The Middletown Press (Middletown, CT)
Unemployment grows
Jobless claims near a third the size of state’s pre-pandemic workforce
As independent contractors unleashed a flood of new unemployment claims in May, the Connecticut Department of Labor has now processed well over a half million applications with more pending, approaching a third of the number of state residents holding jobs entering March.
Under the federal Pandemic Unemployment Assistance program, solo entrepreneurs have been able to seek jobless compensation, denied to most in the past.
DOL has now processed about 536,000 claims for unemployment assistance since Gov. Ned Lamont’s March 10 declaration of a public health emergency, equating to 31 percent of the state’s employed workforce in February.
Over the past few months, unemployment benefits have provided a nearly $2 billion backstop for Connecticut residents thrown off the job and strapped for cash. Some 55,500 Connecticut businesses have paid out an additional $5 billion or more through loans they received via the Paycheck Protection Program through the U.S. Department of the Treasury and local banks, with amounts to be forgiven depending on how many people they keep on the payroll two months after receiving the funds.
Unknown is how quickly employers will put furloughed workers back on the payroll, with malls and other retailers allowed to reopen their doors last week and restaurants looking ahead to a resumption of indoor service in June, along with the Foxwoods and Mohegan Sun casinos that employ thousands of people in eastern Connecticut.
“In the last week or two, we have seen a bit of a drop (in claims),” said DOL commissioner Kurt Westby, speaking Thursday on a conference call. “A certain number of people are getting off unemployment, ... we think.”
On Thursday, the U.S. Department of Labor reported Connecticut’s insured unemployment at more than 275,000 people, less than half of the 565,000 claims the state had received as of this week. As of Tuesday, individuals that are reaching the 26-week cap on jobless benefits they filed late last year can apply for a 13-week extension, with additional extensions possible as Congress and the White House gauge the need.
“They have been talking about yet another extension,” Westby said. “Any benefits even beyond that — it’s really up in the air.”
The official unemployment rates for Connecticut and other states have lagged behind the numbers suggested by the volume of initial claims. Connecticut’s insured unemployment rate reported by the federal government was at 18 percent of those available to work Thursday. That was 10th highest in the nation, with Washington far out front at 31 percent, a possible preview of the actual numbers as claim activity continues.
Westby said Thursday DOL has yet to observe any significant activity by organized crime rings attempting to divert claims through identification theft or other means, as has been the case in some other states.
The DOL commissioner also said DOL plans to have a new contact center online by July to better handle existing and new claims, a response to a flood of complaints this spring over DOL’s ability to process claims and troubleshoot problems.
“This is state of the art and will be way more efficient than anything we have right now,” Westby said. “The moneys procured for that will be federal dollars.”