Unemployment claims surge in California as coronavirus outbreak stalls US economy
New unemployment claims surged dramatically in California and the nation last week as the coronavirus outbreak continued to send the economy into a tailspin.
California saw 186,809 new claims last week, up dramatically from 57,606 the previous week.
The state unemployment insurance system has been overwhelmed by the deluge. The state’s nonpartisan Legislative Analyst’s Office has estimated that the first benefits for new claimants will take at least 21 days.
The California surge was repeated throughout the nation. Seasonally adjusted initial claims totaled 3.3 million, an increase of about 3 million from the previous week. The California figure is not seasonally adjusted.
The new national figure is the highest in the history of the program, far above the previous record of 695,000 in October 1982.
California provides jobless benefits of up to $450 a week. Under the economic stimulus plan passed by the Senate Wednesday night, workers will be able to get another $600 weekly for four months. The House will consider the plan Friday.
Calilfornia’s unemployment system has begun increasing its staff and working around the clock. It should also get help from Washington, as the stimulus bill signed into law last week provides about $120 million in additional unemployment insurance funding to the state, and extends the amount of time someone can collect benefits from 26 weeks to 39 if unemployment jumps sharply. The extra 13 weeks would be federally funded.
Another help for state financing: The state’s unemployment insurance fund often becomes insolvent during downturns. To cover the costs, Washington lends money to the state, and the state has to pay interest.
This story was originally published March 26, 2020 at 6:06 AM.
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