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New York unemployment fund nears insolvency as claims skyrocket

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  1. skybrian
    From the article: [...] [...]

    From the article:

    New York’s unemployment insurance trust had about $2.7 billion at the end of 2019, less than half the minimum needed to remain solvent during a recession, according to the U.S. Department of Labor. With claims skyrocketing, the state has enough money to cover the checks for about 10 weeks, according to an estimate by the Tax Foundation, a Washington-based think tank.


    New York’s trust fund had a solvency level of 0.36 as of Dec. 31, where a level of 1.0 means the state could pay out claims for a year at the average level of the worst three years of the past twenty, according to the U.S. Labor Department. California, Texas, New York, Illinois, Ohio and Pennsylvania are among the 22 states and jurisdictions that do not meet the recommended standard of solvency. Only California’s unemployment trust fund is in worse shape than New York’s, according to the department.


    “The state will have to borrow from the federal government, and will ultimately have to pay back those loans with interest, while New York employers will eventually face higher federal unemployment insurance taxes to compensate the federal government for extending loans to the state,” Walczak [a director at the Tax Foundation] wrote.