Impact of Derecho Showing Up In Unemployment Numbers

Statewide Iowa — The impact of the derecho is showing up in the unemployment numbers.

The number of continuing unemployment claims increased by 1,806 last week and Iowa Workforce Development says those numbers include claims filed the previous week following the massive wind storm. Some areas were without power for more than a week and the businesses there could not operate.

The number of initial claims in Iowa, filed between Sunday, Aug. 16, and Saturday, Aug. 22, was 6,954. There were 6,201 initial claims by individuals who work and live in Iowa, and 753 claims by individuals who work in Iowa and live in another state.  The number of continuing weekly unemployment claims for Aug. 16-22 was 84,248, an increase of 1,806 from the previous week.

Linn County, home to Cedar Rapids the state’s second-largest city, had nearly 1,668 new claims for unemployment following the derecho — compared to around 400 the week before it hit.

Unemployment insurance benefit payments totaled $23,295,591.51 for the week of Aug. 16-22. The following industries had the most claims:
Manufacturing (1,897)
Industry Not Available – Self-employed, Independent Contractors, etc. (849)
Health Care & Social Assistance (682)
Construction (439)
Accommodation & Food Services (409)

On Aug. 14, 2020, FEMA approved Iowa’s application to participate in the “Lost Wages Assistance” program. Iowans whose unemployment is the result of the pandemic, and who are eligible for at least $100 in benefits  each week, will qualify for an additional $300 in weekly benefits retroactive to the week ending Aug. 1. FEMA and USDOL continue to issue guidance, and IWD says they will continue developing the implementation process required for this program. IWD will update its website as additional information becomes available.

Individuals who have exhausted the additional 13 weeks of PEUC benefits may be eligible for State Extended Benefits (EB) announced in June.  Claimants should continue to file weekly claims so that their claims can be reviewed to determine eligibility for State EB.  These benefits may provide eligible claimants up to an additional 13 weeks of unemployment benefits.  Not everyone who qualified for PEUC will be eligible for State EB.  More information is available on the Iowa Workforce Development website.

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