Initial jobless claims finally tapering off

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  • Unemployment claims in Oklahoma
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OKLAHOMA CITY – Unemployment claims in Oklahoma have finally registered a significant decline.

Initial jobless claims dipped into the four-figure range for the first time in four months, the Oklahoma Employment Security Commission reported. The

number of unadjusted initial claims filed during the week that ended July 4 totaled 7,562, less than half the previous week’s revised level of 18,405.

Although unemployment claims have slowed, they haven’t ceased.

Muskogee’s Georgia-Pacific says the coronavirus has forced its first ever layoffs at the plant. A spokesperson for the company said 80 production line employees, one-tenth of its workers, were laid off July 10; the furloughs will be temporary and short-term, according to the spokesperson.

Production at the Muskogee plant is “significantly focused on professional products you see in commercial settings, such as airports, hotels, sporting arenas and schools,” the spokesperson said.

The Georgia-Pacific plant employs 800 workers who make tissues, paper towels and napkins. It is Muskogee’s largest employer.

UNEMPLOYMENT CLAIMS MULTIPLIED OVERNIGHT

Initial claims for unemployment benefits from Oklahomans laid off from their jobs skyrocketed from 1,836 on March 14 to an adjusted one- week number of 21,926 for the week that ended March 21. On April 4 the OESC logged a one-week record of 60,534 unemployment claims.

Prior to the tidal wave of jobless claims stemming from the coronavirus pandemic, the previous highest week for initial claims for unemployment benefits occurred 29 years ago: 9,778 claims for the week ending Jan.

12, 1991, OESC ledgers extending back to 1987 reflect.

For the week that ended on July 4, the less volatile four-week “moving average” of initial claims was 42,340, compared to the previous week’s revised average of 59,831.

Also for the week ending July 4, the advance unadjusted number of continued claims in Oklahoma totaled 123,267, a decrease of 42,031 from the previous week’s revised level of 165,298. For the same file week, the four-week moving average was 161,029.

The OESC has “mitigated” more than 64,000 fraudulent unemployment claims since March 1, agency spokesman Anthony Triana said Tuesday.

Nationally, total nonfarm payroll employment rose by 4.8 million in June and the unemployment rate last month declined to 11.1%, the U.S. Bureau of Labor Statistics reported on July 2. In comparison, the advance seasonally adjusted insured unem- ployment rate was 12.4% for the week ending June 27.

$2B+ IN BENEFITS PAID

The OESC reports it has paid out over $2.1 billion in traditional unemployment benefits and federal economic stimulus benefits since March.

Nevertheless, despite the tsunami of claims for jobless benefits, the state’s Unemployment Insurance Trust Fund is in robust condition.

The trust fund balance on May 24 was a record $1.484 billion, the highest the balance has been in at least 22 years, and on July 3 the UI Trust Fund balance was reported to be $1.3 billion. In comparison, the trust fund balance on June 30, 2019, was $1.137 billion.

The highest monthly amount paid out during the 2007-2009 recession was $58.3 million in June 2009, OESC records show.

The UI trust fund has been replenished with federal aid and with taxes that continue to be collected from employers. According to the OESC, the $1.3 billion balance on July 3 included $575 million collected from businesses, and the other $725 million came from the U.S. government.