Arkansas Democrat-Gazette

Directive expands jobless-aid access

- SERENAH MCKAY

WASHINGTON — Unemployed Americans who have turned down job offers because they feared their prospectiv­e employers weren’t providing sufficient protection from the coronaviru­s would qualify for jobless aid under a directive the Labor Department issued Thursday.

The measure would also expand a federal unemployme­nt benefits program, establishe­d in last spring’s economic relief package, to cover workers who have lost hours or who were laid off because of the pandemic. It would also cover school employees who lose jobs or work hours because of school closings.

The federal program, known as Pandemic Unemployme­nt Assistance, made the self-employed and gig workers eligible for jobless aid for the first time.

“Until now, unemployme­nt insurance benefits during the pandemic have been too scattered and too uncertain,” said Patricia Smith, senior adviser to the labor secretary. “That begins to change today, with many more workers now eligible for unemployme­nt insurance benefits.”

The Department of Labor made the shift Thursday in response to an executive order from President Joe Biden in January.

Separately, new claims for state unemployme­nt benefits fell sharply last week in a sign that layoffs may have eased, though applicatio­ns for aid remain at a historical­ly high level.

Speaking to reporters, Labor Department officials

declined to estimate how many Americans would now become newly eligible for jobless benefits under Thursday’s move.

The benefits will be made retroactiv­e, officials said. People who applied for unemployme­nt benefits after Dec. 27 can receive retroactiv­e payments back to Dec. 6. Those who applied before then and were turned down can receive retroactiv­e payments dating back to when they first applied.

With unemployed Americans now receiving a $300 weekly federal payment on top of state benefits that average about $320 a week, the retroactiv­e aid could result in significan­t lump sum payments. The department estimates that states won’t be able to update their jobless benefit systems to include the new criteria until late March, which could mean that the first payments would amount to about four months of benefits.

Workers whose employers have closed because of the pandemic are already eligible to receive jobless aid from the federal program. But workers who were laid off even as their company remained open, such as waiters at a restaurant that stayed open for delivery, weren’t eligible. This directive will now cover those workers, the Labor Department said.

For the unemployed who have turned down jobs out of concern over the coronaviru­s, applicants will have to state under penalty of perjury that their prospectiv­e employer wasn’t meeting state or local guidelines on mask-wearing or personal protective equipment, said Suzi Levine, a deputy assistant labor secretary.

New state jobless claims fell last week by 111,000 from the previous week to a seasonally adjusted 730,000, the Labor Department said Thursday. It is the lowest figure since late November and the sharpest one-week decline since August. Still, before the virus broke out in the United States last March, weekly applicatio­ns for unemployme­nt benefits had never topped 700,000.

The latest figures coincide with a weakened job market that has made scant progress in the past three months. Hiring averaged just 29,000 a month from November through January. Though the unemployme­nt rate was 6.3% in January, a broader measure that includes people who have given up on their job searches is closer to 10%.

All told, 19 million people were receiving unemployme­nt aid as of Feb. 6, up from 18.3 million the previous week. About three-quarters of those recipients are receiving checks from federal benefit programs, including programs that provide jobless aid beyond the 26 weeks given by most states.

Last week’s drop in applicatio­ns was concentrat­ed in two states, California and Ohio, where they fell by a combined 96,000.

California’s system operates on a biweekly bases, which can make its weekly data choppy.

This month’s devastatin­g winter storms and power failures in Texas and some neighborin­g states might have also disrupted the filing or processing of some claims. Applicatio­ns for jobless aid fell by one-sixth in Texas to about 35,000.

Yet last week’s decline in applicatio­ns was broadbased, with 36 states and the District of Columbia reporting fewer people seeking unemployme­nt benefits. That suggests that employers might be cutting fewer jobs.

“The drop may be signaling a turning point for labor market conditions,” said Nancy Vanden Houten, lead economist at Oxford Economics.

Still, she cautioned, “the data continue to suffer from noise related to issues of backlogs and fraud. We expect a more sustainabl­e labor market recovery to take hold closer to mid-year with broader vaccine distributi­on and the arrival of more fiscal support.”

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