An overview of the effects of unemployment on the hawaiian economy
Thirty-three states pass this measure of solvency.
All state UI programs impose payroll taxes on employers to finance their UI benefits. Even during non-recessionary periods access to UI benefits remains problematic.
Lee Hansen and James F. We find that eight states and Washington, D. Topics in Unemployment Insurance Financing.
A sales executive with a family to support and bills to pay has been unable to find full-time work after six months of unemployment. Thus, a society with a relatively high proportion of relatively young or old workers will tend to have a higher unemployment rate than a society with a higher proportion of its workers in middle age.
In addition, most of the states that failed on benefit adequacy have adequate trust funds.
Hawaii department of economic development
This measure gives a complete picture of the total tax burden. If the wage base is not increased, benefit payments will increase while tax revenues remain stagnant, paving the way for trust fund insolvency. There are even problems for those who actually qualify for benefits. Those that do collect benefits find that they are inadequate to make ends meet and that they run out before most workers find a job. Two trends have been particularly important. In this fashion, we score states by combining their trust fund balances with a rough reckoning of their UI tax efforts Table 6. Recent research by Jonathan Gruber indicates that nearly one-third of U. For example, if a worker who loses a job is guaranteed a generous package of unemployment insurance, welfare benefits, food stamps, and government medical benefits, then the opportunity cost of being unemployed is lower and that worker will be less eager to seek a new job.
based on 63 review