Fri, Jan 9, 2009
Unemployment rate hits
30-year high in Sussex County
Georgetown unemployment office overrun with claims
Delaware’s unemployment rate is the highest it’s been since the 1970s, and Sussex County tops the list with a 5.7 percent unemployment rate. More than 1,300 nonfarm jobs have been lost in Sussex County, including nearly 1,000 in construction, according to the U.S. Department of Labor.

At the same time, more people are visiting the Cape Region, although they’re not spending as much in restaurants and shops. The state’s unemployment rate, hovering at 5.6 percent, is below the national average of 6.7 percent. Still, about 500 tourism-related jobs were created in Sussex County in 2008.

According to November numbers, an additional 25,000 residents are out of work in Delaware, with construction and manufacturing industries taking the biggest hit. The U.S. Department of Labor, on Dec. 19, released statewide unemployment rates. In Delaware, November 2008 unemployment reached 25,100 – a 62 percent increase over November 2007, when 15,600 Delawareans were jobless. Delaware’s December data will not be released until Jan. 23.

“I think it’s important to note that while Delaware’s unemployment rate is moving up, we are still tracking better than the nation with a rate of 6.7 percent ending in November 2008,” said Delaware Division of Unemployment Insurance Director Tom MacPherson.

In Michigan, where the local economy relies more on car manufacturing, the unemployment rate is 9.6 percent – the highest in the nation.

In Delaware, MacPherson said, 23,000 jobs were lost in construction as the housing market stalled, and about 2,000 manufacturing jobs were cut.

In Newark, the Chrysler assembly plant closed Friday, Dec. 19, with layoffs starting immediately for its 2,000 workers adding to December joblessness.

On Dec. 23, Vice President-elect Joe Biden and Rep. Tom Carper, among others, sent a letter to U.S. President-elect Barack Obama and the congressional leadership urging them to craft an economic recovery package for communities with massive job layoffs.

“These communities cannot recover from the double blow of national economic recession and massive local job loss without specialized assistance from the federal government,” said Carper, in a release. Programs could include grants for retraining people who are out of work and other financial assistance called economic disaster relief.

Silver lining in the Cape Region?

Some experts attribute lower state unemployment rates to a diverse local economy.

Industries such as tourism and health-related services have added jobs, says MacPherson.
“What is happening is not just a Delaware issue. It’s a national issue. But Delaware, due in part to a diverse economy from top to bottom, makes us a little more resilient,” MacPherson said.

He said in northern Delaware, financial services jobs are more prevalent than the tourist-centered industries of southern Delaware, including Dover Downs and the resort areas.

In Sussex County, of the 1,300 nonfarm jobs lost, 900 were eliminated in construction, MacPherson said. But, leisure and hospitality services added 500 jobs in Sussex over the past year, he said.

Rehoboth Beach-Dewey Beach Chamber of Commerce President and CEO Carol Everhart noted that while New Castle and Kent county tourist visitations were down, in Sussex County, tourism-related numbers increased. “While the other two counties see double-digit losses in visitation, we’re seeing a 16 percent increase compared to last year,” she said.

Still, retail store and restaurant owners say sales are sluggish, she said. “If you look at first glance, you would say things are wonderful, but behind that figure, people are spending less,” she said. “While we were certainly pleased with strong visitation, businesses are still hurting. My sense is that in our area, for the most part, we’re holding our own. But we’re also holding our breath,” she said.

Georgetown unemployment office overrun with claims

Lines of unemployed people snaked into the Georgetown Professional Building on Route 113 across from Wal-Mart. The Georgetown office of the Division of Unemployment Insurance was packed Tuesday, Jan. 6, as jobless workers waited hours – some all day – to file for unemployment insurance benefits.

Once inside, it was standing room only as job seekers filled six rows of chairs waiting for one of four clerks to process hundreds of applications.

Ronald Lewis is a 58-year-old Milton truck driver whose hours were reduced, he said. “I would just like to be doing my job making deliveries,” he said. Last January, when he filed for insurance benefits for the first time, Lewis said he was in and out of the office in 20 minutes. On Jan. 6, Lewis said he arrived at 7:30 a.m. By noon, he was still sitting on a stair reading the newspaper. “And, I’m just re-opening my claim,” he said.

Of the 13 agency workers in Georgetown, four are temporary employees, who began in July after the federal government added unemployment benefit extensions, said Tom MacPherson, director of the Delaware Division of Unemployment Insurance.

“With the unemployment rate increasing, all of our local offices are much busier than they have been,” MacPherson said. As new fiscal quarters approach, the office processes even more claims, he said. The unemployment department has four offices statewide. All have increased their temporary employees to meet increased claims, MacPherson said. “Everybody does a little bit of everything. Everyone is cross-trained,” said MacPherson. “Now, it’ll be all hands on deck, so to speak,” he said.

MacPherson said since the unemployment program is federally funded, there is no cost to the state. The agency also anticipates having enough money to pay unemployment benefits, at least for now, he said.

Precious Dorsey, 19, of Millsboro, is an out-of-work cashier. Waiting outside the office, she said, “I’ve never gotten seen yet. I’m just waiting. This is the first time I’ve filed for unemployment. I got laid off three days ago – by phone,” she said.

Harrington resident Gary Johnson got his pink slip on Dec. 30. He said he knew it was coming because, as a marine mechanic at G.N.J. Marine, work has tapered off.

Johnson said, “I got here at 8 and they’ve gone through 15 people in the amount of time I’ve been here. I was talking to somebody who said in the summer there were 30 people a day. Now, it’s like 150 a day.” He said he was told to bring a letter of intent to rehire from his job, pay stubs, a driver’s license and a Social Security card. Johnson considers himself lucky. He’s only 20 and he’s taking mechanics classes at Sussex Technical High School’s adult education program. Still, he said he needs gas money to get to classes. “Hopefully, I’ll find a part-time job,” he said.

One 60-year-old woman from Harbeson, who wished to remain anonymous, sat on the stairs reading a book. She clutched her number and said she had been waiting for three hours to file for unemployment. She said her hours working at a Rehoboth Beach outlet store were reduced after the holidays. “I’m down to nine hours this week. I averaged 30 hours a week before,” she said. “This is my retirement job until I can collect Social Security. At least I’m not in as bad shape as the other people,” she said.

How to file for unemployment benefits

To be eligible for unemployment benefits, an individual must have a work history, be able to work, available to work and actively seeking work, and register for work with the division of employment and training unless exempt by law.

Visit the nearest unemployment insurance claims office and bring proof of name, address, Social Security card. You may substitute information with W2 or pay stub with name and Social Security number on it, along with a picture identification card. Veterans who have served within the past 18 months must present DD 214 (Member 4) form to file for benefits and reason for job loss.

The Division of Unemployment Insurance Office is located across from Wal-Mart on Route 113 at 600 N. Dupont Highway, Suite 207, Georgetown. For more information, call 800 794-3032.

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