New unemployment claims soar

Jul 25, 2010 — The Evening News and The Tribune

Daniel Suddeath

Jul. 24, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- > SOUTHERN INDIANA -- Indiana endured the second largest increase in new unemployment claims in the nation last week, according to a U.S. Department of Labor report.

More than 9,000 Hoosiers filed for jobless insurance benefits between July 11 and July 17. That was less than only New York, which saw about 18,000 newly unemployed workers request benefits.

The state supplied comment included in the Department of Labor report blamed the hike in Indiana on layoffs in the automobile and service industries.

While Indiana saw positive year-to-year gains in employment in June, that was compared to low levels in 2009 according to Uric Dufrene, Sanders chair of the Indiana University Southeast school of business.

The jump in unemployment claims is cause for concern in Indiana, he said.

"I follow this report weekly, and this is one of the largest increases that I've ever seen for Indiana," Dufrene said. "So unfortunately, I think this suggests that Indiana may be hitting another rough patch on the employment front."

The June jobless rate for Indiana increased slightly to 10.1 percent. The initial numbers showed Clark County's unemployment mark was 9.3 percent, and Floyd's 9.2 percent.

Both counties saw a spike in their jobless marks from the previous month.

Dufrene said it's too early to know what the latest figures mean in terms of the unemployment rate, but added that it could mean a slowing of the broader economy if the layoffs aren't temporary.

"I don't think the rate will increase back up to 12 percent, but we are not going to see a fast return to lower rates," he said.

New Jersey saw the biggest decrease in new jobless claims for the week ending July 17, dropping 10,585 requests from the previous period.

Kentucky did endure a sizable spike in jobless claims, however. According to the report, 1,874 new claims were filed.

Also on the unemployment front, the Indiana Department of Workforce Development, or DWD, is seeking repayment of stimulus funds distributed to jobless Hoosiers who were later deemed to be ineligible for benefits.

According to a news release the department intends to notify 36,000 Hoosiers that they must also repay their $25 weekly stimulus stipend along with the other benefits they received.

According to the release, about half of those impacted only collected the stimulus payment for one week and will receive a bill for that amount. However, the average bill is about $120 per person.

The department "has a legal obligation to collect every dollar in unemployment benefits paid to people who weren't eligible to receive them," said DWD Communications Director Marc Lotter. "We will work with every Hoosier receiving this notice to facilitate a repayment plan."

The total amount to be collected, according to the DWD, is $4.4 million.

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