State unemployment claims drop below 100,000, still high

Unemployment claims in California dropped last week, falling below 100,000 for the first time since late February — but claims remain far above what they were before coronavirus linked business shutdowns began more than a year ago, the government reported Thursday.

California workers filed about 95,900 first-time claims for unemployment during the week that ended on March 20, which was a decline of 13,400 from the claims filed the week before, according to a U.S. Labor Department report.

Initial unemployment claims had been above 100,000 during all but four of the 53 weeks since state and local government agencies launched wide-ranging business shutdowns to combat the spread of the coronavirus.

Despite the decline, initial unemployment claims for the most recent reported week remain more than double the weekly totals during January and February 2020, the final two months before the launch of the business shutdowns.

During the first two months of 2020, unemployment claims averaged 44,800 a week in California.

Since the business lockdowns began in mid-March 2020, California’s initial unemployment claims have averaged 234,000 a week, this news organization’s analysis of the weekly filings statewide shows.

Despite the gradual easing of business shutdowns as regions such as the Bay Area crawl away from the most severe levels of restrictions, it remains uncertain as to whether the statewide job market has responded with big-time employment growth.

“So far neither the data nor the reports of local business associations show a change in employment levels or rehiring,” said Michael Bernick, an employment attorney with law firm Duane Morris and a former director of the state Employment Development Department.

In the United States, initial claims for unemployment totaled 684,000 for the week that ended on March 20, representing a decline of 97,000 from the prior week’s total of 781,000 filings, the report shows.

In the United States, initial claims for unemployment totaled 684,000 for the week that ended on March 20, representing a decline of 97,000 from the prior week’s total of 781,000 filings

Ominously, the state’s share of all the claims filed nationwide remains at a high level.

California’s initial unemployment claims last week represented 14.6% of the U.S. totals when comparing claims that weren’t adjusted for seasonal variattions — yet the state accounts for only 11.8% of the nationwide labor pool.

During the prior week, California accounted for 14.4% of the claims filed in the entire country.

“Job postings in California actually plummeted by 20% for the most recent week ending March 19,” Bernick said. “Small business revenues and small business openings remained down by more than 30%, largely unchanged since last fall.”