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How Is Unemployment Due To Coronavirus Shaping Up So Far?

Updated : August 4th, 2020

coronavirus unemployment shaping up

The global economic shutdown following the Coronavirus pandemic began with a lot of speculation and fear over the prospective job losses. Three weeks on we have a clearer picture of what is happening and what the future will need in terms of bouncing back from the economic impact. We will take a brief look at how unemployment due to coronavirus is faring and what the likely future holds.

Unemployment Due To Coronavirus At The Moment

The coronavirus pandemic comes after months of job gains and good economic progress. In January alone nonfarm payroll employment rose by 225,000 and similar numbers were seen in February as well. 

But now nearly 700,000 jobs previously added, have been wiped out by the global slowdown and precautions being taken in the US. As of now only 41 US states have issued lockdown orders, so more claim numbers can be expected if this situation worsens and all states adopt lockdowns.

unemployment claims in march

Over 16 million unemployment claims were filed in the last 3 weeks, though not all of them are by people who have officially lost a job. The government has relaxed UI rules to accommodate those having reduced or no pay and the self-employed. 

The last time in recent history that such huge job losses occurred was from 2008-10, when over 8 million jobs were lost, during the Global Financial Crisis. But this present scenario shows US history’s fastest job losses. 

The largest contributors to unemployment vary across states, but the following sectors have seen the biggest losses:

  1. Accommodation and Food Services
  2. Construction
  3. Manufacturing
  4. Arts and Entertainment

Retail Trade has had a mixed response with some establishments doing well due to their supply of essential goods.

Coronavirus Deaths And Unemployment

The COVID-19 was not initially seen as a terrifying disease but that soon changed as the mortality grew, all over the world. Quite a few senators have ended up sick, though those who can afford good healthcare have made a recovery.

This is what’s causing the fears that have spurred global shutdowns. Most people have family and friends who would be susceptible to the disease. New York alone has already seen more than 7000 deaths.

Even without shutdowns, a recession-like situation was bound to happen, as people stay home to avoid spreading the virus. Once certain economic sectors begin to collapse, they take others down due to the interconnected nature of the economy. No job is truly recession-proof. 

Lessons from Spanish flu: Disease and Unemployment

Coronavirus is not the world’s first pandemic. The last time a disease spread as wide, was the Spanish flu. It ravaged the world for more than a year from 1918-20 and killed off a quarter of the world’s population, while it was still reeling from World War I.

Although the shutdowns may cause some shocks and pain now, the Spanish flu era shows that cities that made earlier and aggressive preventive interventions had a quicker return rate to normal economic activity. Disease always reduces a population’s productivity, hence striving to maintain it provides a more capable population.

What The Future Entails

Some economists think that the Coronavirus pandemic could go away with tremendous job gains, once the labor market fully revives. They liken it to the 1981-82 recession when the short-term recession caused short term layoffs but workers were later rehired.

Others are not so optimistic. It’s likely that Americans would be afraid of future infections following this pandemic and would start saving, especially if a vaccine is slow to develop. They may not frequent restaurants to the pre-coronavirus extents or shop as much, keeping demand suppressed. 

Under such situations, a string of bank loan defaults are likely and may push economic recovery lower. Lenders will not have the confidence to support economic growth.

 

Wait and watch is the only approach we can take during these hard times. The best option for all of us is to follow the physical and social distancing measures and support the country in fighting this pandemic. Fortunately, the government is taking care of Americans in the short run with stimulus checks and UI benefits. Be sure to file yours if you stop receiving pay.

 

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  1. So I have been getting ue for 6 months and on Oct 21 I had a fact finding issue found and cleared after taking a month, I got put on hold I got nothing no benefits nothing because I am on hold until cleared up and it was another month later in my favor, I’ve been without payment since Oct 21 since then I have been on HOLD, I am beyond pissed, I call every Fri I see the letter I received saying its in my favor that says I am Monetary Eligible-yet I still have 6 payments on hold. I call DEO and I talk, I beg and I get told “we are working on it”, the letter is in my favor I am poor not rich I am poor Why how do you people get away with this

  2. Hello

    I’m 59 years old and was laid off in March 2020 due to Covid.
    In June 2020 I was advised my job was eliminated and there is no chance of me
    Being brought back. I’m collecting UI since March.

    Pondering the thought of taking my early retirement pension as I can’t survive on
    UI any longer. My pension is of course reduced due to my age. Full pension is age 62.

    If I apply for early reduced pension in this situation, does my UI benefit get decreased? I’m in New York.
    I’m still looking for full time work. No luck.

    Thank you so much
    Lorraine

  3. i was just layed off from my job, i did collect benefits in pa. my job is seasonal igot unemployment payments in jan. to april i had 26 weeks of unemployment , but only used about 13 weeks, and was called back to work. i received 2 weeks of 600 dollars of stimlus money. my question is now that i reopened my 2020 claim . i,m i still elegibe for any more stimlus payments along with my regular unemployment payments.

  4. I am 65 yrs old in California and being layed off in Dec 2020. If I apply for unemployment benefits and collect a company pension, will the pension reduce the unemployment benefits ? If you answer call unemployment what is the department or do you have a phone number for a help line. I have called and get automated questions that do not apply to my situation.
    Cannot get to a live person.

  5. Several years ago I was part of a reduction in force and was early-retired for pension purposes. I count on this small pension ($2K/mo) to supplement my employment which has been inconsistent this past two years. I am filing for UI in IL and I qualify for it, but they are saying my pension reduces my UI benefit to zero. Is that right?

    1. Mike,

      That is partially right. The pension will have an impact on UI benefits. Please check for relevant info on the Unemployment Office’s website.

  6. I have $219.00 left on my UE and still no work due to covid-19 will i be able to get a extension on my UE and will it cover the last two weeks. I request payment tomorrow.

      1. My benefits have expired, still.unemployed due to over 65, wdiebrtes, high blood pressure and have one kidney, Can I get PUA , Cares Act for any assistance

  7. im working at a place i have been layed off from a lot in my career.i got 30 yrs in there so i can retire now but need another job to make it hoping to stay working and get more hours.If i take a new job and get layed off there I will BE DRAWING 1400 A MONTH FROM THE JOB I WORKED 30 YRS would i be able to draw unemployment if the new job lays me off and would it be reduced because of my retirement money of 1400 month.

  8. My bf was laid off in April he got the the 600 to start with now he is only getting the unemployment and no extra when we hear ppl getting 3 checks totaling 40k that might be lies but still that is bullshit.

  9. I Sharon Bland or Sharon Scott or Sharon Ann Mccraw
    Use my phone to claim two of my boyfriends and my own benefits. Is that ok ?

  10. I’m getting pua on employment and it was supposed to be backdated to May 27th when I wasn’t ableable to start my new job and somehow it’s August 24th they said it would be backdated been sending messages and pua people keep saying they have emailed you guys too but nobody gets back to me who do I need to contact about this thank you

  11. I check my checking account balance every week but I cannot tell if I am getting my 300.00 extra unemployment. Also. How can I tell if I got my back time unemployment .

    1. Thelma,

      I did not understand what you meant. Please reach out to the Unemployment Office for precise answers to all your questions.

  12. I have exhausted my UI and all extensions. Not eligible for Fed Ed. Does EDD open a PUA claim for me. Or do I have to aoole for it. Its been past 30 days since receiving my Fed Ed denial letter.

  13. i have been unemployed for the whole year almost and since i have been trying to distance myself to better my all around health, it took me this long to file for benefits, i was hoping to get back pay all the way to the beginning.

    1. Zach,

      To qualify, the claimant is required to have sufficient earnings/employment during the “Base Period”. Please use the “Benefits Calculator” available on this website for more.

  14. Thank you o much for investigating this. When I received an overpayment statement and my benefits where stopped I felt my heart drop to my stomach. Already being evicted by a slumlord and now no income, i had to start working when i feel very at risk for getting the virus because of pre-existing conditions and the reason for filing in the first place. i am a cosmetologist and considered non-essential. I feel utterley hopeless and helpless in this situation.

  15. I cannot contact anyone in the unemployment offices because the phone hangs up on me in all cases after listening over and over the recorded message. I have called three numbers .

    I have received pandemic unemployment since March 31st. There was a pending adjudication but I never received any questions, letters nor emails about it and I was approved and paid. Now…this is what the website says:
    7 of 7 entries
    Issue Identification Number Employer Name Issue Type Status Date Mailed Level
    0002 7693 59-01
    PUA Pending 11/16/2020 Adjudication
    0002 4773 71-01
    Program Integrity Mailed 11/6/2020 Adjudicati
    Claimant Inbox
    Select the Search button to display your action items. To narrow your search, input issue date range below and select the Search button.
    Issue Date: From: To: 11/6/2020 to 11/16/2020
    Inbox
    • Below are the items that require your attention and that you need to take action on for your claim.
    • Select the Document ID
    I need this money to survive as others do while I am trying to re-establish any contract freelance work I am capable of doing….I report my small jobs as I get them but they do not come close to equaling my unemployment as of yet. Please tell me where I can go to find out what is needed here.

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