More than 80,000 people filed a jobless claim to receive unemployment compensation last week, the Alabama Department of Labor and the U.S. Department of Labor say. That number is about eight times the number of claims filed the week before when layoffs began hitting the state.
Alabama Department of Labor spokesperson Tara Hutchison said Monday that some 74,056 people filed an initial jobless claim during the week that ended March 28, according to the department’s preliminary data. That number was revised upward to 80,196 in a U.S. Department of Labor report released Thursday, April 2.
More than 40,000 filed during the first four days of the week last week, with the number jumping past 70,000 by the end of the week before being revised even further upward. The new numbers bring the two-week total to more than 90,000 in the state.
About 10,892 people filed initial claims during the week ending March 21, according to the U.S. Department of Labor’s data. That number was also revised upward. That was also a seven-fold increase compared to the week that ended March 14.
The number of people who filed a jobless claim last week is far more than at any point since at least 1987. The U.S. Department of Labor’s weekly unemployment claims data only goes back to 1987 for Alabama.
“In a sharp contrast to earlier recessions when the manufacturing sector leads, this time the service sector—accounting for 67% of the US economy—has seen quick and widespread declines,” said Hung Tran, a nonresident senior fellow in global business and economics at the Atlantic Council. “This probably will make the contraction deeper, quicker and take longer to recover.”
The Alabama Hospitality Association has estimated that some 225,000 hotel and restaurant workers will be laid off during the COVID-19 crisis.
The Economic Policy Institute’s conservative projections have estimated that nearly 200,000 people could lose their jobs in Alabama.
“Current unemployment levels are not far-fetched given the fact that industries including retail, hospitality, and leisure have essentially been shut down overnight due to COVID-19,” said Alexis Crow, an economist at the Atlantic Council. “While some industry bodies’ claims may be undershot, and others somewhat overshot, it will be critically important to see how the US steps in to help workers maintain their jobs in order to create greater stability in the economy. How quickly industries ‘bounce back’ remains to be seen, but once the health crisis is contained, businesses in the hardest hit sectors are likely to return, outlasting those which had vulnerabilities prior to the corona crisis.”
The U.S. Department of Labor reported that more than 3.28 million people across the country filed unemployment claims during the week ending March 21. That shattered the Great Recession’s peak of 665,000 in March of 2009, according to CNBC. More than 6.6 million people across the country filed unemployment claims during the week ending March 28.
In Alabama, you can apply for unemployment by phone or online. There have been issues with people having trouble getting through on the telephone system. The state has said freelancers, independent contractors and gig economy workers can now begin filing.
So many unemployment claims have been filed since businesses began laying off people because of the COVID-19 pandemic that the Department of Labor has been having trouble accepting and processing the filings.
WSFA reported this week that some people have not been able to file.
To help alleviate the strain, the state has waived fees that are typically charged when an employer files for their employees.
To be eligible to file for unemployment insurance related to a COVID-19 layoff or firing, you must meet one of the following requirements:
- Those who are quarantined by a medical professional or a government agency,
- Those who are laid off or sent home without pay for an extended period by their employer due to COVID-19 concerns,
- Those who are diagnosed with COVID-19,
- Or, those who are caring for an immediate family member who is diagnosed with COVID-19.
Workers can file for benefits online at www.labor.alabama.gov or by calling 1-866-234-5382. Online filing is encouraged.