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3.3 million seek US jobless aid, nearly 5 times earlier high

By CHRISTOPHER RUGABER

WASHINGTON (AP) — Nearly 3.3 million Americans applied for unemployment benefits last week — almost five times the previous record set in 1982 — amid a widespread economic shutdown caused by the coronavirus.

The surge in weekly applications was a stunning reflection of the damage the viral outbreak is inflicting on the economy. Filings for unemployment aid generally reflect the pace of layoffs.

Layoffs are sure to accelerate as the U.S. economy sinks into a recession. Revenue has collapsed at restaurants, hotels, movie theaters, gyms and airlines. Auto sales are plummeting, and car makers have closed factories. Most such employers face loan payments and other fixed costs, so they’re cutting jobs to save money.

As job losses mount, some economists say the nation’s unemployment rate could approach 13% by May. By comparison, the highest jobless rate during the Great Recession, which ended in 2009, was 10%.

“What seemed impossible just two weeks ago is now reality,” said Nancy Vanden Houten, an economist at Oxford Economics, a consulting firm. “The US economy will experience the largest economic contraction on record with the most severe surge in unemployment ever.”

The economic deterioration has been swift. As recently as February, the unemployment rate was at a 50-year low of 3.5%. And the economy was growing steadily if modestly. Yet by the April-June quarter of the year, some economists think the economy will shrink at its steepest annual pace ever — a contraction that could reach 30%.

In its report Thursday, the Labor Department said 3.283 million people applied for unemployment benefits last week, up from 282,000 during the previous week. Many people who have lost jobs in recent weeks, though, have been unable to file for unemployment aid because state websites and phone systems have been overwhelmed by a crush of applicants and have frozen up.

That logjam suggests that Thursday’s report actually understates the magnitude of job cuts last week. So does the fact that workers who are not on company payrolls — gig workers, free-lancers, the self-employed — aren’t currently eligible for unemployment benefits even though in many cases they’re no longer able to earn money.

With layoffs surging, a significant expansion of unemployment benefits was included in an economic relief bill nearing final approval in Congress. One provision in the bill would provide an extra $600 a week on top of the unemployment aid that states provide. Another provision would supply 13 additional weeks of benefits beyond the six months of jobless aid that most states offer. The new legislation would also extend unemployment benefits, for the first time, to gig workers and others who are not on company payrolls.

Separate legislation passed last week provides up to $1 billion to states to enhance their ability to process claims. But that money will take time to be disbursed.

In the United States, the jump in applications for benefits is playing out in states across the country. In California, claims for unemployment benefits more than tripled last week to 187,000. In New York, they rose by a factor of five to 80,334. Nationwide, about 2.25% of the entire workforce applied for jobless aid last week. In Nevada, the figure was 6.8%, in Rhode Island 7.5%.

Gov. Gavin Newsom said 1 million claims for unemployment benefits had been filed in California since March 13. Many of those applications were likely filed this week, suggesting that next week’s report could show an even larger number of claims.

In Florida, Jessy Morancy of Hollywood was laid off last week from her job as a wheelchair attendant and customer service agent at Fort Lauderdale Airport. Morancy, 29, called the state unemployment office on Monday to try to file for unemployment benefits but encountered just a recorded message telling her to call back later.

She was also concerned that even a full unemployment benefit of $275 a week would be less than half of what she earned at her job and insufficient to provide for her children, ages 10 and 7.

“I’m still in a state of shock,” Morancy said.

Even for those able to file a claim, the benefits will take time to kick in. It typically takes two to three weeks before applicants receive any money. State agencies must first contact their former employers to verify their work and earnings history. Only then can the employee’s weekly unemployment benefits be calculated.

Worsening the problem, most state agencies that handle unemployment claims are operating at historically low funding levels and staffing that are intended to handle a trickle of claims. Just weeks ago, the job market was in the strongest shape it had been in decades.

Kim Boldrini-Sen, 41, has also struggled to file her claim. She has tried in two states: In Connecticut, where she works as an acupuncturist in a private practice, and in New York, where she lives and has her own acupuncture business.

In Connecticut, she thought her application had been submitted. But when she returned last week to re-file as applicants are required to do each week, she found there was no record of her initial filing. After taking an hour to re-file, she received a pop-up notice that she was ineligible to do so online.

In New York, the state’s website repeatedly crashed when she was halfway through filling out her request. When she finally managed to press submit, she received a pop-up saying she had to file over the phone. That hasn’t worked well, either.

“I’ve called at all hours of the day,” she said. “That’s been my life for a week, and I still can’t get through to anyone.”

On Wednesday, the New York State Department of Labor tweeted, “If you have been unable to get through our phone and/or online system this week, please keep trying.”

“We are working as hard as we can to ensure that all benefits are paid and appreciate your patience,” the agency said on Twitter.

Worldwide, the United Nations estimates that up to 25 million jobs could be lost in the economic upheaval from the viral outbreak. That would exceed the 22 million that were lost during the 2008 global financial crisis.

In Europe, companies are laying off workers at the fastest pace since 2009, according to surveys of business managers. Official statistics for Europe that would reflect the outbreak’s impact are not yet out. But companies have been announcing tens of thousands of job cuts, both permanent and temporary. Major car companies like Fiat Chrysler and airlines like Lufthansa are suspending most of their operations, putting tens of thousands of workers on temporary leave, many with only a partial salary.

The unemployment rate in the 19 countries that use the euro was 7.3% at last count in January. It’s expected to rise toward 10%, depending on the duration of the outbreak, economists say. The rise in joblessness may not be as sharp as in the U.S. because it’s harder to fire workers in Europe, where many governments are supporting companies financially to keep employees on partially paid leave.

Ellen Zentner, an economist at Morgan Stanley, said in a note to clients that 17 million jobs could be lost through May — twice the entire 8.7 million jobs that were lost in the Great Recession. She expects the unemployment rate to average 12.8% in the April-June quarter, which would be the highest level since the 1930s.

Still, Zentner also expects the economy to start recovering by the second half of the year. But it will take time for things to return to something close to normal, she projects: The unemployment rate could still top 5% at the end of next year.

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AP Writers Carlo Piovano in London, David Lieb in Jefferson City, Missouri, and Matthew Barakat in Falls Church, Viriginia, contributed to this report.

One arrested in Ottumwa shooting

Ottumwa Police have a man in custody in connection with a Tuesday night shooting.  Around 11pm Tuesday (3/24), Ottumwa Police received several 911 calls about gunshots in the 1000 block of West Main Street.  Police found eleven spent shell casings in and near the road at that location.  A suspect was identified after talking to people in the neighborhood.  Then around 12:30 Wednesday morning (3/25), the suspect was found in the 500 block of North Market Street in Ottumwa.  Police obtained a search warrant for the suspect’s apartment and found the handgun believed to have been used in the shooting.  26-year-old Romario Scott Eliacin of Ottumwa was arrested and charged with intimidation with a dangerous weapon and felon possessing a firearm.  Eliacin is in custody in the Wapello County Jail on $15,000 cash only bond.

COVID-19 update

There are 34 new cases of coronavirus reported in Iowa.  That brings the statewide total as of Thursday (3/26) to 179.  Among these new cases are the one previously reported in Mahaska County.  There’s also one new case of COVID-19 in Jasper County.  That person is aged 81 or older.  There has still been only one death from coronavirus….and the Iowa Department of Public Health says 2975 people have tested negative for the virus.

Ricky The Chihuahua/Terrier Mix

Meet this week’s H&S Feed & Country Store Pet of the Week  Ricky. He is a 1 to 2 year old Chihuahua/Terrier mix found on the 4 lane west of Oskaloosa. He is a very sweet guy, loves attention and loves to wrestle and play. We are taking applications for him here at the shelter, so go to the website at stephenmemorial.org and fill out that application today.

Taylor Swift Donates $3K To Photographer Struggling Due To Coronavirus

A lot of folks are struggling financially due to the coronavirus, and Taylor Swift just helped out one of them. A freelance music photographer named Holly Turner just shared on social media that Taylor donated $3,000 to help her stay on her feet while she’s not working.

“i made a post on tumblr about how i was scared i wouldn’t be able to stay living in NYC because of what corona has done to the music industry,” Holly tweeted. “ @taylorswift13 literally single-handedly saved my ability to stay here. i cannot even believe my eyes right now.”

Holly also shared a screengrab confrming the donation from Taylor Nation, LLC, with the note that read, “Holly, you have always been there for me. I want to be there for you right now. I hope this helps. Love Taylor.”

This day in 2000: Faith Hill subs for Whitney Houston at the Oscars

Today in 2000, Faith Hill subbed for Whitney Houston during a medley of old Oscar-nominated songs at the 72nd annual Academy Awards. Garth Brooks was also involved in the segment. Later he said he was thankful Faith was gracious enough to step in at the last minute and that he felt for Whitney, who was “so sick.”

(Faith’s performance is at the 2:08 mark)

Osky students won’t make up time missed to coronavirus

The three weeks of school that Oskaloosa students are missing due to the coronavirus concerns will not be made up at the end of this year’s school calendar.  Oskaloosa School Superintendent Paula Wright:

“The Board tonight (3/24) authorized the waiver, which allowed the missed time, which for us is 97 hours of missed time, that they will not be having to make up.  The Board did say they wanted to have further discussion if this closure extends longer than these next three weeks, then they want to have a further discussion about whether or not they will forgive those or start adding it on to the end of the year.”

Also at Tuesday’s (3/24) Oskaloosa School Board meeting, the Board approved a one year contract with the Oskaloosa Education Association, pending the Association’s approval.  Also, the Board voted to suspend District policy as necessary.  With that decision, the District’s school buildings are now closed to the public and the District’s employees are staying on paid status while school is on hold.

Hospital notes

As of Wednesday morning (3/25), Mahaska Health in Oskaloosa will begin in-car screenings for all patients entering the facility.  All patients coming to Mahaska Health for any reason will need to pass an in-car screening at the south side of the hospital’s campus.  You’ll have your temperature taken and you’ll need to answer a brief health survey.  This screening does not constitute a COVID-19 test.  Once the screening is completed, staff will direct patients where to go next.

Also starting on Wednesday, visitors will not be allowed at Grinnell Regional Medical Center until the COVID-19 virus is no longer a threat to the community.  Exceptions will be allowed for a patient who is at end of life, or for a patient under 18.  And in those cases, a visitor will be allowed only if they don’t show signs of a respiratory infection.

White House, Congress agree on $2 trillion virus rescue bill

By ANDREW TAYLOR, LISA MASCARO and JONATHAN LEMIRE

WASHINGTON (AP) — The White House and Senate leaders of both major political parties announced agreement early Wednesday on an unprecedented $2 trillion emergency bill to rush sweeping aid to businesses, workers and a health care system slammed by the coronavirus pandemic.

The urgently needed pandemic response measure is the largest economic rescue measure in history and is intended as a weekslong or monthslong patch for an economy spiraling into recession and a nation facing a potentially ghastly toll.

Top White House aide Eric Ueland announced the agreement in a Capitol hallway shortly after midnight, capping days of often intense haggling and mounting pressure. The deal still needs to be finalized in detailed legislative language.

“Ladies and gentlemen, we are done,” Ueland said. “We have a deal.”

The economic rescue package would give direct payments to most Americans, expand unemployment benefits and provide a $367 billion program for small businesses to keep making payroll while workers are forced to stay home.

One of the last issues to close concerned $500 billion for guaranteed, subsidized loans to larger industries, including a fight over how generous to be with the airlines. Hospitals would get significant help as well.

“After days of intense discussions, the Senate has reached a bipartisan agreement on a historic relief package for this pandemic,” said Majority Leader Mitch McConnell, R-Ky., a key negotiator. “It will rush new resources onto the front lines of our nation’s health care fight. And it will inject trillions of dollars of cash into the economy as fast as possible to help Americans workers, families, small businesses and industries make it through this disruption and emerge on the other side ready to soar.”

At the White House on Tuesday, even as the public health crisis deepened, President Donald Trump expressed eagerness to nudge many people back to work in the coming weeks and held out a prospect, based more on hope than science, that the country could be returning to normal in less than a month.

“We have to go back to work, much sooner than people thought,” Trump told a Fox News town hall. He said he’d like to have the country “opened up and just raring to go” by Easter, April 12. But in a White House briefing later, Trump said that “our decision will be based on hard facts and data.”

Medical professionals say social distancing needs to be stepped up, not relaxed, to slow the spread of infections. At the White House briefing, the public health authorities said it was particularly important for people in the hard-hit New York City metropolitan area to quarantine themselves for 14 days and for those who have recently left the city to do the same.

Dr. Anthony Fauci, the government’s top infectious disease expert, said pointedly at the briefing, “No one is going to want to tone down anything when you see what is going on in a place like New York City.”

On Capitol Hill, five days of arduous talks produced the bill, creating tensions among Congress’ top leaders, who each took care to tend to party politics as they maneuvered and battled over crafting the legislation. But failure was never an option, which permitted both sides to mark big wins.

Even before the deal was reached, news of the likely but elusive agreement had sent the stock market rocketing on Tuesday. The rescue package would be larger than the 2008 bank bailout and 2009 recovery act combined.

The package would give one-time payments of $1,200 per adult and $500 per child directly to the public.

A huge cash infusion for hospitals expecting a flood of COVID-19 patients grew during the talks at the insistence of Sen. Chuck Schumer, the Democratic leader, while Republicans pressed for tens of billions of dollars for additional relief to be delivered through the Federal Emergency Management Agency, the lead federal disaster agency.

Democrats said the package would help replace the salaries of furloughed workers for four months, rather than the three months first proposed. Furloughed workers would get whatever amount a state usually provides for unemployment, plus a $600 per week add-on, with gig workers like Uber drivers covered for the first time.

“It ensures that all workers are protected whether they work for businesses small, medium or large, along with self-employed and workers in the gig economy,” Schumer said.

Republicans won inclusion of an “employee retention” tax credit that’s estimated to provide $50 billion to companies that retain employees on payroll and cover 50% of workers’ paychecks. Companies would also be able to defer payment of the 6.2% Social Security payroll tax.

Democrats pointed to gains for hospitals, additional oversight of the huge industry stabilization fund and money for cash-strapped states. A companion appropriations package ballooned as well, growing from a $46 billion White House proposal to more than $300 billion, which dwarfs earlier disasters — including Hurricane Katrina and Superstorm Sandy combined.

To provide transparency, the package is expected to create a new inspector general and oversight board for the corporate dollars, much as was done during the 2008 Troubled Asset Relief Program bank rescue, officials said.

Trump in recent days has sounded a note of frustration about the unprecedented modern-day effort to halt the virus’ march by essentially shutting down public activities in ways that now threaten the U.S. economy.

Even though Trump’s administration recommended Americans curtail activities for 15 days, starting just over a week ago, the Republican president said he may soon allow parts of the economy, in regions less badly hit by the virus, to begin reopening.

He continued on that theme Tuesday as he weighed a relaxation of social distancing guidelines after the 15-day period is up. His suggestion that the pandemic could ease and allow a return to normalcy in a mere few weeks is not supported by public health officials or many others in government.

On Tuesday, top defense and military leaders warned department personnel that the virus problems could extend for eight to 10 weeks or longer. Army Gen. Mark Milley, chairman of the Joint Chiefs of Staff, said during a Defense Department town hall meeting that the crisis could even extend into July.

Trump has balked at using his authority under the recently invoked Defense Protection Act to compel the private sector to manufacture needed medical supplies like masks and ventilators, even as he encourages them to spur production. “We are a country not based on nationalizing our business,” said Trump, who has repeatedly railed against socialism overseas and among Democrats.

For most people, the new 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 and death. The vast majority of people recover.

The virus has caused a global pandemic that has sickened more than 425,000 people and killed about 19,000 worldwide. In the United States, more than 55,000 people have been sickened and more than 800 have died.

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Associated Press writers Lolita C. Baldor, Zeke Miller, Mary Clare Jalonick, Ricardo Alonso-Zaldivar, Alan Fram and Padmananda Rama contributed to this report.

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