Good afternoon,
Thanks to the holiday and the election, Delaware’s surprisingly strong 5.6 percent October unemployment rate was largely overlooked.
The jobless rate dropped sharply from 8.3 percent the previous month and gave the First State a significantly lower figure than the national rate of 6.9 percent.
Before breaking out the champagne, consider the following from the Delaware Department of Labor.
Since the Covid-19 pandemic crashed into the economy, more than $1 billion in unemployment benefits have been paid out in Delaware. The bulk of this money ($916 million) came from the unemployment insurance system, with the feds kicking in more than half of the proceeds.
For those unable to find work, the state’s current $400 a week maximum benefit will have to suffice.
Based on October figures, total employment in Delaware is down 36,000 from a year ago. Virtually all sectors of the economy have seen job losses.
Meanwhile, the pandemic has entered its winter phase, with hospitalization numbers steadily rising to 200 after dropping below 50 during the summer lull.
Current efforts to control the spread will hamper the economy, although a full shutdown is not in the cards, barring a sudden upturn in hospitalizations.
In the next couple of months, we’ll know if the rate was a statistical fluke or a sign of a recovery.
It is possible the most recent jobless rate could very well be the best we might see for a while as stimulus benefits such as the Payroll Protection Program for businesses that retained employees and the $600 a week jobless benefit become a distant memory.
It adds up to a big challenge for Gov. John Carney and the General Assembly and the administration of President-Elect Joe Biden.
Stay dry and safe. This newsletter will return tomorrow:- Doug Rainey, chief content officer.
