Unemployment steady, still at historic levels

Initial jobless claims in Michigan remained fairly steady last week, indicating that layoffs continue as the state’s economy struggles to keep some momentum, and continuing jobless claims are also steady but still at historic levels.

Another 15,507 workers filed new jobless claims for the week ending Feb. 13, down slightly from the previous week.

Continuing claims – those workers with claims in the state system who are receiving benefits – were at 186,485 for the week ending Feb. 6, the latest available, and only slightly unchanged from the prior week.

Both new and continuing jobless claims in Michigan are about three times higher than they were a year ago prior to the pandemic.

Nationally, new jobless claims rose slightly to 861,000, indicating the labor market has stalled despite a recent drop in coronavirus cases that triggered the economic turmoil last March, according to numbers released Thursday by the U.S. Labor Department.

So far, Michigan has doled out $29.3 billion in state and federal jobless benefits to 3.15 million people since the pandemic took hold last March, indicating that layoffs, whether short-term or long-term, have been widespread.

Despite the hefty payouts over the past year, Michigan insists the state’s unemployment trust fund used to pay state jobless benefits remains healthy with $500 million available to assist workers experiencing layoffs and unlikely to have to borrow from the federal government to pay benefits.

Of the benefits paid out to date, the state’s share has been $5.1 billion with the rest coming from federal programs.

“We are encouraged to hear the UIA projects the UITF will not need to borrow funds in 2021, which means employers will avoid increased employment costs due to borrowing,” said Mike Johnston, Michigan Manufacturing Association vice president for government affairs, in a statement from the state unemployment insurance agency. “One of the best solutions to solvency is getting people back to work, through Work Share, and filling open positions in manufacturing through work search.”

Two federal unemployment aid programs — one that provides up to an extra 24 weeks of support and another that covers self-employed and gig workers — were extended until March 14 by a $900 billion rescue package that was enacted late last year.

President Joe Biden is proposing to extend both programs through August as part of his $1.9 trillion package now before Congress. The legislation would also provide an additional $400 a week in federal jobless aid, on top of state benefits. That money would replace a $300-a-week benefit that was included in the relief package approved last year.