SALT LAKE CITY — The number of Utahns seeking jobless benefits fell 18% over the past week, a new report shows.

Utah Department of Workforce Services data indicates the total number of new claims filed for unemployment aid hit 3,519 for the week of Nov. 22 through Nov. 28. Additionally, there were 27,213 continued claims filed during the same week.

A week earlier, 4,479 people filed new jobless claims while another 28,002 sought continuing help, the state report shows.

"While we did see a marked decrease in the number of new unemployment claims for the week, this may be artificially low as a result of the Thanksgiving holiday," said Unemployment Insurance Division Director Kevin Burt. "The need for unemployment benefits remains, unfortunately the additional benefits provided by the CARES Act are set to expire on Dec. 26, including the pandemic unemployment for the self-employed and the 13-week extended unemployment benefits."

The report says the number of people who have not requested a benefit for two straight weeks as of Nov. 21 dropped to 2,567, nearly 600 fewer than the previous week.

While the new data shows a significant decrease in first-time claims, Burt said the numbers may be "an outlier."

"Last week was the Thanksgiving week, so we believe the number of new claims for last week is artificially low," he said Thursday from the state Capitol. "We do expect the volume of claims to continue as we continue to see disruption due to the COVID-19 and the pandemic, as well as the seasonal workload that comes to unemployment insurance every year as there are some jobs — due to the winter climate — that are unavailable and individuals seasonally have applied for unemployment insurance during the month of November, December and January every year for some time."

Burt also reiterated the impending expiration of federal monies approved by Congress earlier this year to help support individuals sidelined due to the pandemic. He noted that funding from the Coronavirus Aid, Relief, and Economic Security Act is set to expire on Dec. 26 and that people who find themselves out of work can apply for other safety net programs.

"We have the (Supplemental Nutrition Assistance Program) benefit for food assistance, we have medical assistance (and) rent assistance is available now, but it certainly is being depleted and tested with the pandemic impact of employment," he said. "These other safety net programs may be an option for you to be able to offset some of those losses with the loss of unemployment."

Individuals in need of rent assistance can call 211, he said, while information on food assistance, medical and heat assistance are available at jobs.utah.gov.

Economically, Utah has fared better than many states in the wake of the COVID-19 outbreak, said Ben Hart, deputy director at the Utah Governor's Office of Economic Development. However, the state is still being heavily impacted by the pandemic.

"The coronavirus pandemic and subsequent economic downturn has been difficult and challenging on many fronts," he said. "This coronavirus-caused economic event will perhaps go down as the most industry specific downturn in the history of our country. Its impact has been almost surgical is it has ravaged certain industries."

Among the worst affected being the restaurant and retail industry, along with leisure and hospitality and tourism, he said. The state has allocated unspent CARES Act funds to help local businesses impacted by the pandemic, he said.

"We have developed more than 10 programs targeted to specific use toward Utah businesses and those industries that are struggling," Hart said. "We've received applications from almost 8,000 businesses and approved more than 1,500 grant applications."

Looking ahead, he said the state will keep working to develop programs to help local businesses weather the pandemic crisis.

"We realize that we are far from being out of the woods on both the health and economic response required during and after the pandemic," Hart said. "The state will continue to do everything possible to support businesses, especially small businesses which represent 99% of the top companies during this difficult time."

Nationally, the number of Americans applying for unemployment benefits fell as the nation celebrated Thanksgiving last week to a still-high 712,000 — the latest sign that the U.S. economy and job market remain under stress from the intensified viral outbreak.

Thursday's report from the Labor Department said that initial claims for jobless aid dropped from 787,000 the week before. Before the virus paralyzed the economy in March, the number of people applying for unemployment benefits each week had typically amounted to roughly 225,000. The chronically high pace of applications shows that nearly nine months after the pandemic struck, many employers are still slashing jobs.

Related

New unemployment claims in Utah continue to drop, but end of federally funded help looming

New Utah unemployment claims declined slightly last week, but state officials warn a post-Christmas end is near for federally funded benefits put in place earlier this year as a result of the ongoing coronavirus pandemic.

"Thanksgiving seasonals likely explain the drop'' in jobless claims last week, Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in a research note. "Expect a rebound next week.''

Meanwhile, the U.S. services sector, where most Americans work, registered its sixth consecutive month of expansion in November.

The Institute for Supply Management reported Thursday that its index of services activity declined slightly to a reading of 55.9 last month, from a reading of 56.6 in October. Readings above 50 represent expansion in services industries such as restaurants and bars, retail stores and delivery companies.

Although broadly viewed as a good report, it was the second straight month that growth in the service sector slowed. That could be worrisome as COVID-19 infections rise and the weather turns colder.

Many restaurants, whose indoor capacities have been eliminated or reduced greatly, could be facing a do-or-die winter as fewer people take tables at the hastily assembled outdoor dining areas that popped up over the summer. A new surge in COVID-19 cases has already led many mandatory restaurants closures until case numbers decline.

Contributing: Associated Press

Related topics