Coronavirus in Oklahoma: Unemployment claims shatter records, again

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Initial claims for unemployment insurance skyrocketed for a second consecutive week in Oklahoma and across the nation as the coronavirus pandemic tightened its grip, the U.S. Labor Department reported Thursday.

The agency estimates 6,648,000 workers idled by the virus across the nation filed initial claims during the week ending March 28 — about double compared to the week before.

In Oklahoma, 44,970 people sought coverage under the program administered by the Oklahoma Employment Security Commission, compared to a revised number of 21,926 the previous week.

Both marks set records that go back as far as seasonally adjusted records have been kept, officials said.

The pandemic continues to impact industries that provide services, especially those involving accommodations and food.

A wider impact was observed during the past week as activities involving economic sectors covering non-essential health care activities, social assistance, manufacturing, retail and wholesale trade and construction also slowed.

The Department of Labor estimates the number of workers receiving unemployment insurance benefits during the week ending March 21 was about 3.03 million, up about 1.25 million from the previous weekly period.

The last time that many or more people were receiving unemployment insurance payments was in July 2013, when about 3.08 million idled workers were drawing payments.

Another interesting bit of information, though not highlighted by Labor officials Thursday, was that every single state in the nation posted increases in initial claims for the most recent week.

States with the largest increases were Pennsylvania, Ohio, Massachusetts, Texas and California.

Robert Dauffenbach, director of the Center for Economic and Management Research at the University of Oklahoma's Price College of Business, called the growing wave of unemployment claims an indicator of future difficulties the nation's economy could face.

When comparing the numbers of initial claims filed over the past two weeks to the nation’s total number of non-farm employed workers, he estimates about 7.1% have sought unemployment compensation, so far.

“That gives us kind of an indicator of the kind of pressure that is on the system,” he said. “We are looking at some very large numbers, which indicates the situation we are in right now. It is pretty dire.”

In Oklahoma

As for Oklahoma, Dauffenbach estimates that about 3.9% of its non-farm employed workers have sought unemployment assistance during that two-week period.

That is at the lower end of a range that runs from between 0.8% in the Virgin Islands to 12.9% in Pennsylvania.

“Yes, we are looking at twice the magnitude of what we saw last week, but it is still somewhat low, compared to the national economy," Dauffenbach said. “There always tends to be somewhat of a lag between what is happening in Oklahoma and what is happening across the country."

As for continuing claims for unemployment insurance, Labor Department data showed there were 24,519 Oklahomans drawing benefits for the week ending March 28, up 7,665 from the previous week.

“To call this unprecedented doesn’t begin to explain the enormity of the impact COVID-19 related job losses are having on our state and our economy,” Robin Roberson, the commission’s executive director, said Thursday. “We know people are anxious. We know people want to work.”

Roberson stressed Thursday that out of work Oklahomans are being asked to file their initial claims at unemployment.ok.gov.

“We know assistance is needed, and we appreciate Oklahomans working with us to process this tsunami-like wave of claims quickly and efficiently,” Roberson said.

The OESC phone system for claims is overloaded and, despite assistance from other agencies in expanding its capabilities, individuals are finding themselves on hold for hours, disconnected, or unable to get through at all.

“We’re probably at least two weeks away from receiving federal funding approved by Congress and President Trump last Friday for nontraditional (self-employed) workers,” Roberson said.

Roberson noted the new federal law expands the number of weeks of unemployment available to individuals that either are being furloughed or were laid off because of the pandemic.

It also increases the amount of funds an individual may receive weekly over the state’s established maximum payment for unemployment insurance.

The one-week waiting period to file for unemployment has been waived for first-time claimants. The state also waived additional charges employers could have seen in future required payments into the compensation system influenced by numbers of each's past or furloughed employees who are filing for unemployment insurance benefits.

Roberson noted many employers urgently need workers. The state posts those employers' needs on okjobmatch.com.

“We look forward, in a short amount of time, to being able to assist most Oklahomans who are out of work through no fault of their own,” Roberson said.