Monday 13th May 2024

Unprecedented Increase in Unemployment Claims in Tennessee, Nation Because of COVID-19

shutterstock_502597858
shutterstock_502597858

The state of Tennessee and the nation experienced an unprecedented spike in new initial unemployment claims during the novel coronavirus pandemic, according to data by the United States Department of Labor Thursday.

The data showed for the week ending March 21, 2020, that 39,096 initial claims for unemployment insurance benefits were filed by Tennesseeans. The state received 2,702 new unemployment claims the week before. The latest figure represents a 36,394 increase in week-to-week claims.

Nationwide, Americans filed 3,283,000 new unemployment claims, an increase of 3,001,000 from the previous week’s revised national level.

The Tennessee Department of Labor and Workforce Development is currently processing unemployment claims as quickly as possible to determine eligibility and distribute benefit payments, according to a news release from the department.

TDLWD has added additional resources to help process the influx of new claims, including training 200 TDLWD employees to shift their job tasks to unemployment. Nearly one-third of TDLWD employees will soon work to provide customer service and process new claims while the department is expanding capacity and exploring other methods to increase its workforce.

The release said the maximum weekly unemployment benefit in Tennessee is $275 before the deduction of federal taxes. Claimants receive this benefit through a debit card or direct deposit to a bank account.

In Executive Order No. 15, Governor Bill Lee temporarily suspended Tennessee’s one-week waiting period to receive benefits, the release said. Typically, the state pays the first week of benefits after four consecutive weekly certifications. During the temporary suspension, the state will pay the first week of benefits as soon as an unemployment claim is approved.

The release said the state will release the latest new unemployment claims data each Thursday at 8:30 a.m. CT beginning Thursday, April 2.

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