State Unemployment Insurance Trust Funds

Could states afford jobless benefits if another recession hits?, By Jake Grovum, April 22, 2015, Stateline: “Tens of billions of dollars in debt. Cuts to jobless aid that have been called ‘historic and disturbing.’ Unemployment insurance trust funds that are still clawing their way back to solvency.  This is the Great Recession’s legacy for the nation’s unemployment safety net. The sustained downturn and spike in joblessness stressed state programs to an extent not seen in decades, requiring emergency federal aid. Now, unemployment nationwide has fallen to 5.5 percent and the amount of unemployment benefits paid in the states has dropped to pre-recession norms in many cases. Federal jobless aid to extend benefits expired last year.  Yet many state unemployment insurance trust funds still face a deficit. Those that are in the black often have balances below pre-recession peaks. And many states are paying less in benefits. The result is a safety net significantly weaker than it was before the recession…”

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