In the last week, another 11,125 Iowans applied for unemployment insurance. That brings the total, in the 24 weeks since the COVID-19 recession began in February, to over 400,000 — or almost a quarter of the entire Iowa labor force. Of that, nearly 388,000 (387,847) are the change over the last 17 weeks, in which these numbers first spiked.
Let’s put that in perspective: 400,000 unemployment claims is over four times the number filed over the first 24 weeks of the Great Recession. Over that span, from December 2007 to May 2008, weekly claims peaked at 13,542 in late December 2007 — the only week in the Great Recession when Iowa unemployment claims topped the 10,000 mark. In the last 24 weeks, weekly claims have exceeded 10,000 eleven times. Indeed, the average since early February is almost 17,000 new weekly claims — 3,000 higher than the worst week of the Great Recession.
As the crisis persists, the safety net for Iowa’s unemployed is about to unravel. On July 25, the federal Pandemic Unemployment Compensation (PUC) program — the $600 weekly boost to regular state benefits — comes to an end. For the nearly 150,000 Iowans currently receiving unemployment benefits, the checks will be a lot smaller: For an unemployed worker who had been working full-time at minimum wage, the weekly check will shrink from over $800 to barely $200. Once the applications of the 11,125 Iowans who filed for unemployment last week are processed, the PUC will be a distant memory — and their benefits will replace barely half of their lost wages.