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Layoffs push more workers into Florida’s overwhelmed unemployment system

<p>Roughly 2 million more Americans filed for unemployment for the week ending May 23, according to a report from the Department of Labor. In the last 10 weeks, roughly 40 million Americans—or 1 in 4 members of the labor force—have filed for unemployment. </p>

<p>[Pictured: A woman completes an unemployment form amid the COVID-19 pandemic.] </p>
OLIVIER DOULIERY/AFP via Getty Images
Roughly 2 million more Americans filed for unemployment for the week ending May 23, according to a report from the Department of Labor. In the last 10 weeks, roughly 40 million Americans—or 1 in 4 members of the labor force—have filed for unemployment.  [Pictured: A woman completes an unemployment form amid the COVID-19 pandemic.] 
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Even with Florida reopening its economy, layoffs continue to pile up as businesses realize that economic conditions are not improving as fast as expected.

Hospitality companies in South Florida laid off hundreds of workers in the last week of May. The Loews Miami Beach Hotel cut 723 workers on May 27, for example, while the nearby Royal Palm laid off 141 employees.

A variety of hotel, transportation and other service companies have imposed rolling furloughs dating back to mid-March and continuing into the final week of May, according to a list maintained by the Florida Department of Economic Opportunity.

As a result, the number of people filing new unemployment claims increased again in the week ending May 30, bucking a downward trend nationwide, the U.S. Labor Department reported Thursday.

A backlog of cases, snarled in the state’s overwhelmed unemployment system, also contributed to higher new claims. Months-old cases show up when they finally get through the system.

Florida saw its new claims jump by more than 31,000 from the previous week. Nationwide, filings again showed a slight overall decline, as the number of workers seeking benefits stood at 1,877,000, a decrease of 249,000 from the week ending May 23.

The 206,494 jobless workers seeking benefits in Florida was the second-highest in the country. Only California, with 230,000, was higher, the Labor Department reported.

“There are companies realizing things are not improving fast enough and they have to continue to cut and lay people off,” said Rebel Cole, a professor of finance at Florida Atlantic University’s College of Business.

The state’s unemployment benefits system is still trying to meet the overwhelming demands for service by well over 1 million idled workers.

Thousands of independent contractors, made eligible for federal payments under the coronavirus relief act, were rejected and had to reapply. The DEO’s lack of preparation for those claims added to wait times lasting several weeks.

After seemingly interminable waits for benefits, Sarah Kate Ross, a West Palm Beach music therapist who said she lost her job working with senior citizens more than two months ago, said she received her first unemployment payments this week after applying in late March. Money finally arrived after more than 200 phone calls.

Workers are still struggling with the benefits claims system despite efforts to improve access. But state payments including those funded by the U.S. government are making it through to eligible applicants who have spent days and weeks of trying to complete their online applications.

“These are antiquated systems,” Cole said.”It’s very difficult to scale up. They were processing 8,000 claims a week before [the lockdowns] happened. It’s virtually impossible to scale up a system like that in a very short period of time.”

On Friday, the department will post the national unemployment rate for May, which some economists expect to reach Great Depression levels of 20% despite the reopening of economies nationally.

The national jobless rate for April rose to 14.4% while Florida’s rate was 12.9%, up from 4.4% in March.

Moody’s Investors Service said in a report Wednesday that the pace of job losses is showing signs of slowing nationally. It forecast a labor market recovery that will “vary dramatically,” with some industries quickly taking back furloughed workers while others permanently eliminate jobs.

As of Wednesday, the state Department of Economic Opportunity said it crossed over the $4 billion mark in benefit payments to laid off and furloughed workers since March 15. The agency has paid 1,188,782 people who were judged eligible for benefits out of 1.8 million claims processed.

Survey of economists: Recession is here

Bankrate, the personal finance website, says it isn’t just the unemployment rate that is at historically high levels. The plight of millions more Americans isn’t captured by this labor force measure “between those who have dropped out of the workforce (not counted as jobless) and part-time workers who want full-time status.”

Bankrate also published a new economic indicator survey of private economists this week.

Responding to a multiple-choice questions on how they characterize the U.S. economy, four of five economists said it is in recession. Another 13% said it is a depression, and the remaining 8% called it “something else.”

The survey found the economists see the job market slowly healing, but still troubled with a 10% jobless rate a year from now.

More virtual job fairs

CareerSource Broward is preparing another virtual jobs fair for June 11.

Throughout May and June, the nonprofit job search and training agency is hosting biweekly online virtual job fairs to help connect job seekers with employers.

The latest fair occurred last week. They’re being held on Thursdays. After the June 11 fair, the final event of the month will be June 25. Registration and other information is available at https://careersourcebroward.com/virtualjobfair.

Recent fairs have attracted employers such as U.S. Customs and Border Protection, Census Bureau, American Medical Depot, Walmart, Walgreen’s, Domino’s, ScribeAmerica and Premier Aircraft Service. They were searching for customer service representatives, retail stock associates, cashiers, licensed insurance agents, nurses, accountants and electricians.