SALT LAKE CITY — While the number of people filing for unemployment benefits in Utah has declined for the third consecutive week, the number of Utahns seeking relief is still nine times higher than the average that applied for help each week last year.
The Utah Division of Unemployment Insurance reported Thursday that the number of new claims for unemployment compensation for the week of April 19 to April 25 registered at 11,830 individuals — down 40% from the previous week’s 19,751 claims.
The weekly average volume of claims during 2019 was 1,331. Officials said that despite the decline, the state is still experiencing a record number of claims.
“Historically, the highest number of claims you received in a week prior to the pandemic was 5,000. And that was during the federal government shutdown in 2013,” said Unemployment Insurance Division director Kevin Burt. “So to receive 12,000, while trending in a good direction, it is still a historic volume of claims in a single week.”
“We are processing tens of thousands of claims to make sure that those that have been impacted by the pandemic are receiving the relief they need,” he added.
More than 105,000 Utahns filed a weekly claim during the most recent period, resulting in more than $22.6 million paid out in traditional jobless benefits. The report showed another $40.4 million was doled out in $600 weekly stimulus payments for a total of just over $63 million in benefits for the one-week period, which also included 7,316 new claims for Pandemic Unemployment Assistance.
“A decreasing trend in new unemployment insurance claims continued this week though still at a record high compared to pre-pandemic volumes,” he said. “We are encouraged and hopeful to hear from both employers and employees who are returning to work as restrictions begin lifting and assistance like (Paycheck Protection Program) loans are available for employers.”
The Utah Department of Workforce Services reported the industries with the highest percentage of weekly claims were office and administrative support at 14%, sales and related occupations at 10.5%, along with food preparation and serving at 9%.
Utah counties tallying the highest number of new unemployment insurance claims were Salt Lake County at 39.3%, Utah County at 14.3%, Davis County at 8.6%, Weber County at 7.8% and Washington County at 3.7%.
Meanwhile, Utah Gov. Gary Herbert announced this week the state would be transitioning from level of red alert to orange on May 1, allowing for some relaxing of restrictions on public gathering and business operations. The changes will impact some claimants currently receiving unemployment benefits as well as those in the application process. Burt said employees and employers should be aware of how the changes could potentially affect their access to financial compensation from the state.
“As some of the restrictions are being removed from Utah and when it comes to employers allowing employees to come back and the employers are allowed to open businesses, it is very critical to understand that unemployment insurance is intended to provide some economic stability when someone is laid off through no fault of their own, and it has done that,” Burt said.
“But it’s also important to understand it is a temporary assistance program. It was never intended to replace economic activity. So as economic activity returns, it is important that everyone understands the impact of that on their unemployment insurance claim.”
Burt continued, “If I am receiving unemployment insurance, and I am offered a suitable job, and I decide that I want to stay on unemployment insurance, because of the richness of the benefit with that $600 stimulus, it can lead to a decision that now you have quit and that could end your access to the unemployment insurance benefit.
“So an individual that is faced with that decision that chooses to stay on unemployment insurance and reject suitable work might find themselves in a situation where they now do not have unemployment benefits and they could have severed their job attachment as well with that employer,” he said.
Burt advises employees to make sure they consider and understand the ramifications of turning down suitable employment as it relates to their qualification for unemployment insurance benefits. He also advised employers to directly communicate with their employees to ensure to convey any information regarding reestablishing their “suitable” working relationship.
“Employers have to offer the same type of job at the same pay or else it could be not suitable work. But if an employer offers what they believe to be suitable work and an employee turns that down, we do want those employees to report that refusal of work to the Unemployment Insurance Division,” Burt said.
“What we will do is we will freeze that unemployment benefit and get in contact with the claimant and in contact with the employer to determine whether there is good cause for that refusal. If there’s not good cause, it will lead to a ‘quit’ and a loss of unemployment benefits. So it is critical that people understand that as we start to open up the economy.”