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Only 17 States Still Have Unemployment Compesation Funds Left

January 22nd, 2010 · No Comments

Tags: Government News · Layoffs Closings

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Times are bad everyone understands this but when you lose your job due to no fault of your own States are suppose to help you by paying a portion of your previous income until you can find another job.

Every State is different but the basic way it works is employers pay into a trust held by the state and when there are layoffs or closings the company notifies the state and payments are made from the unemployment compensation for a period of weeks.

The system is often slow but it is better then nothing when you can not find work.

Reports are now starting to show most states especially those states with large populations are long past insolvent.

Much of the money that employers have been contributing to the unemployment funds have been wasted and spent on general projects.

As of January only 17 states are still above the insolvent line with money left in their compensation fund however many of those states are only weeks away from having no money to pay unemployed workers.

The worst offenders are the ones you would expect to be wasteful.

California ranks at the top with approximately 6.5 billion already borrowed from the federal government.

States like New York, Michigan and Pennsylvania which ranks #4 with over 2 billion borrowed have had an extremely liberal leadership (Gov Rendal is former National Democrat Party Leader) in the past decade are also extreme offenders.

What does this mean for you as a job seeker?

Thirty Six States have started raising the cost to the employer when they make new hires and to cover current employees. The cost per employee has gone up from a few hundred to over a thousand dollars per person.

Only six states have froze the cost of unemployment compensation programs to the employer.

This means finding a job is harder then ever when the cost to the employer are skyrocketing.

This at the same time when we are hearing of pay increases and larger staffs at government institutions.

Dramatic cutbacks need to begin in our local, state and federal government offices.

Unemployed workers can not be made second place to feel good programs that are not the core of what government is suppose to provide.

Should your neighbor be allowed $5000 off a new car or $15,000 on a house while your family is unemployed and can’t get basic services?

We are not quite at the tipping point yet where people will demand that their local school superintendent not be paid on national average $250,000 or more a year while the people paying their salary earn on average $43,000 but that day is soon to come.

Can we pay Billions of dollars every year to support Sports teams and stadiums while players are paid tens of millions of dollars and the average person can not afford to watch them play?

These and many more questions need to be asked but when honest people lose their jobs through no fault of their own they deserve to be compensated when they and their employer have been taxed and forced to pay for unemployment compensation programs mandated by the government.

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