SALT LAKE CITY — The state saw a 16% drop in new jobless claims last week as fewer Utahns are filing for unemployment compensation, according to figures the Utah Department of Workforce Services reported Thursday.
Data indicated the number of total new claims filed for unemployment benefits in Utah registered at 5,080 for the week of July 26 to Aug. 1, with just over $75 million in benefits doled out to claimants. There were 81,439 continued claims filed during that same week.
“Since March 15, the beginning of the pandemic, when we saw an increase to unemployment insurance claims here in Utah, we have received 268,573 new applications. That is four years more than four years worth of work received in 20 weeks,” said Unemployment Insurance Division director. Kevin Burt “We’ve also paid out $1.3 billion in unemployment benefits, since March 15 — that is more benefits than we paid in the previous seven years combined.”
Recently, however, he said a new trend has started to emerge.
“Over the past two weeks we have seen new unemployment claims drop by 28% while also seeing a continued, gradual decrease in ongoing unemployment claims,” he said. “Certainly employment continues to be impacted for many, but this improvement is critical as the $600 federal stimulus has expired for all claimants.”
He added that job attachment status for active claimants is set to expire on Aug. 15. While this change will not necessarily result in ineligibility to continue receiving benefits, people will be required to register for work as well as report at least four job contacts per week that unemployment assistance is requested, he said.
“As of this week and moving forward, new claims and ongoing claims will no longer be eligible for the $600 a week stimulus. Individuals can remain on unemployment insurance, but it will return to the previous state-only benefit of about a 40 to 50% replacement wage,” he said. “That is also true for the self-employed and gig workers who are receiving the pandemic unemployment assistance. That is a temporary federally funded program that will last up through the end of the year, but is also based on the state calculation of unemployment benefits, which is about a 40 to 50% replacement wage.”
Burt encouraged former recipients who are still looking for work to consider broadening their search and prospective employers to do the same.
“Individuals that cannot return or have not returned after 21 weeks really need to start looking for other job opportunities,” he said. “Many industries have been able to successfully adjust to this pandemic and been able to grow and expand. We’ve seen an increase from 20,000 job postings to 28,00,0 job postings. It’s not that there are not jobs out there. There are industries though, however, that have not been able to adjust to this pandemic.”
For those who remain unemployed, Burt said the state does have programs to help qualified applicants with necessities like food and housing.
“We’ve seen other programs start to increase in requests and needs, such as the (Supplemental Nutrition Assistance Program) or the Food Assistance Program or the rental assistance program or medical assistance and other safety net programs,” he said.
“If you’re having difficulty with the rent, with the loss of that $600 weekly stimulus or the exhaustion of the unemployment benefits, you can call 211 and start to apply and see if you’re eligible for the rent assistance,” Burt said. “With the unemployment assistance, the rent assistance, the SNAP benefits (and) the medical benefits, it’s going to be that you’ll have to use all safety net programs to sustain yourself.”
He noted that DWS is hosting a free virtual job fair on Aug. 27 that will include dozens of employers seeking to fill thousands of available positions. Job seekers can visit jobs.utah.gov/ui/home for more information.
“The day before, Aug. 26, there is a free virtual job fair prep class,” Burt said. “Connecting with employers in a virtual environment is different, so those who have not done it before (should) to go to that class the day before to be prepared for what they will experience in the virtual job fair so they can focus on building that relationship and connecting with those employers and finding that employment.”