Businesses Pay More for Those Without Jobs in Connecticut
Sunday, January 4th, 2009Finding a job in Connecticut may get somewhat harder in the near future, due the fact that businesses might be required to pay higher unemployment taxes this year. State officials are currently planning on having employers shell out an additional 1.4 percent in jobless dues.
The reason bureaucrats are considering this course of action is because, due to rising unemployment, the fund for job seekers is becoming severely depleted. Since more and more people are collecting these benefits, government has found itself signing more checks than current taxes allow them to be able to afford.
When employers have to pay higher taxes they have less money available to spend on hiring new workers. Since budgets are already tight at the moment, this could cause Connecticut jobs to become more scarce.
According to the State Labor Department’s director of program policy George Wentworth, the government is expecting to sign $690 million dollars in checks to those who are unable to find Connecticut jobs this fiscal year. During the same time, the fund will only take in around $540 million if taxes are not increased. At this time, there is only about $465 million in the trust.
Currently officials have stated that they are not worried about running out of money for the unemployment. Despite this, they have said that they may have to take out several short-term loans if the economy does not improve in the near future.
During November the state’s unemployment rate rose to 6.6 percent, which means that Connecticut currently has the highest proportion of joblessness that it has in the last 15 years. Although there was a rise in unemployment, Connecticut continued to fair better than the national average, which was 6.7 percent for that month.
Approximately 5,100 jobs were lost throughout the month. At this time the state’s unemployment offices are issuing checks to around 80,000 claimants each week. This is a 50 percent increase since 2007. The most each job seeker can currently receive is $519 a week.