COVID-19

Not everybody out of work due to COVID-19 will be counted as unemployed

Mitchell Hartman Apr 16, 2020
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City employees hand out unemployment benefits applications to people in their cars on April 8 in Hialeah, Florida. Joe Raedle/Getty Images
COVID-19

Not everybody out of work due to COVID-19 will be counted as unemployed

Mitchell Hartman Apr 16, 2020
City employees hand out unemployment benefits applications to people in their cars on April 8 in Hialeah, Florida. Joe Raedle/Getty Images
HTML EMBED:
COPY

The 5.2 million new claims for state unemployment benefits released Thursday morning reflect a massive amount of job loss for American households in a really short period of time. Just four weeks ago, 22 million more people were working. Now, one in seven Americans who were employed before the pandemic have lost their jobs due to COVID-19.

These weekly initial jobless claim numbers, reported by the states to the Labor Department, don’t tell the whole unemployment story — they’re likely understating the true level of unemployment.

Some people just aren’t applying for unemployment benefits. Take Darius Brett Windley.

“[On] February 5, I started tending bar and waiting tables at a little family restaurant about 11 miles south of where I’m at,” he said.

That’s northeastern Nebraska, where Windley and his wife operate a small farm and produce stand. Working at the restaurant was going to provide extra income — until it shut down in mid-March. Windley used to be a union ironworker, and he’s been on unemployment before.

“It was such a hassle,” he said. “I would rather take a beating than try and go through unemployment again, on a system that’s broken down and just not working.” He won’t be counted among the unemployed.

Immigrants without authorization to work aren’t eligible for unemployment benefits. Yannan Collins, 28, is originally from China and now lives in Texas; her application for a green-card is pending. She was working for an HR firm as an independent contractor, but the firm shut down.  

“I don’t have income, and I can’t apply for unemployment,” she said.

Some people aren’t working or earning income, but they haven’t lost their jobs. Nate Edwards, a manager for a national rental car company in St. Louis, was furloughed in early April along with many of his co-workers. His wife is still working as a corporate attorney. 

“We have enough saved up, [and] we can cover our expenses for the next couple months,” Edwards said. He won’t apply for unemployment unless his furlough turns into a permanent layoff.

COVID-19 Economy FAQs

How many people are flying? Has traveled picked up?

Flying is starting to recover to levels the airline industry hasn’t seen in months. The Transportation Security Administration announced on Oct. 19 that it’s screened more than 1 million passengers on a single day — its highest number since March 17. The TSA also screened more than 6 million passengers last week, its highest weekly volume since the start of the COVID-19 pandemic. While travel is improving, the TSA announcement comes amid warnings that the U.S. is in the third wave of the coronavirus. There are now more than 8 million cases in the country, with more than 219,000 deaths.

How are Americans feeling about their finances?

Nearly half of all Americans would have trouble paying for an unexpected $250 bill and a third of Americans have less income than before the pandemic, according to the latest results of our Marketplace-Edison Poll. Also, 6 in 10 Americans think that race has at least some impact on an individual’s long-term financial situation, but Black respondents are much more likely to think that race has a big impact on a person’s long-term financial situation than white or Hispanic/Latinx respondents.

Find the rest of the poll results here, which cover how Americans have been faring financially about six months into the pandemic, race and equity within the workplace and some of the key issues Trump and Biden supporters are concerned about.

What’s going to happen to retailers, especially with the holiday shopping season approaching?

A report out recently from the accounting consultancy BDO USA said 29 big retailers filed for bankruptcy protection through August. And if bankruptcies continue at that pace, the number could rival the bankruptcies of 2010, after the Great Recession. For retailers, the last three months of this year will be even more critical than usual for their survival as they look for some hope around the holidays.

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