By Jonathan Shorman
Tribune News Service
TOPEKA — Unemployment claims in Kansas have soared more than 600 percent in one week as the coronavirus has slowed or shut down large swaths of the state economy.
At least 11,355 claims were filed this week, Kansas Labor Secretary Delía García disclosed Friday. That’s up from 1,820 claims last week.
“We are in uncharted waters right now,” García said.
The growing numbers suggest employers across the state are already moving to layoff workers as reported cases of the coronavirus mount. Kansas is experiencing “substantial increases” in claims every day, she added.
Individual cities and counties have imposed extraordinary restrictions to fight the spread of the virus, including limiting gatherings to 10 people and closing bars and restaurants to dine-in service.
Statewide, Gov. Laura Kelly has banned gatherings larger than 50. All of it combined is inflicting potentially fatal damage on countless businesses across the state.
“While our top priority is to keep Kansans safe and healthy, there’s no question that these major disruptions to our daily lives pose a serious economic threat to Kansas businesses and workers,” Kelly said at a news conference.
Kelly’s administration on Friday announced multiple initiatives aimed at cushioning the blow to business. The state has applied for small business disaster loans from the federal government and is expected to receive approval by Saturday.
That would open up loans of up to $2 million to small businesses across the state.
The Kansas Commerce Department also announced a rapid-loan fund of up to $6.3 million that communities across the state will able to deploy to local businesses in as little as two days.
The Commerce Department is creating a relief fund for the hospitality industry that will make $20,000 loans available to qualifying businesses. The fund will contain $5 million.
“We feel that these loans funds can be a stabilizing force for this critical sector of the Kansas economy,” Commerce Secretary David Toland said.