More on initial claims

By: Kriss Sjoblom
3:45 pm
March 27, 2020

Yesterday I posted a chart showing, by sector, the number of claims for unemployment insurance filed between March 1 and March 21 divided by employment in the month of February. I will call this ratio the layoff rate. The chart below is a scatter plot with sectors’ layoff rates measured along the vertical axis and sectors’ the average weekly wages in 2018 measured along the horizontal axis. (The most recent year for which the average wage is available is 2018.) As you can see, there is a strong negative correlation between the layoff rate and the average wage. (The correlation coefficient is -0.61.) This strongly suggests that layoffs have been concentrated among lower wage workers.

However, all the claims captured on the chart were filed before Gov. Inslee issued his “Stay Home, Stay Healthy” order requiring “every Washingtonian to stay home unless they need to pursue an essential activity” and closing “all businesses except essential businesses.” The average wages of workers laid off after Gov. Inslee’s order aught to be greater than the average wages of workers laid off prior to the order.

Here is the data used in the chart:

Layoff Average
Rate Weekly
NAICS Wage
21Mining and Logging 0.8%$1,366
22Utilities 1.3%$1,918
23Construction 4.1%$1,239
31-33Manufacturing 2.4%$1,526
42Wholesale Trade 1.9%$1,543
44-45Retail Trade 2.5%$1,132
48-49Transportation and Warehousing 2.6%$1,160
51Information 1.1%$3,746
52Finance and Insurance 0.8%$1,827
53Real Estate and Rental and Leasing 3.0%$1,060
54Prof., Scientific, and Tech. Services 1.3%$1,946
55Management of Companies 0.2%$2,271
56Admin. & Waste Mgmt. Services 2.9%$968
61Education Services 8.4%$750
62Health Services and Social Assistance 4.6%$1,013
71Arts, Entertainment and Recreation 13.9%$626
72Accommodation and Food Services 15.8%$462
81Other Services 8.0%$776
92Government 0.1%$1,228
Total 3.8%$1,273
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Categories: Categories , Economy.
Tags: COVID-19 , COVID-19 & the economy