EDD claims drop again, stay below 100,000

Decline in filings could point to fewer layoffs in California

Initial unemployment claims in California dropped last week and remained well below 100,000 claims for the second straight week, federal labor officials reported.

This is the first time since officials launched business shutdowns to combat the coronavirus that initial jobless claims remained below 100,000 for two consecutive weeks, this news organization’s analysis of the U.S. Labor Department reports shows.

The report represents a welcome counterpoint to the dismal track record for California’s feeble employment sector.

Since the onset of the lockdowns, California has posted weekly jobless claims well above 100,000 for 45 out of 48 weeks.

Last week California workers filed about 88,130 initial claims for unemployment, down 2,340 from the prior week, the U.S. Labor Department reported.

Nationwide, initial jobless claims totaled 745,000 during the week that ended on Feb. 27, up 9,000 from the claims filed on the week ending Feb. 20.

It’s not clear whether efforts to re-open shuttered businesses are having much of an effect on getting employees back to work, said Michael Bernick, an employment attorney with law firm Duane Morris and a former director of the state Employment Development Department.

“The re-openings have not yet led to significant hiring,” Bernick said.

Plus, sporadic layoffs continue to bedevil the Bay Area job market, official filings posted by the state EDD show.

• Fry’s Electronics revealed plans to cut 148 jobs in San Jose. The consumer electronics retailer said in late February it had decided to

cease operations and close all of its stores permanently.

• Clif Bar & Co., a producer of organic foods and beverages, said it was laying off 101 workers in Emeryville.

• United Airlines says it will furlough as many as 3,169 workers at San Francisco International Airport, potentially for six months, starting sometime in April.

• Four Seasons Silicon Valley, a hotel in Palo Alto, has decided to cut 119 jobs.

“The ongoing impact of the Coronavirus pandemic and the corresponding decline in business levels” were the primary factors cited by the Four Seasons hotel for the Palo Alto layoffs,

which the company described as “permanent.”

Although unemployment claims are currently staying below 100,000 in California, the numbers remain far above the typical levels prior to the start of the business shutdowns.

During January 2020 and February 2020, the final two months before the lockdowns began, initial unemployment claims averaged 44,800 a week. That means the most recent weekly total was still double the pre-coronavirus amounts.

“Individual counties have been easing economic restrictions in recent weeks, but this has yet to make a significant dent in ongoing unemployment claims,” Bernick said.