Maine unemployment declares skyrocket to record 21500 in 1 week – Press Herald

26March 2020

Almost 21,500 Mainers filed for welfare recently, by far the greatest weekly overall on record.

Financial disturbance from the coronavirus pandemic has shuttered organizations throughout the state. Maine’s admired food, beverage and service markets have been especially hard-hit as dining establishments and bars have actually been forced to close or provide just takeout and shipment options.

The weekly variety of new claims is almost quadruple that of the very first week in January 2009, in the depths of the Great Economic crisis, when about 5,600 Mainers declared welfare.

The closest comparison for single-week claims occurred during the 1991 state government shutdown, when 11,800 federal government employees were momentarily laid off.

The flood of claims has extended the state’s unemployment office to its limits, causing some applicants to wait hours on the phone or days for an e-mail action.

Nationwide, almost 3.3 million workers filed for unemployment benefits recently, the highest seasonally adjusted overall on record, according to the U.S. Department of Labor. The previous high remained in October 1982, when about 695,000 workers submitted claims.

“This is a quite unmatched recession we’re going into,” said Sarah Austin, a policy analyst for the progressive think tank Maine Center for Economic Policy. “Generally this occurs over a series of months; this is happening over a series of weeks.”

More than one-third of claims submitted in Maine recently– about 8,000– were from the accommodation and food service markets, according to the Maine Department of Labor. Healthcare and social assistance workers filed nearly 3,600 claims. There were 1,131 claims from producers and about 1,100 in retail trade.

Even prior to Gov. Janet Mills purchased restaurants and bars to close their dining rooms to the public last Wednesday to cut the spread of coronavirus, numerous facilities had actually restricted service or shuttered altogether.

Zoe Borenstein, 23, was a line cook at The Honey Paw, a popular Asian dining establishment in Portland, for practically a year up until she was all of a sudden laid off with the rest of its per hour personnel last Monday.

She got approved for unemployment benefits last week, but on Wednesday still wasn’t sure how much she was eligible to receive or when her first check would arrive.

“I do not understand just how much longer I can go without having any source of income,” Borenstein said.

Cooks at Honey Paw were making $13 to $15 an hour, she included, just enough to cover daily expenses.

“It’s not enough to put away for savings at all, even if you are truly, really proficient at budgeting, which I try to be,” Borenstein said. “It is sort of the same for everyone. That’s the thing that is helping me at least, knowing we are all in the very same boat.”

Zoe Borenstein, laid off from Honey Paw, sits outside her Portland house. She stated,”I do not understand just how much longer I can go without having any income source.” Ben McCanna/Staff Photographer

Welfare change a few of an employee’s lost income. The amount for each recipient is calculated based on incomes made throughout a set duration before the job loss, with the average weekly payment having to do with $350 in Maine. Individuals can receive advantages for up to 26 weeks.

A $2 trillion economic recovery bill gone by the U.S. Senate on Wednesday, and expected to receive approval Friday in the U.S. Legislature, consists of measures to extend the optimum duration of welfare and increase payments by as much as $600 a week. It also would supply benefits to those generally ineligible, such as the self-employed and agreement workers.

Caroline Richter, 28, was thrilled for her task as bar manager at Leeward, a brand-new Italian dining establishment on Free Street in Portland. The dining establishment closed last week, after being open just a couple of days.

The monetary tension is hard, but so is the frustration of dealing with a new venture just to have the carpet pulled out from below it.

“We had all this momentum going and after that simply had to shut down,” Richter stated.

Her fiancé, a manager at a different Portland dining establishment, is still getting an income, and Richter is getting welfare. The couple was saving for a house, so they have a little emergency fund, however it is uncertain for how long.

“We have some cash to tide us over, but it simply depends how long it lasts,” Richter said. “If it is a month we’ll be fine, however not three months.”

The global economic crisis brought on by coronavirus also has actually affected white-collar workers in less apparent ways.

The Council on International Educational Exchange, or CIEE, a Portland-based nonprofit group that arranges study-abroad programs for U.S. and global students, revealed a “considerable reduction in force” on Wednesday.

The business’s revenue-generating programs were suspended in a matter of days as nations across the globe implemented full-scale lockdowns and travel limitations. It needed to assist thousands of students go back to the U.S. immediately, the business stated in a statement.

The layoffs “will affect households and neighborhoods around the world, but a lot of especially in Portland, Maine, the site of our worldwide headquarters,” it said.

A company agent did not immediately react to questions about the size of its labor force or how many workers were released. CIEE has up to 500 workers, according to Maine Department of Labor.

American Roots, a little clothing producer in Portland, saw half of its annual sales vanish in 36 hours, said owner Ben Waxman. He needed to lay off 80 percent of his labor force– about 25 people– while the business scrambles to retool and rehire workers to make personal protective devices.

“We are all-hands-on-deck to determine how to get our workforce back and work on how we can deal with this crisis,” Waxman said. “This is a test of a generation.”

The state’s joblessness workplace was unprepared for the avalanche of claims, with just 14 professionals to answer concerns and process applications. Its phone lines are just open from 8 a.m. to 12:15 p.m., and there is now a weeklong stockpile of emails from individuals desperate for help.

Krister Rollins, 63, was laid off from his job as head of the ski school at Mt. Abram in Greenwood when the resort shut down early for the season on March 15.

Rollins stated he applied for welfare online Tuesday, however paused the application due to the fact that he was unsure about a concern. When he returned to complete it, he forgot his newly made password and was locked out of the system after 2 shots.

“I get that it is my fault that I got locked out, that I didn’t keep in mind the password, but two times is pretty quick,” Rollins stated.

Unable to reset the password online, Rollins called the department’s customer service and sent an email. He has yet to hear back.

“I have actually been calling that contact number continuously for a week and never ever survived, not once,” Rollins said. “I get that they are busy, however it is discouraging, that’s all.”

Maine Labor Commisisoner Laura Fortman said her personnel is working to stay up to date with the thousands of claims pouring in, but even with some fast additions to bring the workplace’s total staff approximately 30 individuals this week, the department is still capturing up.

“I ‘d state the volume and need has actually gone beyond the staffing capacity” for a department used to dealing with a 3.1 percent joblessness rate, Fortman stated. Maine had just 634 unemployment claims filed in the week ending March 14.

Fortman prompted individuals to try and file online at unemployment if they are able, and to contact staff at regional Career Centers for responses to common questions about unemployment. The statewide Career Center hotline is 888-457-8883.

The department has actually added a note to its site stating workers who lost their jobs since of the coronavirus break out in the previous week but were unable able to submit a claim still will have their claims accepted next week, too.

The leading grievances for individuals attempting to file are getting locked out of their accounts or being unable to reach somebody on the phone at the department, Fortman stated. Regional web speeds might also trigger lag for some users, although the state’s online website has been stable, she stated.

More than $4.5 million was paid in benefits between Monday and Tuesday, Fortman said.

The variety of people out of work due to the fact that of the health emergency situation is most likely bigger than even the staggering variety of claims submitted last week. Those claims account for roughly 3 percent of the state’s 640,000-strong labor force.

Some workers might have waited to file, had their application held up or been uncertain if they certified. At least 67,000 Mainers are self-employed, and are not presently eligible for unemployment insurance, even if their earnings has evaporated.

Jamien Hill, 35, made about $500 a week driving for ride-share companies in the Portland area full-time for more than a year. She stopped 2 weeks earlier when cases of COVID-19, the respiratory disease brought on by coronavirus, started accelerating in Maine.

“I’m not frightened to get sick, but I do not want to spread it to anybody,” Hill said.

She’s waiting on a relief bill to make its method through Capitol Hill prior to applying for unemployment, but is not sure just how much she’ll get approved for and what sort of advantages to expect. Today, she and her boyfriend are living off of income from his task as an independent computer developer.

“It depends upon what you made prior to this taken place– I don’t understand how they balance that out,” Hill said. “Hopefully I’ll have the ability to survive.”

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