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Texas' unemployment rate spikes amid COVID-19 pandemic

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Unemployment claims shot up in Texas during the week of March 8, the start of mandatory business closures, social distancing and restrictions on public gatherings in the state. 

Unemployment benefit claims rose by 38% compared to that same week in 2019, the Texas Workforce Commission said. Over 16,000 people filed for unemployment insurance and others are warning of layoffs, The Dallas Morning News reported. 

The state is trying to make receiving unemployment benefits easier and faster by eliminating the waiting week unemployment benefits applicants have to wait after applying. Those applying for insurance also won't have to register on state jobs sites to show that they are looking for employment. 

These changes for unemployment benefits were made after Gov. Greg Abbott declared a statewide disaster in response to the COVID-19 pandemic. 

Many businesses in Texas have closed, which leaves many residents of Texas unemployed. 

“I certainly think it’s reasonable to anticipate just a crush of unemployment applications,”  Terah Moxley, attorney at Estes Thorne & Carr In Dallas, told The Dallas Morning News

Dallas and most of Texas had low unemployment rates before the COVID-19 pandemic.

“We are certainly beginning to see the cracks in the foundation," Andrew Challenger, senior vice president of Challenger, Gray & Christmas Inc., said. "Slowing demand, brought on by the need for Americans to practice social distancing, is going to very likely immediately hurt those who work in the nation’s hotels, restaurants and bars."

Many companies are giving employees a leave of absence, but allowing them to keep their benefits until business returns to normal. 

Scott Warrick, an Ohio-based human resources consultant and lawyer, said many companies throughout the nation are faced with making tough decisions such as laying off workers. 

“I don’t hear any of my clients making decisions based on unemployment benefits or what the government is going to do with aid,” he told The Dallas Morning News

The unemployment insurance in Texas pays $521 at the most and $69 at the least. It can last up to six months. Workers won't be able to receive the higher end of the insurance unless they worked a high-paying job. 

Any workers who have been laid off, given a leave of absence, or given reduced hours are eligible in Texas for the unemployment benefits. 

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