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Iowa jobless claims soar

IOWA CITY — Unemployment claims rose nearly nineteenfold in Iowa last week as the coronavirus pandemic that inflicted economic pain across the country left entire sectors of the job market in tatters, officials reported Thursday as the state recorded its biggest daily increase in cases.

The U.S. Department of Labor reported that initial claims for jobless benefits in Iowa surged to 41,890 in the week that ended March 21. That was up from 2,229 the week prior, a historic spike that laid bare the virus’ sudden economic impact and mirrored the bigger picture. The national figure surged to a record 3.3 million claims, as people were laid off as non-essential businesses closed or scaled down as part of the effort to slow the spread of the disease.

The number of confirmed Iowa cases of COVID-19, the disease caused by the coronavirus, jumped Thursday to 179, which was an increase of 34 over Wednesday’s figure and the biggest daily jump yet for the state. One Iowa patient has died.

For most people, the coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia, or death.

Like many counterparts in other states, Gov. Kim Reynolds has ordered the temporary closure of schools, bars, dine-in restaurants, theaters, casinos and barbershops in an attempt to stop the spread of the virus.

Iowa Workforce Development reported that about one-third of last week’s claims came from workers in the accommodation and food services industries. Other claimants came from the health care, education and retail sectors.

The Iowa Restaurant Association said Thursday that a survey of 670 bars and restaurants statewide found that more than four out of five had laid off workers. Even restaurants that have remained open for carryout service have still laid off up to 90% of their employees, the association said.

The owners who were surveyed projected that their March revenues would plummet by 84% compared with a year earlier, the association said.

“The picture is grim,” said association CEO Jessica Dunker. “We knew the precautionary step that shuttered large portions of our industry in an effort to fight the coronavirus would be detrimental, but our initial numbers indicate that for as many as 20% of our operators, there may be no coming back.”

For perspective on the number of unemployment claims filed, 41,000 is roughly the population of Cedar Falls, one of Iowa’s 15 largest cities. The initial claims filed last week were more than those submitted during the rest of 2020, combined.

Iowa Workforce Development said it managed to process all of the claims despite the surge, and asked the public to be patient and seek answers online first before calling.

Wait times at the state’s customer service phone center have been longer than normal due to an “unprecedented level of calls” that are being answered by hundreds of staffers, the agency said.

“We will continue to provide as much assistance as possible to our fellow Iowans to ensure everyone who is eligible for benefits, receive those benefits in a timely basis,” the agency said in a statement.

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