Unemployment Spikes After COVID-19 Disrupts Businesses

In an effort to limit COVID-19 spread, a mandatory shut down of many local businesses and recreational facilities was a necessary evil. Community staples and local favorites have either closed shop temporarily or altered services to be curbside or take out.

"Not surprisingly, we're starting to see a rapid rise in the number of (unemployment initial insurance) claims being filed statewide," said Don Messick, regional labor economist.

According to the Washington State Employment Security Department, the week of March 7 had 6,548 unemployment initial insurance claims and the following week, March 14, jumped to 14,154 statewide.

"The rise is not as rapid in Chelan County or especially Douglas County as it was in the state," said Messick. "So the good news is, the initial impact in terms of the rising number of claims has not been as severe here in Chelan and Douglas Counties."

In Chelan County, the week of March 7 had 89 unemployment claims and by week March 14, there was 110 unemployment claims.

"Not surprisingly, accommodation and food services, specifically hotels and restaurants and bars, saw a dramatic, nearly a sixfold increase in just one week," said Messick.

There was 523 initial unemployment claims in this industry in the week of March 7 and that had increased to 3,647 one week later, March 14.

According to Messick, another industry that jumped in unemployment claims was educational services which is in correlation with Washington state schools adjusting to no in person classes for six weeks. Arts, entertainment and recreation saw a jump from 86 to 306 claims. Healthcare also saw a spike in unemployment.