Unemployed hurricane victims might deplete assistance resources prematurely absent this federal backing
At the moment, individuals in North Carolina are only eligible for a maximum of 12 weeks of state unemployment assistance, which ranks amongst the smallest durations across the nation. Hampton, who oversees Asheville, believes that an extra 14 weeks of federal funding would be "essential" for assisting jobless workers in the hospitality sector to endure the sluggish winter period. Hampton hopes that Asheville's restaurants, bars, and breweries will have resumed operations before the tourist season kicks off next year.
Hampton emphasized that "people need to be assisted throughout the recovery process since we won't be fully reopened for some time." She estimates that around three-quarters of Asheville's food and beverage workforce have been laid off. According to Hampton, it might take until March of the following year for the city to reach a stage where employment could be stable and secure again.
Federal Disaster Unemployment Assistance, or DUA, serves as a vital element of the nation's aid package for individuals affected by hurricanes, wildfires, and other calamities. DUA can provide up to 26 weeks of benefits, which is the standard duration for most state unemployment insurance programs, to individuals who have lost their jobs, been injured, or lost the ability to reach their workplace due to a catastrophe. (Applicants must first exhaust their state unemployment benefits before qualifying for DUA.)
In disaster-stricken states like North Carolina, Florida, and Georgia, DUA ensures that survivors have more time to secure employment than what state programs could afford. For instance, Florida offers benefits for up to 12 weeks, and Georgia provides up to 14 weeks of benefits.
Additionally, disaster unemployment benefits are available to various workers who do not qualify for state unemployment insurance, such as gig workers, farmers, and the self-employed.
Michele Evermore, a senior fellow at The Century Foundation, expressed that "significantly more people will be eligible for DUA than we might realize since they are independent workers or have their own businesses."
Approximately 30,500 initial jobless claims were filed in North Carolina following Hurricane Helene's devastation in late September, according to the state's Division of Employment Security. This number represents a substantial increase from the average of 3,400 jobless claims filed in 2024.
Approximately 19,200 of these claims are related to the disaster, with more than $1.6 million in benefits already paid as of October 17. Over 5,600 of these disaster claims are for federal unemployment assistance, which, if approved, would offer a safety net for those who would otherwise not be eligible for state benefits.
In an effort to aid hurricane survivors further, Gov. Roy Cooper recently issued an executive order that increases the weekly benefit by $250, to a maximum of $600, until North Carolina's state of emergency ends. Normally, the maximum benefit amount is $350 a week, placing North Carolina amongst the states with the lowest benefit amounts, Cooper's office stated in a press release.
However, securing either state or disaster unemployment benefits poses challenges for the newly jobless, particularly those whose homes and businesses have been badly affected or destroyed by storms. They may lack the necessary records or encounter connectivity issues due to spotty internet service. Additionally, high volumes of claims can temporarily overwhelm state systems, making it challenging to submit applications or receive a response.
Miranda Escalante, a bartender at the Flat Iron Hotel in downtown Asheville, took five days to apply for unemployment assistance. Escalante experienced internet connectivity issues at home and was unable to navigate the state's Division of Employment Security website effectively when she tried using public internet sources. Her application process was further delayed by lengthy wait times on the phone.
Escalante and her husband, Alex Smith, who worked as a server at an Asheville restaurant, are still waiting for their applications to be approved, as is the case for the majority of their acquaintances. Until that happens, they are surviving on their last paychecks, some Federal Emergency Management Agency aid, and meals provided by organizations offering free meals.
Escalante, a 20-year resident of Asheville, can't envision living anywhere else. The unemployment benefits would give the couple more time to attempt to regain their jobs if approved.
Realizing that individuals in disaster-declared areas might not have internet access, the Division of Employment Security established a dedicated Disaster Unemployment Assistance hotline within 24 hours. The service is available in both English and Spanish and offers extended hours throughout the weekend, the agency said in a statement to CNN. Wait times typically average 15 minutes or less.
"People are filing claims daily, and those are being processed as quickly as possible while adhering to the eligibility review process required by law," the agency noted.
Reducing state benefits
Before 2009, every state offered at least 26 weeks of regular state benefits to individuals who lost their jobs, according to the Center on Budget and Policy Priorities. However, due to an increase in layoffs during the Great Recession, several states opted to rebuild their unemployment trust funds by reducing benefits rather than imposing higher taxes on employers, Evermore stated. In recent years, more states have followed this trend in the wake of the economic upheaval triggered by the Covid-19 pandemic.
Currently, 13 states provide less than 26 weeks of benefits, with maximum durations ranging from 12 weeks to 21 weeks, according to the center. Some states add additional weeks if their unemployment rates climb higher.
In North Carolina, unemployment benefits can stretch up to 12 weeks when the unemployment rate is under 5.5%, but if it rises to 9%, individuals can collect benefits for an extended period of 20 weeks. As of August, the unemployment rate was at 3.8%, as per the US Bureau of Labor Statistics' recent data.
The recovery of Asheville's once-prosperous hospitality sector is yet to be determined. A significant number of restaurants and breweries were devastated by the hurricane, Hampton mentioned. Despite three weeks passing by, the city continues to grapple with undrinkable water, creating challenges for the resumption of operations for the remaining eateries.
Additionally, October is typically the peak tourism season in Asheville, with visitors coming to witness the vibrant fall colors. Regrettably, this year, the scenes of changing leaves will be absent. Many establishments rely on the revenue generated during this period to sustain themselves through the less crowded winter months.
"Asheville is unique due to its multitude of independent restaurants," Escalante pointed out. "I'm unsure which restaurants will recover."
Hampton highlighted the importance of DUA, stating that it can provide up to 26 weeks of benefits, which is essential for individuals whose state unemployment benefits have expired. Despite North Carolina only offering 12 weeks of state unemployment assistance, disaster-stricken states like North Carolina can rely on DUA to ensure survivors have more time to secure employment.
With the hospitality sector being heavily affected by the hurricane, Hampton stressed the importance of federal assistance, such as DUA, to help workers in the industry survive the sluggish winter period and potentially lose less businesses due to their inability to endure the financial strain.
