State jobless claims rise slightly to start 2021

The number of Michigan residents seeking unemployment rose slightly last week to 29,033, the first reporting date of the new year, with the expiration of federal assistance and continuing epidemic orders that have some businesses sidelined.

That’s an increase from 19,818 new claims filed the week before.

Continuing jobless claims, those that are active in the state system and receiving benefits, are a week behind, but they also rose to 200,249 for the week ending Dec. 26, up from 165,203 the week before.

Nationally, new jobless claims fell slightly to 787,000, but is still a high number that indicates the economic damage from 10 months of the pandemic.

Today, the government will likely issue a gloomy jobs report for December. Economists expect it to show that hiring slowed for a sixth straight month — and possibly that employers shed positions for the first time since the job market collapsed in April just after the pandemic erupted.

Unemployed Americans gained some urgently needed help late last month when a $900 billion rescue aid package was signed into law. That measure provided a $300-a-week federal jobless benefit on top of an average state benefit of about $320. As many as half the states are now distributing the federal benefit, according to an unofficial tally at UnemploymentPUA.com. In states that take longer to pay out the $300 payments, any missed payments can be made retroactively.

In Michigan, the Unemployment Insurance Agency indicated it is still implementing the additional federal benefit but that it wouldn’t be paid without further guidance from the U.S. Dept. of Labor.

“The U.S. Congress has passed a COVID-19 relief package which will extend federal unemployment programs (PUA and PEUC) through March 14 and will provide an additional $300 per week for anyone receiving unemployment benefits,” the state UIA web page reads.

“Unemployment claimants receiving Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC) will not be able to complete certifications and payments will not be issued for weeks after Dec. 26 until the UIA receives further guidance from the USDOL and the changes are implemented. The UIA is working as quickly as possible to restore these programs.”

Michigan remains under an epidemic order until the middle of the month that bans indoor dining at restaurants, night club operations, indoor and contact sports except professional sports, indoor group fitness classes, and operation of trampoline and water parks.