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Wisconsin unemployment rate hits 14.1% in April

By SCOTT BAUER
Associated Press

MADISON, Wis. (AP) — Wisconsin’s unemployment rate hit 14.1% in April, a level not seen since the Great Depression, the state Department of Workforce Development reported on Thursday.

The rate more than quadrupled from 3.1% in March, mirroring national trends a result of the coronavirus pandemic, and was just below the national unemployment rate of 14.7%. April was the first full month of Wisconsin’s “safer at home” order issued by Gov. Tony Evers in response to COVID-19, forcing most nonessential businesses to close.

Unemployment never hit this high even during the Great Recession in 2008 or the recession in the 1970s, said Dennis Winters, chief economist for the state.

The last time it was this high was during the Great Depression in the 1930s, when unemployment was around 25%, he said.

“This is a totally different phenomenon in its severity and rapidity with which it occurred,” Winters said. “What it means is that the economy has taken a pretty severe hit in a very rapid manner.”

Although unemployment has soared, so too has criticism from Republicans over the speed in processing claims for benefits. As of Monday, more than 2 million weekly claims had been filed since March 15, but more than 675,000 had yet to be paid. Republican lawmakers have called for Evers to more quickly add staff and add to Workforce Development’s hours to process the claims.

State officials have said they are working hard to process claims in the face of unprecedented demand. There were more than 4.2 million calls to the state’s unemployment division last week alone.

The Wisconsin Supreme Court last week ordered an end to the stay-at-home order, resulting in a patchwork of local ordinances governing when businesses can reopen. Some businesses have moved more quickly than others to resume operations and hire people back.

“Today’s report shows the significant impact that the COVID-19 global pandemic has had on the Wisconsin economy, and underscores the importance of rationally and safely reopening our state,” Caleb Frostman, secretary of the state Department of Workforce Development, said in a statement.

Wisconsin lost nearly 386,000 private-sector jobs from March to April, the latest report said. Compared to the year before, Wisconsin lost nearly 402,000 private sector jobs.

Applications for temporary unemployment assistance in Wisconsin declined during the week ending on May 16 as the U.S. economy bore the weight of growing virus fears, according to a release Thursday from the U.S. Employment and Training Administration. The number of applications submitted in Wisconsin during the week ending May 16 fell to 31,314, a decrease of 19% from the number of applications submitted the previous week.

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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