Alaska receives almost 10 times more unemployment filings since shutdown began

Alaska receives almost 10 times more unemployment filings since shutdown began

Numbers jumped from 40 in a month to 382 in past three weeks

There have been almost 10 times more unemployment filings from federal workers in Alaska than normal since the federal shutdown began.

The Alaska Department of Labor & Workforce Development received 382 benefit claims from federal workers in Alaska over the last three weeks, Division Director Patsy Westcott said. In contrast, there were only about 40 claims for federal workers in Alaska for the whole month of November.

“That’s pretty significant,” she said.

The maximum unemployment payout benefit in Alaska is $370 per week, and Westcott said most federal employees would qualify for that amount. She did not have data on how many of the 382 new filings were from Juneau.

Juneau Economic Development Council has been working on collecting estimates for local data. Executive Director Brian Holst said the JEDC estimates there are about 670 federal workers in Juneau, accounting for 4.1 percent of the total workforce in town. The Coast Guard active duty employees are all working, along with all of the Transportation Security Administration employees at the airport and the U.S. Postal Service workers.

“Most of our gaps are the Forest Service workers,” Holst said. Of about 165 Forest Service workers, only about 20 to 30 are working, he said.

Some are being paid through fees collected at Mendenhall Glacier Visitor Center, but that won’t last forever, Holst said. The Postal Service is also able to pay employees through stamp revenues, he said.

“If this happens another two weeks, it will really start to impact the local economy,” Holst said. “I think it’s a bit muted right now.”

He attributed some of the “muted” impacts to the fact that Congress passed a bill last week confirming retroactive pay for furloughed federal workers. This makes economic impacts harder to gauge because workers might still be spending normally, just buying things on credit cards because they’ve been assured that the lost wages will come back to them, he said.

JEDC estimates that $2.3 million in Juneau workers’ wages were not paid out in last week’s pay period.

“It would be an exaggeration to say that number equals the spending lost,” Holst said. But as time progresses, people will slow down their spending to a closer amount equal to lost wages. He also said there’s a multiplier effect on places like grocery stores and restaurants, such as the ones reported by the Empire last week.

Workers who filed for unemployment right when the shutdown began have already started receiving weekly payouts, Westcott said. To apply, she said furloughed workers need some kind of wage proof, such as pay stubs, to help speed up the process.

“Federal agencies don’t automatically report worker wages to the state,” she said. “We have to request those. But with the shutdown there’s no one there to send us those reports.”

But Alaska’s unemployment “trust fund is healthy,” Westcott said.

“We definitely have the funds to pay benefits to these workers, so there’s no concern there,” Westcott said.

If workers are paid retroactively once a federal budget passes, workers who received unemployment benefits will be required to pay back any benefits they received during the shutdown from that retroactive pay.

Ideally, Westcott said, workers would pay that money back as soon as they receive retroactive pay.

“Once we establish an over-payment, if the benefits aren’t paid back timely, then we will pursue a levy like a Permanent Fund Dividend payout,” she said. “So it’s in workers’ best interest to pay it back when they get their retroactive pay.”


• Contact reporter Mollie Barnes at mbarnes@juneauempire.com or 523-2228.


More in News

Poll worker Carol Louthan helps voters submit ballots at the Soldotna Regional Sports Complex in Soldotna, Alaska, on Tuesday, Nov. 5, 2024. (Jake Dye/Peninsula Clarion)
Strong turnout reported as voters head to polls

Several residents said that they came out to vote because they knew this election was “a big one.”

Seward City Clerk Kris Peck, right, administers an oath of office to Seward City Council newcomer Casie Warner during a council meeting in Seward, Alaska, on Oct. 28, 2024. (Screenshot courtesy City of Seward)
Seward City Council swears in winners of October municipal election

They were sworn in two weeks after the council certified its election results

Duane Bannock speaks to the Kenai Peninsula Borough Assembly in Soldotna, Alaska, on Tuesday, June 18, 2024. (Jake Dye/Peninsula Clarion)
Borough’s tourism industry working group takes shape

The group will explore the effects of a potential bed tax

Assembly Member Peter Ribbens speaks during a meeting of the Kenai Peninsula Borough Assembly in Soldotna, Alaska, on Tuesday, June 18, 2024. (Jake Dye/Peninsula Clarion)
Ribbens, Cooper named new heads of borough assembly

The Kenai Peninsula Borough Assembly reorganized during their Oct. 22 meeting

A special weather statement for the western Kenai Peninsula was issued Monday by the National Weather Service. The area will see strong gusty winds and rain late tonight and through Tuesday morning. A winter storm warning remains in effect from 3 a.m. to 4 p.m. Tuesday for areas of the eastern peninsula. (Image via weather.gov)
Windy weather heads for western Kenai Peninsula

The western Kenai Peninsula will experience some windy and wet conditions Tuesday and Wednesday.

Lisa Gabriel, left, watches as beach seine nets are pulled from the waters of Cook Inlet at a test site for the gear near Kenai, Alaska, on Tuesday, July 30, 2024. (Jake Dye/Peninsula Clarion)
Board of Fish to consider set beach seines for east side setnet fishery

Seines were tested on local beaches this summer in effort helmed by Lisa and Brian Gabriel

Sockeye salmon are gathered together at a test site for selective harvest setnet gear in Kenai, Alaska, on Tuesday, July 25, 2023. (Jake Dye/Peninsula Clarion)
Board of Fish to consider expansion of commercial dipnetting fishery

Discussion of expanded time, days and season of commercial dipnet fishery scheduled for March

The Alaska Board of Fisheries hears public testimony at the Soldotna Regional Sports Complex in Soldotna, Alaska, on Feb. 18, 1999. (M. Scott Moon/Peninsula Clarion file)
Board of Fisheries again declines to hold Upper Cook Inlet meeting on Kenai Peninsula

The State Board of Fisheries this week rejected calls from the Kenai… Continue reading

Most Read