Unemployment Claims in Ohio Fall Slightly to 13,509

YOUNGSTOWN, Ohio – There were 13,509 new unemployment claims filed in Ohio last week, a dip of about 200, according to the state’s Department of Job and Family Services.

In addition, there were 130,618 continued unemployment claims the week ended Sept. 4, down roughly 4,000 from the week before.

Claims for pandemic unemployment assistance – available to those who don’t qualify for traditional unemployment benefits, such as part-time workers and the self-employed – dropped steeply to 5,355 new claims last week, less than half of what was filed the previous week. Continued PUA claims rose to 234,918, an increase of about 31,000.

In Pennsylvania, there were 10,727 new unemployment claims filed the week ended Aug. 28, according to the state’s Department of Labor, up about 1,000 from the week before.

There were also 3,212 new claims for pandemic unemployment assistance filed the week ended Sept. 4, a drop of 400.

Nationwide, the number of Americans seeking unemployment benefits fell last week to 310,000, a pandemic low and a sign that the surge in COVID-19 cases caused by the delta variant has yet to lead to widespread layoffs.

Thursday’s report from the Labor Department showed that jobless claims dropped from a revised total of 345,000 the week before. The number of applications has fallen steadily since topping 900,000 in early January, reflecting the steady reopening of the economy after the pandemic recession.

But the spread of the delta variant this summer has put renewed pressure on the economy and the job market. On Wednesday, the Federal Reserve reported that U.S. economic activity “downshifted” in July and August, in part because of a pullback in dining out, travel and tourism related to concerns about the delta variant.

Still, the ongoing drop in applications for unemployment aid — six declines in the past seven weeks — makes clear that most companies are holding onto their workers despite the slowdown. That trend should help sustain the economic rebound through the current wave of infections.

The pace of hiring, though, has weakened — at least for now. Last week, the government reported that hiring slowed dramatically in August, with employers adding just 235,000 jobs after having added roughly a million in both June and July. Hiring plummeted in industries that require face-to-face contact with the public, notably restaurants, hotels and retail. Still, some jobs were added in other areas, and the unemployment rate actually dropped to 5.2% from 5.4%.

The steady fall in weekly applications for unemployment benefits coincides with a scaling-back of aid for jobless Americans. This week, more than 8 million people lost all their unemployment benefits with the expiration of two federal programs that covered gig workers and people who have been jobless for more than six months. Those emergency programs were created in March 2020, when the pandemic first tore through the economy.

That cutoff isn’t yet reflected in the weekly jobless claims report. The report’s data on the emergency programs is delayed by two weeks. As of Aug. 21, 8.8 million people were receiving benefits from these two programs.

An additional 2.6 million people were receiving regular state unemployment aid. These recipients have just lost a $300-a-week federal unemployment supplement, which also expired this week.

Some business owners had complained that the federal supplement made it harder to fill open jobs. Those pleas led governors in about 25 states to cancel the $300 payment early and to shut off the two emergency programs in most of those states as well. But academic research has found that so far, the early cut-offs in jobless benefits have led to only a small increase in hiring in those states.

Many economists express concern that the cut-off will lead to financial hardship because the resurgence of the pandemic will make it harder for some of the unemployed to find work. After previous recessions, emergency expansions of jobless aid ended at a time when far fewer people were still receiving benefits.

The Associated Press contributed to this story.

Copyright 2021 The Business Journal, Youngstown, Ohio.