BIRMINGHAM, Ala. (WBRC) - New unemployment numbers out Thursday show a slight increase. This comes after news that the department has been denying claims for more than 3,000 people because they refused to go back to work.
The Alabama labor department said it appears the state’s economy is going in the right direction with unemployment numbers dropping recently.
“We are seeing 18,000 claims coming in a week. Basically we are seeing the numbers decline with the exception of this week where the numbers stayed the same.” Tara Hutchison with ADOL said.
The department has dropped more than three thousand from unemployment claims. The chief reason is refusal to work and concerns about the coronavirus is the main reason. “there is definitely more than we would have seen in the past. The refusal to work clause has been a part of law it’s not something new with the pandemic.” Hutchison said.
The labor department has listed for months on their website a list of reasons you could be dropped from getting unemployment funds. Other reasons include questions answered incorrectly, mistakes on reporting wages or there could be direct deposit errors.
The department has more than 300 million dollars left in what the state pays for unemployment. That number will run out in one to two months.
“If and when the fund becomes insolvent which is a zero balance then what we will have to do is borrow funds from the federal government to continue to pay those state claims. Other states across the country have already started doing this.” Hutchison said.
The labor department is also seeing an uptick in fraud cases. People stealing others names to try and claim the unemployment.