Unemployment claims take big jump

Wednesday, Oct. 3, 2001 | 10:04 a.m.

CARSON CITY -- Unemployment insurance claims in Nevada have more than doubled since terrorists attacked the World Trade Center and the Pentagon.

In the week ending Saturday, the state Employment Security Division processed 6,215 claims for jobless benefits, 3,293 more than the week of Sept. 11.

It was the most claims the state has handled since a telephone claims system became operational in April, Director Birgit Baker said. The average wait was 30 minutes, which is about 90 seconds longer than the previous week, she said.

The division does not have a way to track how many times a person may have called to either file a claim or ask for information, Baker said.

However, unemployment claims lines handled 15,441 calls during the week, compared with 16,289 the week before. Of those who called, 3,069 hung up before a staff member could answer. That was down from the 5,008 who gave up the previous week.

Under the old system, she noted, those people would have been waiting in line at a local office to file their claims.

The division has been authorized to hire more employees and install more telephone lines to keep pace with the increased number of claims. It has extended its hours during the weekdays to 7 p.m. and now is open for telephone claims on Saturday.

Baker said the division has been able to meet the challenge of the higher volume. Despite the increase in claims, the state's unemployment fund remained solvent as of Sept. 30, Baker said. The fund, used to pay jobless benefits, had $521.7 million. State law requires only $368.5 million to meet the solvency test.

Gov. Kenny Guinn said previously there is enough money in the fund to pay unemployed workers for the next nine to 10 months.

However, Baker said, the Nevada fund did not meet the level recommended by the federal government. The federal formula suggests Nevada have a balance of between $591 million and $723 million to meet emergencies. Nevada is not bound by that recommendation, she said.

Nevada businesses pay premiums into the fund based on the number of workers and employee turnover. The fund is tested annually to determine whether there is enough money to meet the expected unemployment claims in the coming year.

The U.S. Labor Department announced Tuesday it was allocating $1 million to Nevada's unemployment trust fund. It was part of a nationwide $100 million special distribution to help pay unemployment claims, which have risen since the terrorist attacks.

"Getting money and services into the hands of the temporarily unemployed is crucial, especially for workers so sadly impacted by the Sept. 11 attacks," Labor Secretary Elaine Chao said.

The challenge, Baker said, will come next year to keep the fund solvent given the sluggish economy.

The state last week paid out $5.2 million in jobless benefits, compared with $4.7 million in each of the previous two weeks.

An advisory council to the division will meet Oct. 19 in Las Vegas to decide whether to increase the premiums to employers or keep them the same starting in January.

Baker then will have 15 days to decide on the final rates.