Six months: 1 in 4 Iowa workers file jobless claims

While the employment crisis persists, Congress is seemingly deadlocked over the question of extending enhanced unemployment benefits — which expire this week.

The week ending July 25th marked the 26th week of the COVID-19 Recession. In that half year, 420,702 working Iowans (including another 7,441 last week) have filed for unemployment insurance. This is a staggering number. It represents almost one-quarter of the February 2020 labor force. And it is nearly four times the number of claims (107,344) filed by Iowans over the first six months of the Great Recession.

The largest differences between the last recession and this one have come from the eighth week on. The last 19 weeks represent 403,697 of the total increase in this recession, all of those weeks substantially higher than the comparable period in the Great Recession.

While the employment crisis persists, Congress is seemingly deadlocked over the question of extending enhanced unemployment benefits — which expire this week. The HEROES Act, passed by the House in May, would extend the $600/week PUC program through January 31, 2021. The HEALS Act pushed by Senate Republicans would slash that benefit to $200 through the end of September, and then cap the total UI benefit at 70 percent of lost wages. If this passes, weekly benefits for Iowa’s unemployed would drop from an average of $927 per week to $527 per week — a cut of 43 percent. To add insult to injury, the Senate plan also neglects to extend the federal moratorium on evictions.

This is a perilous moment. With new unemployment claims holding steady at more than double the weekly claims of the Great Recession, and economic recovery faltering in the face of surging COVID cases, we need to protect Iowa’s working families from both income insecurity and housing insecurity.

Colin Gordon is senior research consultant for the nonpartisan Iowa Policy Project. He is a professor of history at the University of Iowa.