The U.S. Department of Labor released its latest report on initial unemployment claims this week, and the news is mixed. While new jobless claims in Minnesota rose last week compared to the week prior, the state’s unemployment rate remains low.
According to the report, initial filings for unemployment benefits in Minnesota increased to 9,824 in the week ending December 2. The numbers went up from 6,244 the week before. This represents a 56.4% increase in new claims. While this may seem like a significant jump, it is important to remember that the state’s unemployment rate remains low at 3.3%. That is below the national average of 3.6%.
How Does it Affect Your Insurance?
Unemployment claims can have an impact on your insurance in various ways. In general, if you receive unemployment benefits, you may be eligible for certain insurance coverage or benefits that can help you financially during this time.
For example, you may be eligible for COBRA. This allows you to continue your employer-based health insurance coverage for a limited time after losing your job. Additionally, some states offer unemployment insurance. This can provide financial assistance for your living expenses. Some insurance companies may also offer discounts or special programs for individuals receiving unemployment benefits.
However, it is important to note that unemployment claims can also affect your ability to obtain certain types of insurance, such as life insurance or disability insurance. This is because some insurers may view unemployment as a higher risk. It would be best to consult with an attorney to understand the specific impact of unemployment claims on your insurance coverage.
How Does it Affect the Insurance Industry?
As more people enter the workforce, it is not uncommon to see an uptick in new claims as some individuals experience job loss or transition to new positions. The increase in initial unemployment claims in Minnesota could have a ripple effect throughout the insurance industry. And this may lead to higher premiums for consumers and increased demand for certain types of insurance policies, such as:
- Health insurance
- Disability insurance
- Life insurance
- Worker’s compensation
- Business interruption insurance
But while the increase in new claims in Minnesota is a slight cause for concern, it is important to keep things in perspective. With the state’s unemployment rate remaining low, the Minnesota economy remains healthy and vibrant.
Established 100 years ago, Quinlivan & Hughes ranks among the oldest and one of the largest law practices in Central Minnesota. The full-service law firm has growing legal teams in the areas of employment law, business law, government law, insurance defense, trust and estate planning and general litigation. Learn more at Quinlivan.com.
