New jobless claims fell again last week in Maine as Congress remains deadlocked over a new coronavirus relief package and a program to help keep small businesses afloat is set to expire.
Mainers filed 2,070 new jobless claims for the week of July 26 to Aug. 1, according to data released Thursday by the Maine Department of Labor. Of those, 1,600 claims were for traditional state benefits and 470 were for benefits under Pandemic Unemployment Assistance, a federal program Congress approved in late March as part of a coronavirus relief package.
That represents 1,700 people who filed claims last week. To qualify for the federal jobless benefits, Mainers must first be denied state benefits before they can apply for them under Pandemic Unemployment Assistance, which extends jobless benefits to those who traditionally don’t qualify for them, such as the self-employed or independent contractors.
Since March 15, Mainers have received $1.32 billion in jobless benefits, according to the Department of Labor. It paid out nearly $74 million in all of 2019.
This week jobless Mainers will see their weekly benefits reduced as much as $600 after the extra weekly payment from the federal government expired late last month. State benefits are capped at $445 weekly, with the average sitting at $327 as of May.
The loss of that benefit would mean a 43 percent income drop for those out-of-work Mainers receiving the average state benefit.
Congress is amidst ongoing negotiations over another federal coronavirus aid package, but Democrats and Republicans remain deadlocked over several issues, including aid for those left jobless because of the pandemic. Republicans have voiced support for including expanded benefits for jobless workers, but have balked at reinstating the full $600 weekly payment and offered to cut it to $400 instead of $200 as proposed earlier, according to the Associated Press.
President Donald Trump is reportedly considering executive action on jobless benefits amid the stalemate in Congress, the Associated Press reports.
That comes as the Paycheck Protection Program is set to expire at the end of the week. The loan program is meant to keep small businesses afloat and retain workers during the pandemic.
Additionally, Mainers filed 53,100 applications to continue receiving state jobless benefits and another 26,400 sought to continue getting benefits under the federal assistance program last week, the department said. Workers must file applications every week to continue receiving jobless benefits.
That represents a decrease in continued jobless claims from the previous week, when 87,200 Mainers sought to renew benefits. But that still remains well above the high seen in April 2009 during the Great Recession, when 28,564 out-of-work Mainers sought to continue receiving jobless benefits.
Total jobless claims over the past four weeks have totaled about 16,470. Jobless claims peaked the week ending April 4 at 30,899 new weekly claims. Those claims fell sharply to 13,421 for the week ending April 11, ending three weeks of record high unemployment filings. Jobless claims for the week ending April 18 totaled 11,561, 7,420 for the week ending April 25, 26,600 for the week ending May 2, 21,000 for the week ending May 9, 11,683 for the week ending May 16, 37,000 for the week ending May 23, 24,500 for the week ending May 30, 6,700 for the week ending June 6, 5,900 for the week ending June 13, 5,600 for the week ending June 20, 5,200 for the week ending June 27, 5,100 for the week ending July 4 8,000 for the week ending July 11, 3,800 for the week ending July 18 and 2,600 for the week ending July 25.
Mainers have filed more than 261,100 jobless claims since March 15. New claims through mid-June surpassed the state’s previous record of 5,634 weekly claims set in January 2009 during the Great Recession, according to state data.
The industries with the highest jobless claims include food services and lodging, with 16,206; retail, with 9,569; health care and social assistance, with 8,593; and manufacturing, with 4,691, according to the Department of Labor.
On Thursday, labor officials said that 530 new and 520 continued jobless claims were canceled due to fraud for the week ending Aug. 1. Since May 30, more than 25,000 new and more than 48,000 continued claims have been determined to be fraudulent, according to the Department of Labor.
Maine’s unemployment rate fell to 6.6 percent in June, down from 9.3 percent in May. That compares with about 3 percent in March and 2.9 percent a year ago. The economic slump brought on by the coronavirus pandemic ended a 39-month streak of unemployment below 4 percent.
Nationally, 1.18 million Americans filed jobless claims for the week ending Aug. 1, down 249,000 from the previous week’s revised total of 1.43 million, according to the U.S. Department of Labor. Since the outbreak began, more than 40 million Americans have sought jobless benefits to weather the economic slowdown.
The national jobless rate fell to 11.1 percent in June as the economy added 4.8 million jobs, the U.S. Bureau of Labor Statistics said last week. Job growth rose sharply in hospitality, with gains also seen in manufacturing, retail and other industries.
The national jobless rate peaked at 14.7 percent in April before falling unexpectedly to 13.3 percent in May. That is still well above February’s 3.5 percent, a nearly 50-year low.