October 26, 2020
Unemployment claims spiking in Mass. as virus cases rise
Photo | Grant Welker
Lord & Taylor is holding a store closing sale at the Natick Mall.
By Grant Welker
Massachusetts is facing twin challenges this fall as both coronavirus cases and new unemployment claims rise.
The state had the unwelcome distinction of holding the country's worst unemployment rate in June and July, and in the week ending Oct. 17 had another negative: it was one of just 11 states to see new unemployment claims rise, second only to Texas in new claims recorded.
More than a month into the fall, new unemployment claims have risen in Massachusetts to the highest levels in four and a half months, with nearly 45,000 claims in the week ending Oct. 17. That's a fraction of the 181,000 recorded in one week in March, but is three times higher than in mid-summer.
The increase in cases has come across a range of industries, from retail, food and accommodation, and health and social assistance, which were hit hardest early on during the pandemic, to jobs that had been relatively spared, including manufacturing and education. In the case of manufacturing, new claims have tripled since August. For education, they're four times higher since then. For professional and technical services, they're five times higher.
The rising case numbers, reported by the U.S. Department of Labor and the Massachusetts Executive Office of Labor and Workforce Development, show the continuing economic pain from the pandemic, even as unemployment rates show improvement. Those rates — 9.6% in Massachusetts in September, the seventh worst nationally — don't include people who are unemployed and are no longer actively searching for work.
Unemployment rate data for local areas, including Central Massachusetts, is due to be released Wednesday.
In August, the unemployment rate in the Worcester area improved to 10.3%, down from 14.9% a month earlier. The Fitchburg, Leominster and Gardner area's rate was 12.6%. The city of Worcester's unemployment rate in August was 13.3%, and Fitchburg's was 15.5%, both among the state's worst.
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