The number of Tennessee workers filing new claims for unemployment fell last week to the lowest level in more than six months since the coronavirus pandemic sickened the economy.
The Tennessee Department of Labor and Workforce Development said Thursday that 9,802 Tennessee workers filed initial claims for jobless benefits last week, including another 456 newly laid-off workers in Hamilton County. Although that was more than triple the volume of such first-time claims prior to the pandemic, it was the lowest since the second week of March when the COVID-19 virus began shutting down much of the state's economy and ultimately pushed nearly one of every six workers out of a job, at least temporarily.
Total jobless claims paid did rise in Tennessee last week as the number of claims paid to both new and continuing unemployed persons rose from 228,053 in the week ended Sept. 19 to 266,028 last week. Tennessee is paying all of its jobless benefits with federal stimulus funds provided under the CARES Act.
Unemployed workers are getting less in weekly benefits since the $600 federal supplemental benefits expired in July and a temporary $44 billion payment from the Federal Emergency Management Agency (FEMA) ran out after giving $300 weekly benefits for all U.S. jobless claimants for another three weeks in August.
Some workers who lost their jobs when the business shutdowns began in March also could be ending their 26 weeks of jobless benefits in Tennessee. Those unemployed and still getting benefits are also being required this week for the first time since March to prove that they have applied for at least three other jobs during the week in order to keep their benefits.
Nationwide, total paid unemployment benefits plunged by more than half in August, according to the Commerce Department. That pulled down Americans' incomes for the month by 2.7% - a trend that, if it continues, could weaken economic growth.
"Unless employment growth picks up, or additional (government) aid is extended, consumer spending is at risk of slowing dramatically during the second phase of the recovery," said Gregory Daco, an economist at Oxford Economics.
Tennessee restored its job search requirement for unemployment claimants to continue their jobless benefits on Sunday and those getting benefits, in most instances, will have to show they made at least three job inquiries or interviews by the end of this week to get their jobless benefits continued.
Chris Cannon, a spokesman for the state Department of Labor and Workforce Development, said that even in the more restricted environment brought on by the pandemic the state "has not experienced a significant increase in calls regarding the reinstatement of the work search requirement.
"We have produced three step-by-step videos to help guide claimants through the process, including a video explaining how to set-up a Virtual Job Recruiter which will automatically send job leads to claimants," Cannon said.
On Thursday, Tennessee Career Centers listed 225,002 job openings across Tennessee.
While some companies are hiring, others are still laying off workers, however.
Disney said this week that it's cutting 28,000 jobs in California and Florida, a consequence of the damage it's suffered from the viral outbreak and the shutdowns and attendance limits that were imposed in response. Allstate said it will shed 3,800 jobs - 7.5% of its workforce.
And U.S. airlines on Thursday began furloughing more than 32,000 employees, among the many who will likely lose jobs this month as federal aid to the airlines expires. The airlines were barred from cutting jobs as long as they were receiving government assistance. American and United had said they would begin the 32,000 furloughs after lawmakers and the White House failed to agree on a pandemic relief package that would extend the aid to airlines.
On Friday, the government will issue the jobs report for September, the final such report before Election Day, Nov. 3. Analysts have forecast that it will show a gain of 850,000, which would mark the third straight monthly slowdown in job growth. It would mean that the economy has regained just over half the 22 million jobs that were lost to the pandemic.
The unemployment rate is expected to decline from 8.4% to 8.2%, according to data provider FactSet.
Contact Dave Flessner at dflessner@timesfreepress.com. The Associated Press contributed to this report