Unemployment claims are on track to hit a historic 3.4 MILLION as unemployment websites around the country crash under the weight of applications
- Claims for unemployment benefits are on track to reach a staggering 3.4 million for the third week of March
- This would mark the highest level of unemployment ever seen in US history, dwarfing the previous record of nearly 700,000 claims in 1982
- Claims surged by 70,000 last week, but since then, state-wide shutdowns have escalated much further and industries have all but ground to a halt
- Unemployment websites around the country are crashing under the weight of applications, as newly-jobless Americans struggle to access much-needed funds
- In New York state, 1.7 million people called the Department of Labor in the last week and it has seen a 1000 percent increase in claims in some areas
- Economists warned as many as 21 states and US territories could see their unemployment reserve funds go into the red if the anticipated recession hits
- Coronavirus symptoms: what are they and should you see a doctor?
Unemployment claims hit a record high of 3.4 million last week, according to estimates, as unemployment websites around the country are crashing under the weight of applications from newly-jobless Americans.
Businesses continue to shutter across the US, with Waffle House and the Big Three Detroit carmakers the latest to announce further closures as the US grapples to bring the coronavirus pandemic under control.
Workers who have found themselves out of jobs overnight are now struggling to access much-needed benefits as Labor Department websites can't cope with the sudden spike in demand.
Claims for unemployment benefits are on track to reach a staggering 3.4 million for the third week of March, according to analysis from the Economic Policy Institute (EPI).
Claims for unemployment benefits are on track to reach a staggering 3.4 million for the third week of March, according to analysis from the Economic Policy Institute
This would mark the highest level of unemployment ever seen in US history, dwarfing the previous record of nearly 700,000 unemployment claims back in 1982.
'This will dwarf every other week in history, as can be seen by comparing the projection against the trend in initial claims back to 1967,' the study's authors wrote.
The figures, which will be published Thursday, come after the number of claims had already surged by 70,000 last week.
The Labor Department reported last Thursday that unemployment benefits claims had reached 281,000 in the second week of March, up by 70,000.
Both the one-week rise and the total number of applications were far above the levels seen over the past year as the country's unemployment rate fell to a half-century low of 3.5%.
Unionized hospitality workers wait in line in a basement garage to apply for unemployment benefits at the Hospitality Training Academy on March 13. The Labor Department reported last Thursday that unemployment benefits claims had reached 281,000 in the second week of March, up by 70,000 after bars, restaurants and other businesses closed amid the crisis
Since then state-wide shutdowns have escalated much further and industries have all but ground to a halt, with more than a third of Americans now ordered to stay home
But since then, state-wide shutdowns have escalated much further and industries including restaurants and bars, hoteliers, automotives and retail have all but ground to a halt.
California, Connecticut, Delaware, Hawaii, Illinois, Indiana, Kentucky, Louisiana, Massachusetts, Michigan, New Mexico, New York, Oregon, Washington, West Virginia, and Wisconsin all issued shutdowns over the last week, meaning non-essential workers can no longer go to work and non-essential businesses have had to close.
This has left one in three Americans ordered to stay home and many people out of work.
Last week, Goldman Sachs predicted that unemployment claims would reach a record 2.25 million in the third week of March, based on the surge in claims across 30 states.
However, the EPI count of state-level claims from 35 states and Washington DC has already surpassed that figure.
Signage is seen posted on the entrance of the New York State Department of Labor offices on March 20: Unemployment websites around the country are crashing under the weight of applications, as newly-jobless Americans struggle to access much-needed funds
In New York state alone, 1.7 million people called New York State's Department of Labor in the last week and it has seen a 1000 percent increase in claims in some areas, according to a spokesperson.
As the job market becomes increasingly dire, newly unemployed Americans are desperately clamouring for financial assistance from the state.
But they now face the new stress of accessing these funds, with Labor Department websites crashing under the weight of new claims.
People who have been left jobless have spoken out of their difficulties in filing claims.
First, many Labor Department offices are closed under executive orders banning non-essential businesses from staying open.
Then phone lines are jammed with callers.
And now websites are crashing.
A sign in the window announces the closing of the store at Bergdorf Goodman Department store as it sits closed. Economists have warned as many as 21 states and US territories could see their unemployment reserve funds go into the red if the anticipated recession hits
A closed food court in Los Angeles on March 17. The Senate finally reached a deal on the stimulus bill early Wednesday to provide aid for workers affected by the coronavirus outbreak
Julianna Calderon worked as a server at a local Long Island restaurant until last Monday when New York state Governor Andrew Cuomo shuttered all bars and restaurants.
Calderon told ABC News that when she tried to apply for unemployment benefits online, the website kept crashing.
'You'd get through about two pages of paperwork, and the website would just crash,' said Calderon. 'It took me two days alone to create an account.'
When she finally got through on Friday, the website told her to call the department – which triggered further issues.
'Sometimes I would call and it would just be like a dial tone -- or it would just hang up on you midway through the automated message,' she said. 'It makes you just want to stop trying, but you can't ... because you need money.'
New York was not the only state with its labor department website buckling under the strain of new claimants.
Ryan Connolly, a software developer from Tampa Bay, Florida, who lost his job last Tuesday, told ABC he tried to apply for unemployment on the Florida Department of Economic Opportunity website and the pages wouldn't load.
'It would try to load, load, load, and I would get failure messages in my browser, so at that point, reality hit, I was definitely not the only one in this boat,' he said.
It was a similar story in Michigan, where Aaron Garza lost his job in the auto industry this week.
Garza told Bloomberg he tried to file for unemployment on Monday but gave up after the website was taking so long.
A message on the Michigan website Tuesday read: 'Our IT team is making adjustments to restore the system to full capacity. We apologize for any inconvenience.'
The state of Ohio also acknowledged technical issues with its own site, with Governor Jon Husted admitting it 'wasn't built for a crisis'.
Administrative issues aside, concerns are also ramping up over how states will continue to be able to support residents if the mass shutdowns continue for some time.
Christopher O'Leary, a senior economist at the W.E. Upjohn Institute in Kalamazoo, Michigan, warned that as many as 21 states and US territories could see their unemployment reserve funds go into the red if the anticipated recession hits.
'We've already seen some states start to make budget cuts and use their rainy-day funds and reserves,' Brian Sigritz, director of state fiscal studies at the National Association of State Budget Officers, told Bloomberg.
'There is also the possibility of tax increases down the road.'
The Senate finally reached a deal on the stimulus bill early Wednesday, though it hangs in the balance as three Republican Senators Lindsey Graham, Ben Sasse and Tim Scott launched a last-minute objection to the package.
Under the package, people who lose their jobs because of the coronavirus will get four months unemployment pay in addition to a government play to send out individual checks to everyone earning under $95,000.
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