Delaware sees more than 10,700 unemployment claims in a week, breaking 30-year record

Sarah Gamard
Delaware News Journal

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Unemployment insurance claims in Delaware have hit a 30-year record due to business closings and other economic impacts taken to slow the spread of the coronavirus.

In the First State, 10,790 people filed for unemployment during the week ending last Saturday, according to the Delaware Division of Unemployment Insurance.

For decades, that's more than Delaware has seen in a single month.

In the past 30 years, the state’s record number of unemployment claims within one month was about 9,800, according to Darryl Scott, director of the Division of Unemployment Insurance.

More than 8,000 Delawareans filed for unemployment in the 48 hours after the Labor Department announced it was expanding its benefits program two Tuesdays ago. Last week, Labor Secretary Cerron Cade expected the record to surely be "eclipsed" before the month is over.

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The state is now allowing people who are either temporarily out of work or forced to stay home due to the virus to be eligible for benefits. They can get between $20 and $400 per week depending on their income.

Governor John Carney gives an update on the coronavirus situation in Delaware Wednesday during a press conference outside the Carvel State Building in Wilmington.

It's unclear how many more Delawareans will file for unemployment in the coming weeks and months.

But it's safe to expect the number to keep climbing — especially after Gov. John Carney ordered all businesses deemed "nonessential" to close until mid-May or until the virus is no longer a public health threat.

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Across the U.S., St. Louis Federal Reserve President James Bullard predicted the unemployment rate to reach 30% in the coming months, a number higher than at the peak of the Great Depression.

There are around 480,000 workers in Delaware, Scott said. He said he could not estimate how many of those will be out of a job because of the pandemic.

"We don't know the duration of the business closures," Scott said. "Businesses may be able to hold on for two weeks or three weeks or four weeks. If it goes beyond that, then you have businesses that will be making difficult decisions to let employees go."

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The unemployment division is recruiting more staff from within the department to work on unemployment claims in order to handle the unprecedented wave of people who filed.

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"I don’t think we really have a choice," Cade said last week.

In Delaware, 10,790 people filed for unemployment during the week ending last Saturday, according to the Division of Unemployment Insurance.

The division has about 100 workers total, around 40 of whom typically handle claims. Some of the division workers have been forced to stay home to take care of their children during school closures, and the department is working on allowing staff to work remotely in case staffers have to self-quarantine or take care of a loved one, Scott said.

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The spike in claims is part of a national trend resulting from the virus's toll on the economy. The total number of people nationwide filing for unemployment benefits hit a record 3.28 million last week, according to the U.S. Department of Labor.

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Normal weekly claims in Delaware make up around one-twentieth of last week's total. Delaware averages around 600 claims per week, Scott said. The week before last, the state saw less than 400 claims.

Division workers are putting in overtime, including on weekends, to address the influx, Scott said.

A sign notifying customers of the temporary closure at Wolf's Elite Autos in Wilmington. All nonessential businesses in Delaware will be closed starting at 8 a.m. Tuesday, as ordered Sunday night by Gov. John Carney.

"We’re trying to keep up with the volume of increase," Scott said on Wednesday. "Our timeliness will improve as we add additional people to the team to help, but we’re playing a little bit (of) catchup. ... We are doing everything we can to get them processed and paid as quickly as possible."

This report includes information from USA Today.

Sarah Gamard covers politics and government for Delaware Online/The News Journal. You can reach her at (302) 324-2281 or sgamard@delawareonline.com. You can follow her on Twitter @SarahGamard.