Applications for unemployment aid in Florida soar to highest level since August

Applications for jobless aid in Florida unexpectedly soared last week, the U.S. Department of Labor reported Thursday — a sign that the economic misery wrought by the coronavirus pandemic continues.

For the week ending

Jan. 9, new applications for unemployment assistance tripled from 24,697 to 75,444. So-called continuing claims, or the number of filers receiving assistance for at least two straight weeks, climbed from 129,575 to 155,097. The state also saw 37,175 new claims for federal Pandemic Unemployment Assistance, or aid for individuals, like gig workers, who are not eligible for traditional assistance.

For the U.S. as a whole, new claims reached their highest level since August, hitting 965,000.

The new data were foreshadowed by December’s dismal jobs report, which showed the U.S. shed a net 140,000 jobs.

Economists say Florida’s surge was likely driven by the new federal $300 unemployment assistance supplement approved last month by Congress — which may have encouraged those on the sidelines to apply for aid — and seasonal factors.

University of Central Florida economist Sean Snaith said most of the increase was likely driven by individuals who may have held a holiday season job suddenly finding themselves out of work. “I think we’ll have to see over the next two months whether this is the trend, but today’s data is likely more seasonally driven and exacerbated by additional federal unemployment assistance.”

Ian Shepherdson, chief economist at research group Pantheon Macroeconomics, also said much of the increase was likely the result of seasonal factors, and that Thursday’s data print may have been an “anomaly.”

“It’s more likely, in our view, that claims will drift sideways, more or less, over the next two-to-three months, before restrictions on the services sector can be gradually eased as vaccination brings herd immunity into sight,” he said in a note to clients Thursday.

The year has started off with a flurry of new layoffs in Florida, including 202 at Rosen Hotels and Resorts in Orlando; 160 at the Tampa Bay Times’ printing plant; 87 at a pipe fitting operation in Panama City; and 82 at a wine distribution group.

In the Census’ most recent survey of cities, 40% of Miami residents said they expect someone in their household to have a loss in employment income in the next four weeks — the highest response rate since the survey began. Another

44.3% report substantial difficulties paying for basic household goods.

“Weekly jobless claims were 787,000 to start the new year for the January 2 week which indicates the recession in the labor market isn’t over yet and hardship remains for millions of Americans without paychecks,” Chris Rupkey, chief financial economist for international finanice group MUFG Union Bank, said in a note to clients this week.