The CARES Act and Claimants on the Benefits Cliff in Oregon

The CARES Act signed into law in March created new programs to expand Unemployment Insurance coverage during the pandemic. Two of these programs -- Pandemic Unemployment Assistance (PUA), primarily for the self-employed, and the Pandemic Emergency Unemployment Compensation (PEUC) 13-week benefit extension -- are currently scheduled to expire on December 26, 2020. While most PEUC benefits recipients could roll into the existing Extended Benefits program, those receiving PUA benefits have no other unemployment benefit options when that program ends. 

While negotiations are underway to extend or replace CARES Act programs into 2021, many are wondering how many Oregonians could be impacted by the loss or interruption of these benefits. We estimate that there will be 72,000 people receiving benefits from the Oregon Employment Department under these programs as of December 26. That’s about 3.4% of the entire state’s workforce when the pandemic began. 

Women are slightly more likely to be affected by the loss or interruption of these benefits, as well as workers ages 65 and older. People facing the potential loss of this financial support in Josephine, Curry, Coos, Lincoln, and Jackson counties are expected to be the hardest hit by share of overall labor force. 

More information about the characteristics of unemployment benefit claimants is available at https://www.qualityinfo.org/covid-19.

Initial Claims and Unemployment Benefits in Oregon

During the week of April 26 to May 2, the Oregon Employment Department received 19,600 initial claims for unemployment benefits. The agency has received more than 381,800 initial claims since COVID-19 businesses closures began in mid-March.

Initial Claims
The Employment Department has detailed information of about 30,300 of the 45,100 initial claims processed during the week of April 26 to May 2. The greatest number of initial claims continued to come from the accommodation and food services sector, with 64,700 initial claims filed in the industry since March 15. Other sectors with the largest initial claims totals since March 15 include health care and social assistance (39,700) and retail trade (33,100).

Every sector of the economy has seen increased claims activity. Accommodation and food services’ share of total claims is declining, although the industry still accounts for 28 percent of initial claims since mid-March. Shares of total initial claims are increasing in retail trade, manufacturing, administrative and waste services, and wholesale trade.

Multnomah (6,500), Washington (3,900), and Clackamas (2,900) counties had the largest number of claims during the week of April 26 to May 2. More initial claims data by industry and area can be found on the QualityInfo.org COVID-19 page.

Helping Oregonians
Four out of five (83%) initial claims for regular unemployment benefits received between March 15 and May 2 have been processed. For each of the past four weeks, more claims have been processed than received in Oregon.

The Employment Department has also processed more than 10,000 applications for Pandemic Unemployment Assistance benefits for the self-employed, contract, gig, and other workers not eligible for regular unemployment benefits.

The agency continues expanding its ability to process more claims for unemployment benefits. There are currently 635 employees working unemployment claims, with more hiring underway and a new contact center opening next week. Claims processing continues seven days per week.

In addition to more staffing, the Employment Department also continues working to implement more unemployment benefit programs. Programming and testing is underway for the Pandemic Emergency Unemployment Compensation (PEUC) program. This provides up to 13 weeks of extended unemployment benefits for those who have run out of benefits and remain out of work due to COVID-19 business closures. Program eligibility and more details for this and other programs are available in the CARES Act section of the agency’s COVID-19 page.

Read the original press release here.