrived over the weekend, an eightfold increase over the norm. Rhode Island officials reported Tuesday a five-day rise in claims due to the coronavirus from 10 on March 11 to 6,282 on March 16.

More than 45,000 Ohio workers have applied for unemployment over the past week, the Ohio Department of Job and Family Services told Sen. Rob Portman, a nearly sevenfold increase over the previous week.

The dramatic rise in claims could spur further action by Congress beyond the legislation now under discussion. “This demonstrates the urgency for Congress to act, and act quickly,” Portman said Tuesday in a written statement.

According to an NPR/Marist poll conducted Thursday and Friday, 18 percent of households already reported someone being laid off or having hours reduced because of the coronavirus outbreak, with women hit harder (21 percent) than men (16 percent), and people who earn less than $50,000 hit harder (25 percent) than those earning $50,000 or more (14 percent).

“A coronavirus recession is inevitable,” said Josh Bivens, director of research at the left-leaning Economic Policy Institute, in a blog post. He estimated that at least 3 million jobs will be lost by summer. Meanwhile, the U.S. Travel Association was projecting 4.6 million jobs lost this year in the travel industry alone, pushing the unemployment rate up to 6.3 percent.

The layoffs swept businesses large and small. On Tuesday Marriott said it expects to lay off tens of thousands of workers worldwide. MGM Resorts International on Monday closed 150 restaurants and bars, with more closings to come; Caesars Entertainment Corp. said it also has begun layoffs. In D.C., Compass Coffee, a local Starbucks competitor, laid off most of its 189 employees, and the Dubliner, a popular Irish bar on Capitol Hill, laid off all of them, leaving the place empty on St. Patrick’s Day.

During the past 48 hours, unemployment insurance offices around the country were flooded with phone calls, and state unemployment websites crashed in KentuckyOregon, and New York.

Lawmakers on Capitol Hill late Tuesday were racing toward a deal with the White House on an economic stimulus package to aid industries disrupted by the pandemic, and ironing out the details on a separate coronavirus aid package.

But many state unemployment insurance programs are ill-prepared for the downturn. Twenty-two states and jurisdictions, including California, New York, Illinois and Texas, have dangerously low reserves, and 10 have reduced the number of weeks they offer benefits since the 2007-09 Great Recession. The duration of eligibility for unemployment insurance in any given state won’t be affected by the legislation moving through Congress.

With the Trump administration and other nations considering travel restrictions, and more Americans pulling back on nonessential trips, the travel and hospitality industries have been among the first to see job cuts.

“We are adjusting global operations accordingly,” a Marriott spokesperson said in an emailed statement, “which has meant either reduction in hours or a temporary leave for many of our associates at our properties.” The spokesperson said that employees “will keep their health benefits during this difficult period and continue to be eligible for company- paid free short-term disability that provides income protection should they get sick.”

Several airlines have cut back service, and Delta recently announced a hiring freeze in the wake of the outbreak.

Ian Kullgren contributed to this report.

This article was originally published at Politico on March 17, 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.

Prior to joining POLITICO in August 2018, Rainey covered the Occupational Safety and Health administration and regulatory reform on Capitol Hill. Her work has been published by The Washington Post and the Associated Press, among other outlets.

Rainey holds a bachelor’s degree from the Philip Merrill College of Journalism at the University of Maryland.

She was born and raised on the eastern shore of Maryland and grew up 30 minutes from the beach. She loves to camp, hike and be by the water whenever she can.

Economy Gains 266,000 Jobs in November; Unemployment Down Slightly to 3.5%

The U.S. economy gained 266,000 jobs in November, and the unemployment rate was essentially unchanged at 3.5%, according to figures released Friday morning by the U.S. Bureau of Labor Statistics.

In response to the November job numbers, AFL-CIO Chief Economist William Spriggs tweeted:

 

Last month’s biggest job gains were in manufacturing (54,000), health care (45,000), leisure and hospitality (45,000), professional and technical services (31,000), transportation and warehousing (16,000) and financial activities (13,000). Mining lost jobs (-7,000). Employment in other major industries—including retail trade, construction, wholesale trade, information and government—showed little change over the month.

Among the major worker groups, the unemployment rates for teenagers (12.0%), blacks (5.5%), Hispanics (4.2%), adult men (3.2%), whites (3.2%), adult women (3.2%) and Asians (2.6%) showed little or no change in November.

The number of long-term unemployed (those jobless for 27 weeks or more) declined in November and accounted for 20.8% of the unemployed.

This blog was originally published by the AFL-CIO on December 10, 2019. Reprinted with permission. 

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist. Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars.

Trade war drives up unemployment in key 2020 battleground states

Unemployment remains low nationwide, but it’s starting to tick up in a some key places—places dependent on the industries hit hard by Donald Trump’s trade war, and places that just happen to be in battleground states.

In around one in three counties in the United States, unemployment is higher than it was a year ago. That’s a troubling sign, but what may be most significant is that every county in Wisconsin, which Trump narrowly won in 2016, and every county in New Hampshire, which Hillary Clinton narrowly won in 2016, are among those one in three. The same is true of a majority of counties in Michigan, Minnesota, and North Carolina. (The same is also true of some states that won’t be 2020 battlegrounds.)

Analysts differ on what impact rising unemployment might have on Trump’s reelection chances. On the one hand, “In a 2017 analysis, Georgetown University economists modeled how swing-state county unemployment impacted the presidential vote, and found what Georgetown’s Dennis Quinn said in an email was ‘a significant penalty from rising unemployment, especially in swing states like Wisconsin.’” But on the other hand, the director of the Michigan Economic Center says that “I don’t think they will blame Trump for it. They are more likely to keep lashing out at immigrants and others.”

Whatever the political fallout, right now, a food pantry in Marinette, Wisconsin, has seen the number of people needing its services rise by 600 in just six months. That points to rising human suffering, which needs to be fought regardless of who the people in question plan to vote for.

This article was originally published at Daily Kos on November 4, 2019. Reprinted with permission.

About the Author: Laura Clawson is a Daily Kos contributor at Daily Kos editor since December 2006. Full-time staff since 2011, currently assistant managing editor

Economy Gains 312,000 Jobs in December; Unemployment Rises to 3.9%

The U.S. economy gained 312,000 jobs in December, and the unemployment rate rose to 3.9%, according to figures released this morning by the U.S. Bureau of Labor Statistics. This report shows an increase in unemployed workers and while wage gains are stronger, they are not consistent with a tight labor market. This ongoing financial and economic volatility means that the Federal Reserve needs to hold off on more rate increases.

Last month’s biggest job gains were in health care (50,000), professional and business services (43,000), food services and drinking places (41,000), construction (38,000), manufacturing (32,000) and retail trade (24,000). Employment in other major industries—including mining, wholesale trade, transportation and warehousing, information, financial activities and government—showed little change over the month.

Among the major worker groups, the unemployment rates rose for blacks (6.6%), adult men (3.6%) and Asians (3.3%). The jobless rate for teenagers (12.5%), Hispanics (4.4%), adult women (3.5%) and whites (3.4%) and showed little or no change in December.

The number of long-term unemployed (those jobless for 27 weeks or more) declined slightly in December and accounted for 20.5% of the unemployed.

This blog was originally published by the AFL-CIO on January 4, 2019. Reprinted with permission. 

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist. Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars.

Economy Gains 155,000 Jobs in November; Unemployment Unchanged at 3.7%

The U.S. economy gained 155,000 jobs in November, and unemployment was unchanged at 3.7%, according to figures released this morning by the U.S. Bureau of Labor Statistics. The labor market can be a leading indicator for the economy. Soft wage growth has been accompanied by weaker auto sales than typical for this low level of unemployment, leading General Motors to plan plant closings, and slowing home sales point to stresses for workers and the household sector of the economy. The Federal Reserve needs to move with great caution and hold off on more rate increases.

Last month’s biggest job gains were in health care (32,000), professional and business services (32,000), manufacturing (27,000), transportation and warehousing (25,000) and retail trade (18,000). Employment in other major industries—including mining, construction, wholesale trade, information, financial activities, leisure and hospitality, and government—showed little change over the month.  

Among the major worker groups, the unemployment rates for teenagers (12%), blacks (5.9%), Hispanics (4.5%), adult women (3.4%), whites (3.4%), adult men (3.3%) and Asians (2.7%) showed little or no change in November.

The number of long-term unemployed (those jobless for 27 weeks or more) declined slightly in November and accounted for 20.8% of the unemployed.

This blog was originally published by the AFL-CIO on December 7, 2018. Reprinted with permission. 

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist. Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars.

Black workers are still not sharing in the bounty of nation-wide employment gains

Embedded in the nation’s increasingly favorable unemployment statistics — the country is currently in the midst of a record decline in the number of out-of-work Americans — is the persistent fact that black workers aren’t sharing equitably in this rampant job growth.

In September, the most recent period when figures are available, approximately 134,000 jobs were created and the national unemployment rate dropped to 3.7 percent, according the Bureau of Labor Statistics. That’s fantastic news for the nation at large.

But if you drill down into the bureau’s figures, you’ll find that black workers are not celebrating on par with their white colleagues. At 6 percent, the black unemployment rate is nearly twice that of white workers, at 3.3 percent. By way of comparison, Latino workers posted a 4.5 percent unemployment rate, and the Asian rate was nearly equal to whites’ at 3.5 percent.

(October’s unemployment figures are scheduled to be released on Friday. Analysts expect a continuation of these trends with little-to-no narrowing of the gap between white and black employment.)

In a recently released state-by-state review of unemployment rates by race and ethnicity for the third quarter of 2018, Janelle Jones, an analyst at the nonpartisan Economic Policy Institute, found that 12 states have a black unemployment rate that is at least twice as large as the white unemployment rate. What’s more, in each of the 21 states and the District of Columbia, for which figures were available, the black unemployment rate was higher in each of them than it was for white Americans.

Jones’ findings further underscore the fact that even as the nation climbs back from its pre-recession unemployment level, the bounty isn’t filling the pocketbooks of black Americans. For instance, she found the nation’s highest black unemployment rate was in the District of Columbia at 12.4 percent, producing a 6.2-to-1 disparity with white workers in the Nation’s Capitol. Worse, the District has the dubious distinction of having the highest black unemployment rate during the previous eight quarters — this despite the fact that Washington, DC and its surroundings are the third-richest metropolitan area in the country and home to the most affluent population on the East Coast.

Other high unemployment states for black workers included Illinois (9.3 percent), Louisiana (8.5 percent), Alabama (7.1 percent, and New York (7 percent). The lowest unemployment rate for black Americans were Massachusetts and Virginia, both with (3.8 percent).

Among Latino workers, the highest state unemployment rate is in Nebraska (5.9 percent), followed by Connecticut (5.7 percent), Arizona (5.6 percent), Pennsylvania (5.6 percent), and Washington (5.6 percent).

In two states — Colorado and Georgia — the Hispanic unemployment rate was lower than the white unemployment rate. In Colorado, Latino workers’ 2.3 percent unemployment rate was lower than the 2.9 percent rate for white workers, and in Georgia, Latino unemployment rate was 2.8 percent, compared to 3 percent for white workers.

“As the economy continues to recover, all racial and ethnic groups are making employment gains,” Jones said in a statement released with her report earlier this week. “But policymakers should make sure that the recovery reaches everyone before taking their foot off the gas.”

Bloomberg columnist Justin Fox agreed, writing recently that “[b]lack Americans really have been making employment gains in recent years – and they’ll probably keep making them as long as this expansion continues. Which is one more reason to root for it to keep going.”

As Fox described it the falling unemployment rate is, on the whole, a positive development for all Americans, especially black workers in their “prime working” ages between 25 and 54. At present, he said the gap between black and white workers in that realm is at an “all-time low” (noting that such figures can only be compared since 1994 when the federal government began reporting “prime working age” economic figures).

But Andre Perry, a Brookings Institution Metropolitan Policy Program Fellow, cautioned against celebrating too soon. In a recent U.S. News & World Report interview he argued it’s way too early to cheer the economy’s recovery so long as a racial gap exists in employment.

“We need to start talking about prosperity and not whether people have a job. We need to start looking more deeply at equality,” said Perry, who focuses his research on majority-black populated cities in the U.S. “Because when black folks are doing well, that really means America is doing well.”

In other words, Perry says the celebratory narrative on the economy is almost exclusively the story of impressive gains for white workers and tolerance for black workers who continually lag behind.

“Right now, when we’re looking at full employment, what we’re really saying is this is a state of white employment,” Perry said. “We’re willing to base our monetary policy upon that stage and not really cater to the black unemployment rate that is still wanting. You can be at full employment in one population and be in a recession in another. . . . We need to start recognizing these disparities, or we’re going to become more comfortable with them.”

This article was originally published at ThinkProgress on November 2, 2018. Reprinted with permission. 

About the Author: Sam Fulwood is a columnist for ThinkProgress who analyzes the influence of national politics and domestic policies on communities of color across the United States.

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