Unemployment claims in South Dakota surpass 40,000

The number of South Dakotans applying for unemployment surpassed 40,000 last week.

There were a total of 5,131 initial weekly unemployment claims filed with the South Dakota Department of Labor and Regulation during the week of May 3-9, the department announced on Thursday. 

That's an increase from 3,929 initial weekly claims during the week of April 26-May 2, according to the department. Labor and Regulation Secretary Marcia Hultman said they anticipated an increase last week as residents continue to file for the new unemployment program for gig workers, self-employed workers and independent contractors, and a new 13-week extension began for residents receiving unemployment.

Hultman said the number of unemployment claims will likely continue to fluctuate each week as residents are called back to work, their circumstances change or they find new jobs.

Hultman asks residents receiving unemployment benefits to read all the documents they receive, enter their information correctly, check the status of their claim online and understand that not every unemployment claim is approved. Residents need to request a payment each week to receive an unemployment check and they shouldn't file a second unemployment claim if their initial claim is taking a while, she said.

The state has received more than 41,000 initial week claims for unemployment benefits since mid-March. However, 23,719 residents had continued unemployment claims after their first initial week during the week ending April 25, which represents the number of workers who have been unemployed for more than one week, according to the department.

Hultman noted that the department has training and education programs available to help South Dakotans who find themselves without a job to return to. 

"Many employers are starting to recall workers, but if you are permanently without employment due to the coronavirus outbreak, we can help," Hultman said.

Hultman noted that unemployment claims typically have a gradual increase during a recession, but eight weeks ago, "it was like a light switch was flipped and claims instantly, and to a degree never before seen, began to hit our system." Department staff has been working around the clock to process the claims while implementing three new unemployment programs, she said. The department's team working on unemployment claims has grown from 11 staff to 70 staff working hours equal to 95 staff, she said.

South Dakota's April unemployment rate is scheduled to be announced on May 21. The U.S. unemployment rate for April is 14.7%.

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Nationwide, 2.9 million people filed initial weekly unemployment claims last week, down from 3.2 million the previous week, according to the U.S. Department of Labor. A total of 36 million people have filed unemployment claims in the past two months. 

South Dakota paid $5.3 million in state unemployment benefits and $13.3 million in Federal Pandemic Unemployment Compensation benefits last week, according to the department. South Dakota's Unemployment Insurance Trust Fund balance was $104.3 million on May 10, according to the department. That's down from $128.8 million on March 24.

Statewide, job openings have decreased by 30.5% since a peak on March 19. There's been a 33.4% decline in job openings in the Sioux Falls area and a 29.7% decline in job openings in the Rapid City area since a peak in job openings on March 19, the state Bureau of Finance and Management announced on Monday.