SALT LAKE CITY — The number of Utahns requesting jobless benefits remains at historic levels, but is continuing to decline.
The Department of Workforce Services reported Thursday that the number of new unemployment benefit claims in Utah decreased 12% for the week of May 10 to May 16, with 6,275 individuals filing for financial compensation compared to 7,135 the week before. Before the coronavirus pandemic, the average weekly claim volume was at 1,131, the report states.
For the period, 101,389 claims were processed reflecting nearly $27 million in traditional unemployment benefits being distributed to claimants.
Additionally, $49 million was paid out in the extra $600 weekly federal stimulus checks for an overall total of $75 million in unemployment benefits paid to Utahns for the week.
Another 2,604 new Pandemic Unemployment Assistance claims were also submitted.
“We continue to be encouraged by the number of individuals ending their unemployment insurance claims as our economy dials back up,” said Kevin Burt, Unemployment Insurance Division director. “We are also encouraged by the consistent number of weekly claims, yet decreased benefits paid out. This is likely a reflection of individuals gradually returning to work and taking less in their weekly benefit amount.”
The report indicated the industries with the highest percentage of claims this week were office and administrative support at 15%, production occupations at 9%, along with sales and related occupations at 8%. Counties in the state that had the highest number of individuals filing new unemployment insurance claims were Salt Lake County at 43%, Utah County at 14%, Davis County at 8%, Weber County at 7% and Washington County at 4%.
Burt said that from March 15 through May 16, the division received just over 184,000 claims.
“To put that into perspective, during the last three years combined we received 195,000 claims,” he said.
“So, in the last two months we’ve received 184,000 claims (and) over the last previous three years received 195,000 claims. We’ve almost paid out $400 million in unemployment benefits during that time.”
He said the office continues to work diligently to process new and existing claims to ensure that applicants can access the monies they are entitled to. The division also announced a new government funding mechanism that will provide more financial assistance to individuals impacted by the pandemic through the Coronavirus Aid, Relief, and Economic Security Act.
“The Pandemic Extended Unemployment Compensation program is a fully federally funded extension to people who have exhausted their unemployment benefits — (providing) for up to 13 weeks of additional benefits,” he explained.
”What this extended benefit will do is if people exhaust their benefit — meaning they were eligible for 20 weeks (of unemployment compensation), they have hit their 20 weeks or will hit their 20 weeks shortly — this will extend that an additional 13 weeks to cover that individual while they continue to look for employment or while their industry returns and their hours increase as we continue to progress as a state or hopefully (getting to) green (status).”
He noted that for people who are on unemployment now, there is no additional action needed for those that are wanting the additional 13 weeks of benefits.
“What will happen is if a person is receiving unemployment benefits and they hit their final week, it’ll automatically now transition them into the 13-week extension,” Burt said. “For individuals who have already exhausted their benefit, you want to go in and file a new or reopen a claim just like you did with your original claim and then (the system) will determine eligibility for your extended benefit.”
While the federal government has funded stimulus and some extended jobless benefits for individuals across the country, the state has used its own monies to provide some benefits for Utahns through the Unemployment Trust Fund administered by DWS.
“The state trust fund can only be used for benefits, it cannot be used for any other costs, including any administrative costs, it just goes out to pay the benefits,” Burt said. “Prior to the pandemic, Utah had the seventh healthiest trust fund in the nation — over $1.1, billion. as a balance.”
He said without collecting any more taxes, the fund was estimated to be able to provide 20 months of benefits to claimants.
“We’ve actually paid out from the trust fund about $120 million, and so with the $1.1 billion balance and $120 million paid out in benefits, we are not concerned about the solvency of the trust fund,” he said.
Last year, the state paid out $150 million from the trust fund for all of 2019.
For now, however, Utah is in good financial shape to continue being able to meet its obligations to its unemployed residents, he said.
“We hope that this pandemic is different than a recession, (as) a recession tends to lead to people being on assistance for an extended period of time because they have been laid off,” Burt said.
“During the pandemic, most people have been job attached or furloughed, meaning the expectation is yes they came on quickly, but they will also return to work quickly as the economy starts to dial back up and return. All the numbers are pointing to that (process) as starting to occur.”