Photo: Marie D. De Jesús, Houston Chronicle / Staff Photographer Photo: Elizabeth Robertson, MBR / TNS

Unemployment claims nearly doubled last week, surging to nearly 276,000 as measures to slow the spread of the coronavirus shutdown wide swaths of the economy, and jobs in sectors from retail to restaurants to energy evaporated.

More than 400,000 Texans have filed applications for benefits in two weeks since the shutdowns began, but that number likely understates the extent of job losses in the state as overwhelmed websites and phone lines prevent an untold number of people from filing claims. On a single day last week, 1.7 million calls jammed phones lines, according to the Texas Workforce Commission, which administers the unemployment benefits in the state.

Among those struggling to get through was Muhammad Ali, a Houston Uber and Lyft driver, who was forced to stop driving out of fear of infecting his wife, 10-month-old daughter and two-elderly parents, whom he financially supports. It took him four days of phone calls and website visits before he was finally able to file a claim Saturday.

Now, he worries how long it might take before a check will arrive as his saving rapidly dwindle.

“Whatever savings I have, I’m using it,” he said. “Now, I’m on to credit cards. I have good credit, but I’m going on to the point where I’m going to destroy that.”

Photo: Houston Chronicle

Nearly 276,000 Texans filed for first-time unemployment benefits last week, U.S. Labor Department said Wednesday, nearly double the record 156,000 filed in the previous week.

How to apply for unemployment assistance You should apply for benefits as soon as you are unemployed or underemployed. Those who are self-employed, independent contractors and part-time workers will be eligible under the new stimulus package. Go to ui.texasworkforce.org or, if you do not have internet access, call 1-800-939-6631 Monday-Friday 8 a.m. to 6 p.m. central. or Saturday from 8 a.m. to 5 p.m. Log on with an existing TWC User ID or create a new user ID. You will need: A Social Security number or Alien Registration Number Last employer’s business name and address First and last dates you worked for your last employer Number of hours worked and pay rate if you worked this week (including Sunday) Information about your normal wage A tutorial on how to apply for benefits can also be found at ui.texasworkforce.org. How to get free legal aid A toll-free legal assistance hotline for low-income families and individuals in Texas who are confronted with civil legal problems as a result of the pandemic is available by calling 800-504-7030 to be connected with legal service providers in their area.

Nationally, more than 6.6 million people filed for unemployment benefits last week, doubling the 3.3 million filed the previous week as labor market undergoes a collapse rivaling that of the Great Depression.

LAST WEEK: ‘Exponential’ increase in jobless claims overwhelms state’s capacity

Nancy Vanden Houten, a lead economist for Oxford Economics, wrote in an analysis that the initial jobless claims are “incomprehensible” but may very well be the “new normal” for at least a few more weeks. Oxford Economics forecasts that the pandemic will push job U.S. losses past 20 million, resulting in an unemployment rate of at least 12 percent.

The early claims data almost certainly fails to capture the extent of job losses, she said in an analysts note to clients.

“States may be understating claims as states struggle to process the staggering number of new claims,” Houten said.

Unemployment agency overwhelmed

The flood of claims last week continues what state officials called an “exponential” growth in the number of Texans filing for benefits. State officials have urged patience.

The Texas Workforce Commission has said it has hired people to staff the overburdened call centers, upgraded and re-upgraded its websites, and added call line capacity. It even added a new chatbot named “Larry” to answer common questions about unemployment benefits.

It’s still not enough. Weeks after the first reports of trouble getting through the phone lines and websites, thousands of Texans are desperately airing their stories on social media, pleading with the agency to let them talk to a person who can help them fix their account to file their claim.

“You would have a better chance of reaching out to aliens than to the officials of the state of Texas (about unemployment),” Ali said. “There are no clear messages.”

The TWC issued a statement about the stimulus package on Wednesday, clarifying that the self-employed and those who work reduced hours may be eligible under the new law. The agency also clarified in a separate statement that it would backdate unemployment claims to the date workers lost jobs, not the date they sent their application, a change to its usual policy.

“We are working night and day to meet the huge demand from unemployed workers and businesses who have been affected by the economic impact of COVID-19,” TWC Chairman Bryan Daniel said in a statement.

UNEMPLOYMENT CLAIMS: Jobless claims in Texas expected to surpass all of 2019 in matter of weeks

Other states have implemented crowd control measures to try to keep up with claims. Colorado, for example, limits those applying on Sunday, Tuesday or Thursday to those with last names from A to M. The rest of the days of the week are for N to Z, except Saturday, which is split between the two halves of the alphabet.

Many of the people calling are confused about how to apply under the new stimulus package if they were previously ineligible. Colorado, to address the confusion, provides a guide as to who should apply for what and how, outlining 10 different scenarios, including guidance to gig workers to hold off on applying until potential issues with processing the applications are addressed.

Pennsylvania also issued new guidance to the jobless stating, “Don’t call or ask about eligibility, just file,” to try to cut down on the backed-up phone lines. It instructed its gig workers to wait for further instructions.

In Texas, the guidance on the TWC website advises workers to try the portal “between 10 p.m. and 8 a.m.” but offers no instructions for independent contractors and self-employed, other than stating that those people “may” be eligible under the new law.

Sarah Tucker-Ray, a partner at McKinsey & Co. in Washington, D.C., said states should streamline applications and identify common issues that can be easily addressed online to speed the claims process.

“Each day matters to get money into our economy,” she said.

In limbo

While the jobless anxiously sit home, watching bills mount and groceries dwindle, officials have attempted to reassure the public that they will get paid — eventually.

“You’re not going to be denied your claim, simply because you’re having a hard time getting through,” said Gov. Greg Abbott to the media on Wednesday.

It’s simply not enough reassurance, said Syed Hasan, an Uber and Lyft driver who lives in Cypress.

“How are people going to survive?” asked Hasan, who lives in Cypress, who notes he was hardly making ends meet on the gig work before the rides disappeared. “We all have bills.”

At first, Hasan and Ali, who are friends, couldn’t submit claims at all because. as gig-workers, they didn’t qualify as employees. Now, they can submit a claim, but it doesn’t feel like the benefits are coming anytime soon.

GIG ECONOMY: Houston rideshare drivers worry as coronavirus panic drives down business

When everything is going to plan, the average wait time for Texas to disburse unemployment benefits from the time an application is submitted is 21 days, according to the Texas Workforce Commission.

In Texas, unemployment benefits range from $69 per week to a maximum of $521 per week, with an average of $246 per week. The pandemic assistance program included in the stimulus package gives those who lose jobs due to the pandemic an additional $600 per week on top of whatever the state provides.

That would be enough to cover Ali and his family, but it appears a long way off. With reality setting in, he applied for Supplemental Nutrition Assistance Program benefits — it was the last thing he wanted to do, he said.

“I had no choice,” Ali said. “These next two or three weeks are going to be very tough.”

erin.douglas@chron.com

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