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*** UPDATED x1 *** New jobless claims fall nationally and in Illinois, but serious problems persist here

Friday, Mar 12, 2021 - Posted by Rich Miller

U.S. states saw new jobless claims fall more than expected to reach a four-month low last week, as impending spring weather and more vaccine-driven business reopenings allow hiring to pick up.

The Department of Labor released its weekly report on new jobless claims on Thursday at 8:30 a.m. ET. Here were the main metrics included in the report, compared to consensus data compiled by Bloomberg:

• Initial jobless claims, week ended March 6: 712,000 vs. 725,000 expected and a revised 754,000 during the prior week
• Continuing claims, week ended February 27: 4.144 million vs. 4.200 million expected and a revised 4.337 million during the prior week

* CBS 2…

The Illinois Department of Employment Security (IDES) reported 57,483 new unemployment claims were filed last week, a nearly 16% decrease from the week before, when 68,111 people filed.

For comparison, during the same timeframe last year, 8,727people filed claims in Illinois. That’s a 559% increase. […]

Illinois’ latest claims make up about 8% of the estimated 712,000 filed across the country last week.

There were 68,383 new unemployment claims filed during the week of Feb. 15 in Illinois.

* Lourdes Duarte, Andrew Schroedter at WGN…

There appears to be no end in sight to the avalanche of fraudulent unemployment filings in Illinois.

In the latest twist, the owner of a Northwest Side bridal shop called WGN Investigates after a stack of letters from the Illinois Department of Employment Security arrived at her business. The letters asked her to verify unemployment claims for 10 people.

But here’s the rub: They were sent to her address, but she didn’t recognize a single name. Not one person had worked at the bridal shop. There was even one in her mother’s name. […]

“The states are so overwhelmed, they haven’t figured out how to keep this from happening,” Terry Savage, a personal finance expert, said.

Savage has been tracking trends in fake unemployment claims since the start of the pandemic. Savage said scammers are constantly coming up with different ways to trick the system, including using random addresses to file claims.

*** UPDATE *** IDES…

The Illinois Department of Employment Security (IDES) announced today that the unemployment rate decreased -0.3 percentage point to 7.7 percent, while nonfarm payrolls were up +9,700 jobs in January, based on preliminary data provided by the U.S. Bureau of Labor Statistics (BLS) and released by IDES. The December monthly change in payrolls was revised from the preliminary report, from -2,500 to -9,200 jobs. The December unemployment rate was revised from the preliminary report, rising +0.4 percentage point to 8.0 percent.

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

In January, the three industry sectors with the largest over-the-month gains in employment were: Professional and Business Services (+11,500), Leisure and Hospitality (+5,100), and Other Services (+2,400). The industry sectors that reported the largest monthly payroll declines were: Financial Activities (-6,400), Construction (-3,200), and Government (-1,800).

“While the unemployment rate and job markets continue to be impacted by the ongoing effects of COVID-19, with vaccination rates continuing to increase, we are focused on building a strong recovery on the other side of this pandemic,” said Deputy Governor Dan Hynes. “This administration is fully committed to supporting individuals displaced from their jobs and ensuring small businesses and working families have the support they need to recover and grow in a post-pandemic economy.”

“Today’s data shows that Illinois is making steady progress in restoring jobs and building towards economic recovery,” said Sylvia Garcia, Acting Director of the Department of Commerce and Economic Opportunity (DCEO). “Under Governor Pritzker’s leadership, we have deployed over $1 billion to date in emergency relief programs to help some of the hardest hit businesses and communities in our state. The recent passage of the American Rescue Plan will further support our economic recovery with additional emergency relief to help build back key industries, support our workforce, and provide targeted investments for businesses and communities that need it most.”

The state’s unemployment rate was +1.4 percentage point higher than the national unemployment rate reported for January, which was 6.3 percent, down -0.4 percentage point from the previous month. The Illinois unemployment rate was up +4.2 percentage points from a year ago when it was 3.5 percent.

Compared to a year ago, nonfarm payroll employment decreased by -504,800 jobs, with losses across all major industries. The industry groups with the largest jobs decreases were: Leisure and Hospitality (-216,600), Government (-71,100) and Educational and Health Services (-65,400). Illinois nonfarm payrolls were down -8.2 percent over-the-year as compared to the nation’s -6.3 percent over-the-year decline in January.

The number of unemployed workers fell from the prior month, a -3.6 percent decrease to 473,000, and was up +114.0 percent over the same month for the prior year. The labor force was down -0.1 percent over-the-month and down -3.5 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.