Scottsdale Progress - 05-31-2020

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SCOTTSDALE PROGRESS | WWW.SCOTTSDALE.ORG | MAY 31, 2020

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Nearly 24K jobless claims �iled in Scottsdale PROGRESS NEWS STAFF

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t least 23,676 Scottsdale residents have lost their jobs or been furloughed since social distancing guidelines and business closures were implemented to control the spread of COVID-19, according to tracking maps from Maricopa Association of Governments.

MAG released the map May 21 – the same day the state reported that unemployment in Arizona spiked to 12.7 percent and the same day that state House Republicans turned back an effort to increase Arizona’s unemployment compensation, the second lowest in the country.

The MAG data show 85251 – with 4,600 claims – as the hardest hit in the city and among the most devastated in Maricopa County. ZIP codes 85254, with 3,750 claims, and 85257 also have seen a high number of claims, with 3,750 and 3,234, respectively.

The data cover claims �iled between March 14 and May 14, and with new reports of new claims being issued by the state in the last two weeks, the Scottsdale numbers likely have increased.

Another 24,723 Arizonans �iled �irsttime claims for unemployment bene�its in the week end May 23.

The addition brings the total since the COVID-19 outbreak and the limits imposed by Gov. Doug Ducey on the Arizona economy and travel to 601.518 – 17 percent of the total state workforce.

Still in question is whether the numbers actually re�lect all those who are out of work.

Brett Bezio, spokesman for the Department of Economic Security, said throughout this month his agency has seen an average of 7,200 calls answered each day.

But Bezio acknowledged to Capitol Media Services that DES is getting anywhere from 70,000 to 12,000 calls per day, whether from those seeking to apply or

Gov. Doug Ducey said some of the federal pandemic relief money Arizona has received may be needed to replenish the fund for unemployment compensation.

(Capitol Media Services)

those seeking to renew bene�its. Put another way, the agency is able to get to only one call out of 10 that is coming in.

Bezio said efforts are underway to improve the situation.

“We have expanded our unemployment insurance team substantially to nearly 700,’’ he said. “We will continue to grow our team to ensure we can provide applicants with the assistance they need.’’

And, in a bid to deal with the crush, DES opened its call center this past Sunday and Monday, even with the latter being a holiday.

Meanwhile, the agency is still playing catch-up with the Pandemic Unemployment Assistance program.

That is the special $600-a-week coverage available for those who are ineligible for regular state jobless bene�its, including the self-employed and workers in the “gig’’

environment like Uber drivers.

MAG’s maps shows there are no areas in the state has escaped a rising unemployment claims, but that Maricopa County recorded the biggest numbers of job losses with two thirds of all unemployment claims �iled here.

Other areas with traditionally stable employment numbers also were affected, MAG said.

“We went from record low-unemployment levels to record increases in weekly unemployment claims,” said Queen Creek Mayor Gail Barney, chair of MAG’s Economic Development Committee. “The impact of the pandemic on our workforce is staggering.”

In releasing the data, MAG said, “While the death toll continues to rise, the preventative measures in place to minimize that death toll have had an enormous impact on the national and local economies. One measure of that impact has been job loss.

“From record low unemployment levels early in 2020 to record increases in weekly unemployment claims, the impact of the pandemic on employment �igures is staggering.”

Other hard-hit areas include 85283 in Tempe, with 4,031 claims, and 85282, just south of that, had 5,229 claims.

Chandler ZIP codes 85224 had 4,080 claims while adjacent 85225 had 6,121.

“These maps can be used by employers and policymakers to understand where there are large numbers of people looking for work,” said Mesa Councilman David Luna and vice chairman of the EDC. “We can use that knowledge to target resources to the local economies that need help the most.”

The biggest lost, not surprisingly, is in the leisure and hospitality industry. That includes the bars and restaurants that were ordered shuttered except for take-out.

Still, for the �irst time in years, the situation actually is better than the rest of the

county, with the United States posting a seasonally adjusted unemployment rate of 14.7 percent.

Wallethub.com, a personal �inance website, said Arizona ranks 23 among the 50 states for sustaining the worst unemployment impact during the third week of May and 44th overall in the country.

But wallethub also said unemployment in Arizona increased by 550 percent this year over last and 1322 percent since March 1.

MAG released its maps at the same time House Democrats were attempting to use procedural maneuvers to get a vote on measures to increase bene�its and allow people to get unemployment payments if they leave their jobs due to unsafe working conditions.

Rep. Kelli Butler, D-Paradise Valley proposed amendments about unemployment insurance to three bills set for consideration by the House Committee on Health and Human Services.

But because they were unrelated to the underlying Senate-passed bills on breast implants, pelvic exams and outpatient treatment centers for behavioral health, the amendments would have wiped out the underlying bills.

Butler and Rep. Andres Cano, D-Tucson, acknowledged the importance of those bills.

But they argued that, given the COVID-19 pandemic and the resultant �lood of people seeking unemployment bene�its – 577,000 since the virus hit and the governor ordered businesses shut down – the problems of people out of work took higher priority.

House Republicans made their own procedural motions to prevent the amendments from even being offered.

The Legislature �inally pulled the plug on its session last week, but may be convened in a special session by the governor later this year to address pandemic-related issues.