By Austin Rust-
In its latest job report, released Friday, April 17, the Ohio Department of Jobs & Family Services (ODJFS) shared seasonally-adjusted data on the unemployment rates in the U.S. and Ohio, which have increased steadily due to the coronavirus (COVID-19) outbreak. The unemployment rate in Ohio rose to 5.5% in March 2020, up from 4.1% in February, with roughly 314,000 workers now unemployed. The U.S. unemployment rate for March 2020 was 4.4%, up from 3.5% in February.
The number of unemployed workers in Ohio has increased by 75,000 in the past 12 months.
Further, the report states, Ohio’s nonagricultural wage and salary employment has decreased by 39,700 in the past month, according to the latest business establishment survey conducted by the U.S. Department of Labor (Bureau of Labor Statistics) in cooperation with the ODJFS.
Employment in goods-producing industries decreased by 2,800 in March 2020, with losses in construction (- 1,500), manufacturing (- 1,200), and mining and logging (- 100). In the private service-providing sector, 36,300 jobs were lost last month in leisure and hospitality (- 27,000), trade, transportation, and utilities (- 4,400), educational and health services (- 2,200), and other services (- 1,600), as well as financial activities (- 500), professional / business services (- 400), and information (- 200). 600 losses were reported in state and federal government employment.
In an article published April 17, Michael Shields, a researcher for the non-profit policy research institute Policy Matters Ohio, explains that the ODJFS’s job report for March 2020 “closed the books too early” to see the novel coronavirus (COVID-19)’s true toll on the state’s economy.
“March’s numbers lag weekly claims filings,” the article begins. “They were gathered during the week ended March 14, a day before Gov. DeWine closed restaurants and bars, and eight days before his stay-at-home order shuttered many more businesses.” The ODJFS reported (on April 16) that 158,678 Ohioans had filed initial unemployment claims in the week ended April 11, said Shields, in contrast to the 7,042 claims filed in the week ended March 14. Initial claims filed in the past 4 weeks (855,197) exceed the total filings for all of the past two years (2018 and 2019) combined.
In data tabulated by Policy Matters Ohio, Adams, Clinton, Logan, and Union Counties reported their highest initial unemployment compensation claims in the week ending April 11. In Adams County, these claims rose from 11 (as of March 14) to 390, with a total of 1, 284 claims filed in this four-week span (from March 14 to April 11). According to the most recent data, Adams County had an unemployment rate of 8.6% (with 900 residents unemployed) in February of 2020, down from an unemployment rate of 9.7% (with 1,000 residents unemployed) in January 2020. While Ohio’s stay-at-home order remains in effect, “the unemployment rate will understate the true scope of joblessness, because it only counts those actively seeking work,” Shields warns.
In his article, Shields explains the need for those who cannot work during the stay-at-home order to receive the unemployment compensation they have filed for in a timely manner.
“We want those workers at home to keep them and others safe,” he said. “But if ODJFS doesn’t move quickly to push unemployment comp to them, then even those who work from home could see their jobs at risk from a drop in consumer spending.”
“The DeWine administration and ODJFS must do everything they can to get unemployment compensation to these folks as quickly as possible,” Shields continued. “Gov. DeWine made the right decision to protect Ohioans by closing businesses, but now he must take action to alleviate the pain. Many of the restaurant and bar workers sent home by Gov. DeWine over a month ago won’t be able to get benefits for another month. Ohio law excludes workers if they are paid less than $269 per week. They’ll be covered now under temporary federal measures. ODJFS needs to move more quickly to get benefits to these and other newly eligible workers.”
“Supporting workers furloughed by the COVID-19 is necessary to prevent a deeper contraction,” Shields said in closing. “Some workers are continuing to work because they can do their jobs at home. But if policymakers don’t ensure laid-off workers can continue to pay the rent and buy groceries, the livelihoods of those who are still working could be at risk as well.”
In a statement published April 17, Andrew J. Kidd, Ph.D., an economist with The Buckeye Institute’s Economic Research Center, commented on the ODJFS’s March 2020 jobs report:
“The March jobs report marks the initial impacts COVID-19 has had on Ohio’s economy. With an unemployment rate of 5.5 percent and private sector job losses of 36,300, these figures will only get worse in the coming months. Already, more than 855,000 Ohioans have applied for unemployment, driven by mandatory business closures ordered by the state.”
“Job losses were experienced across nearly every sector of Ohio’s economy with the largest impact hitting the leisure and hospitality sector, which lost 27, 000 jobs in March due to the mandatory shutdown orders on restaurants and other social-distancing orders that have hurt Ohio’s tourism industry. These job losses are only the beginning. As economic impacts of COVID-19 spread to other businesses and industries, more job losses are expected.”
“While addressing the public health crisis remains top priority, policymakers need to outline the criteria they are using to guide their decisions on the ‘phased-in reopening of the state economy.’ By outlining the criteria they are using, policymakers will give businesses time to reopen safely and the public will have greater confidence in the reopening process.”
In a press release issued April 17, Southeastern Ohio Legal Services – a civil legal aid law firm and non-profit providing free civil legal help to low-income people – announced that its services related to unemployment compensation and other recent pressing needs have been expanded.
“Unemployment rates across Ohio have spiked in recent weeks due to the unexpected closure of many businesses caused by COVID-19,” a statement from Kristen Lewis, Advocacy Director for Southeastern Ohio Legal Services explains. “Many families impacted by these sudden job losses were unprepared for its economic impact. Some of those facing financial hardship due to COVID 19 have never before relied on government benefits, social services, or other safety nets for help paying their bills or feeding their families. Both the state and federal government have expanded programs to assist families who are facing unexpected financial impacts due to COVID-19.”
The press release continues with a sampling of information on the benefits available to Ohioans, including expanded weekly unemployment insurance benefits; IRS economic impact payments; cash/food assistance and Medicaid coverage; regional foodbanks, energy assistance programs to lower monthly utility bill costs or reconnect water, gas, or electric service for a reduced fee; and new housing protections for those facing potential eviction or foreclosure due to nonpayment.
To apply for legal assistance, contact Southeastern Ohio Legal Services at 1-833-288-2936 or visit www.seols.org/request-legal-services/.
