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*** UPDATED x1 *** New unemployment benefit applications back on the rise nationally, but Illinois continues slight downward trend

Thursday, Aug 20, 2020 - Posted by Rich Miller

* AP

The number of laid-off workers seeking U.S. unemployment benefits rose to 1.1 million last week after two weeks of declines, evidence that many employers are still slashing jobs as the coronavirus bedevils the U.S. economy.

The latest figures, released Thursday by the Labor Department, suggest that more than five months after the viral outbreak erupted the economy is still weak, despite recent gains as some businesses reopen and some sectors like housing and manufacturing have rebounded. Jobless claims had fallen last week below 1 million for the first time since March, to 971,000. A rising number of people who have lost jobs say they consider their loss to be permanent.

The total number of people receiving unemployment aid declined last week from 15.5 million to 14.8 million, the government said Thursday. Those recipients are now receiving far less aid because a $600-a-week federal benefit has expired, which means the unemployed must now get by solely on much smaller aid from their states. The loss of the federal benefit has deepened the struggles for many, including a higher risk of eviction from their homes.

President Donald Trump has signed an executive order to provide $300 a week in federal unemployment aid, with money drawn from a disaster relief fund. Twenty-five states have said they will apply for the federal money, though they would need to revamp their computer systems to do so. Other states are still considering whether to take that step; two have said they won’t.

* Illinois

The U.S. Department of Labor estimates 21,956 new unemployment claims were filed during the week of August 10 in Illinois, according to the DOL’s weekly claims report released Thursday. […]

The U.S. Department of Labor estimates 22,387 new claims in Illinois new unemployment claims were filed during the week of August 3 in Illinois.

The U.S. Department of Labor estimates 24,712 new unemployment claims were filed during the week of July 27 in Illinois.

The U.S. Department of Labor estimated 32,465 new unemployment claims were filed during the week of July 20 in Illinois.

The Illinois Department of Employment Security reported 36,435 new unemployment claims were filed during the week of July 13 in Illinois.

* Meanwhile

The Illinois unemployment system may not be doing enough to protect benefits recipients from scammers who hijack their accounts and move money in their own accounts.

Some believe the Illinois Department of Employment Security could have prevented this if they had taken one more simple security step: two factor authentication.

Two factor authentication is a text or email sent to a device you possess to confirm you made a change to an account. The text or email includes a code which is used to confirm the change. It’s often used for social media, credit cards and bank accounts, among other things. […]

“It never gives you the opportunity to put in a numbers where you can get an SMS text,” said scam victim Russel McFeely.

McFeely lost $1,800 when a criminal hacked his IDES account and moved the benefits into another account.

*** UPDATE *** IDES

The Illinois Department of Employment Security (IDES) announced today that the unemployment rate fell -3.2 percentage points to 11.3 percent, while nonfarm payrolls added +93,200 jobs in July, based on preliminary data provided by the U.S. Bureau of Labor Statistics (BLS) and released by IDES. The June monthly change in payrolls was revised downward from the preliminary report, from +142,800 to +142,300 jobs. The June unemployment rate was revised downward from the preliminary report, from 14.6 percent to 14.5 percent.

The July payroll jobs estimate and unemployment rate reflects activity for the week including the 12th. The BLS has published FAQs for the July payroll jobs and the unemployment rate.

The state’s unemployment rate was +1.1 percentage points higher than the national unemployment rate reported for July, which was 10.2 percent, down -0.9 percentage points from the previous month. The Illinois unemployment rate was up +7.4 percentage points from a year ago when it was 3.9 percent.

In July, the three industry sectors with the largest over-the-month gains in employment were: Leisure and Hospitality (+65,300), Education and Health Services (+14,100) and Professional and Business Services (+8,400). The industry sectors with the largest payroll declines were: Manufacturing (-4,600), Construction (-3,300) and Information (-1,200).

“While we’re happy to see the unemployment rate and payrolls moving in the right direction, IDES remains committed to serving our claimants’ needs during this continued unprecedented time,” said Acting Director Kristin Richards. “As we move through this period of uncertainty, the Department is working as vigilantly as possible to rise to the challenge and provide benefits and employment services to those who need them.”

“While data from July demonstrate continued progress in the face of extraordinarily challenging economic times, it’s clear the pandemic is continuing to have an unprecedented effect on our economy. Evidence from other states has shown that ensuring public health is the quickest way to an economic recovery,” said Michael Negron, Acting Director of the Department of Commerce and Economic Opportunity (DCEO). “With that in mind, DCEO remains committed to investments that will support Illinois businesses and residents facing the most acute effects of this crisis, while making continued progress under Governor Pritzker’s Restore Illinois plan to safely reopen our state economy.”

Compared to a year ago, nonfarm payroll employment decreased by -508,000 jobs, with losses across all major industries. The industry groups with the largest jobs decreases were: Leisure and Hospitality (-164,000), Professional and Business Services (-81,300) and Trade, Transportation, and Utilities (-62,900). Illinois nonfarm payrolls were down -8.3 percent over-the-year as compared to the nation’s -7.5 percent over-the-year decline in July.

The number of unemployed workers fell sharply from the prior month, a -25.2 percent decrease to 705,600 but was up +179.8 percent over the same month for the prior year. The labor force was down -3.9 percent over-the-month and -3.2 percent over-the-year. The unemployment rate identifies those individuals who are out of work and seeking employment. An individual who exhausts or is ineligible for benefits is still reflected in the unemployment rate if they actively seek work. [Emphasis added.]

       

27 Comments
  1. - Ralph - Thursday, Aug 20, 20 @ 10:05 am:

    Our town is full of “help wanted” signs. My friend with a 4 state employment agency said that manufacturing job openings have increased by 200% since August 2019. Big problem for companies that offering $15-$18/hour, when people are making $20/hour staying on unemployment.


  2. - bhartbanjo - Thursday, Aug 20, 20 @ 10:05 am:

    Two-factor is a pain, but a good idea. I’ve been increasing my use of it, particularly on financial sort of sites.

    Speaking as someone who has locked himself out of his car and house, security in general is always a bit of a pain.


  3. - Oswego Willy - Thursday, Aug 20, 20 @ 10:12 am:

    === My friend===

    I stopped reading after that. Ugh.

    It’s good news as Illinois is trending the other way but we are seeing the closing of businesses or an example Navy Pier is closing until the spring.

    The trend isn’t a true measure of an actual turn for the good?


  4. - Ralph - Thursday, Aug 20, 20 @ 10:18 am:

    OW,
    Nice “head in the sand” approach. That’s why the out migration from Illinois surprised so many. The narrative didn’t fit their political view, so they chose to ignore.


  5. - cler dcn - Thursday, Aug 20, 20 @ 10:23 am:

    To OW.
    Not reading further indicates just how lost you are in the picture of what is going on. Swimming in the open water is different that watching others swim in it.


  6. - Oswego Willy - Thursday, Aug 20, 20 @ 10:24 am:

    === Nice “head in the sand” approach===

    Because you think people are lazy? That’s an odd way to look at things.

    The rest?

    The rest is your mouth breathing. People are leaving because Illinoisans are lazy and want to live on unemployment?


  7. - Jibba - Thursday, Aug 20, 20 @ 10:34 am:

    Hey Ralph. My town is not full of help wanted signs. So which of us is right? That’s why they sat the plural of anectdote is not data.


  8. - Ralph - Thursday, Aug 20, 20 @ 10:37 am:

    OW,
    Nice deflection (attempt) there.

    When people can earn more staying at home, they have no incentive to return to work.

    People are leaving the state for a host of reasons: high taxes (with more on the way), high work comp. for employers.

    What would you do to promote companies to come to Illinois?


  9. - Oswego Willy - Thursday, Aug 20, 20 @ 10:43 am:

    - Ralph -

    === === Nice “head in the sand” approach===

    Because you think people are lazy? That’s an odd way to look at things.===

    === Nice deflection (attempt) there.

    When people can earn more staying at home, they have no incentive to return to work.===

    Friend, how is that deflection, you just reinforced what i said you think? You understand how words work right?

    === People are leaving the state for a host of reasons: high taxes (with more on the way), high work comp. for employers.===

    Why are you still here?

    Workers Comp? People themselves are leaving because of workers’ compensation? People are. Stay off the IPI, it’s a nice high but lacks substance to thoughts. Opinions aren’t facts.

    === What would you do to promote companies to come to Illinois?===

    I’m not the Governor, an elected official of any kind, but making it about me isn’t helping your argument either.


  10. - Ok - Thursday, Aug 20, 20 @ 10:45 am:

    I agree with Ralph that the best way to get our economy moving again is throwing all the unemployed off the deep end to see who can swim by themselves.

    Congrats to those 1% of folks who can swim with all those help wanted signs out there.


  11. - Rich Miller - Thursday, Aug 20, 20 @ 10:45 am:

    ===Our town is full of “help wanted” signs===

    Since your IP address is from the Netherlands, it’s tough to verify your claim. But, please do tell us what town is in such dire and widespread need of workers during a national economic meltdown.


  12. - Oswego Willy - Thursday, Aug 20, 20 @ 10:51 am:

    === Not reading further indicates…===

    … anecdotal isn’t data.

    That’s what it indicates


  13. - Oswego Willy - Thursday, Aug 20, 20 @ 10:52 am:

    === We’ve got low(er) property taxes===

    In the Netherlands?


  14. - cermak_rd - Thursday, Aug 20, 20 @ 10:55 am:

    $20/hour on unemployment? For how many hours a week? I believe you get a complicated formula starting with the 2 quarters you earned the most out of the last 4 then take 50% of that. To a max of like 480/week. Even if you add on the extra $150 per week that was there during the $600/mo extra you don’t get 20/week and only those who were much higher earners are going to be getting the max anyway.

    So I can see someone who is specialized and used to get $30/hour deciding to pass on a job offering half that that doesn’t use his specialization.


  15. - cermak_rd - Thursday, Aug 20, 20 @ 10:57 am:

    I believe the Netherlands has much higher income taxes. But Ralph could be using a VPN.


  16. - Dotnonymous - Thursday, Aug 20, 20 @ 11:17 am:

    “My friends” last name is “a lot of people”…?


  17. - Fly like an eagle - Thursday, Aug 20, 20 @ 1:23 pm:

    I know some people who could use $18 an hour. Where’s the town, Ralph?


  18. - Fly like an eagle - Thursday, Aug 20, 20 @ 1:29 pm:

    The IDES needs two factor authentication when a person signs up. So many places do that now. This would stop a lot of the scams.


  19. - Rich Miller - Thursday, Aug 20, 20 @ 1:30 pm:

    ===Where’s the town, Ralph? ===

    Cloud cuckoo land https://en.wikipedia.org/wiki/Cloud_cuckoo_land


  20. - JS Mill - Thursday, Aug 20, 20 @ 2:55 pm:

    =My friend=

    Is his name “Q” or “anonymous”? Asking for “my” friend.


  21. - Lurker - Thursday, Aug 20, 20 @ 3:42 pm:

    @ralph
    I wish I had friends

    @post
    I think many unemployment numbers are understated as you read too much about the IDES problems.


  22. - Last Bull Moose - Thursday, Aug 20, 20 @ 5:34 pm:

    In Naperville I see help wanted signs at Home Depot, Lowe’s,
    and Target. No way these companies can absorb all the unemployed retail workers.

    It is going to take time to crawl out of this hole. This is a sinkhole not a gopher hole.


  23. - Huh? - Thursday, Aug 20, 20 @ 6:01 pm:

    “people are making $20/hour staying on unemployment.”

    Not anymore. The federal $600/week expired.

    When I was unemployment during 2010, I got $398/week. Nowhere near your $20/hour unemployment.


  24. - Cash - Thursday, Aug 20, 20 @ 10:13 pm:

    cermak ==Ralph could be using a VPN.==
    Very possible. However, based on the distance my money is on a proxy.

    ow ==In the Netherlands?==
    It’s called being anonymous. You really think somebody named “Ralph” is commenting from 4,300 miles away? Bless your heart. LOL.


  25. - Oswego Willy - Thursday, Aug 20, 20 @ 10:20 pm:

    === You really think somebody named “Ralph” is commenting from 4,300 miles away?===

    How adorable, you haven’t figured out snark.


  26. - 17% Solution - Friday, Aug 21, 20 @ 6:38 am:

    So where is Ralph anyway? His head got caught in the sand somewhere?


  27. - Bothanspy - Friday, Aug 21, 20 @ 8:01 am:

    Two factor may help stop some of the scams if and only if the account being scammed already existed in the IDES system. From what I am hearing from former colleagues, many of the fradulent claims are being filed for claimants who have never filed before and have no IDES presence. If those accounts establish their own phone and email address, two factor doesn’t solve anything.


Sorry, comments for this post are now closed.


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