NJ unemployment hits record: Over 200K people filed claims after coronavirus closures

More than 206,000 New Jerseyans filed for unemployment insurance last week in the immediate days after mass business closures, banned gatherings and a stay-at-home order to try to stop the spread of the coronavirus.

This stunning number topped the previous week's historic count of people who applied for benefits after losing their jobs or having hours cut, as Gov. Phil Murphy's March 21 order went into effect. Murphy ordered all nonessential retail businesses closed and told people to avoid being out in public unless it was truly necessary.

From March 22 to 28, New Jerseyans filed 206,253 applications, according to U.S. Department of Labor statistics released Thursday. The week before, 155,815 people filed claims, but that week included only three hours of the mandatory business closures.

In comparison, for the 13th week of 2019, residents filed 6,894 applications, according to U.S. Department of Labor data. 

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The trend continued nationwide, as a record 6.6 million applied for benefits, topping the previous week's record 3.3 million unemployment claims. 

These numbers show applications submitted, not how many have been approved. 

New Jersey ranks among the highest in number of unemployment claims last week. Seven states reported more applications: California (878,000), Pennsylvania (405,000), New York (366,000), Michigan (311,000), Ohio (272,000),Texas (275,000) and Florida (227,000).

In the last two weeks, the hardest-hit sectors included food and drink (16.5% of claims), ambulatory health care services (11%) and administrative and support services (7%), according to the state Department of Labor. 

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The state will not release daily numbers, but said it "continues to process thousands of claims an hour." Labor Commissioner Robert Asaro-Angelo said that after receiving a historic 15,000 applications on one day in mid-March, the site crashed. 

For the week covering March 8 to March 14, New Jersey had the third-highest unemployment rate at 2.6%, behind only Alaska (2.8%) and Connecticut (2.7%).

Now formerly ineligible New Jerseyans will be able to receive unemployment benefits, including gig economy workers, contractors and those who are self employed, under the $2 trillion stimulus plan President Donald Trump signed into law Friday. 

The state is still waiting for guidance from the U.S. Department of Labor on how to implement this expansion. Starting next week, an additional $600 will be distributed on top of regular unemployment benefits, as required under the federal stimulus bill. 

"Meanwhile, these workers [now eligible under the federal stimulus] should apply for unemployment insurance," the state Department of Labor said in a press release. "The application likely will be denied, but that initial denial is a necessary step toward being able to collect the COVID-related benefit. Next, these workers should gather their past two years of tax returns, which will become necessary for their claim to be processed once federal rules are established."

The state also launched a job portal last month at covid19.nj.gov with thousands of job opportunities at essential businesses such as grocery stores. 

“We are all so very cognizant that there are delays and backups in the system, and we urge everyone to please have patience and your claim will be taken care of and you will not lose one penny of your benefits,” Murphy said. “But on the other hand, we do have literally thousands of opportunities for employment at essential workplaces listed online.”

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State officials continue to urge companies to keep as many employees on payroll as possible, incentivizing them with business assistance programs and federal aid dollars. 

Under the federal CARES Act, small businesses that keep workers employed are eligible for 100% forgivable loans as part of the Paycheck Protection Program. The federal Families First Coronavirus Response Act, which went into effect April 1, gives small and medium-sized businesses refundable tax credits to cover the cost of providing paid sick and family leave wages to employees related to COVID-19. 

For more information, visit myunemployment.nj.gov, nj.gov/labor or covid19.nj.gov. 

Ashley Balcerzak is a reporter in the New Jersey Statehouse. For unlimited access to her work covering New Jersey’s legislature and political power structure, please subscribe or activate your digital account today.

Email: balcerzaka@northjersey.com Twitter: @abalcerzak