Minnesota’s unemployment insurance fund is running dangerously low

politicsinminnesota.com reported that:

The wretched economy is laying waste not only to the state’s general fund budget, but its unemployment insurance (UI) trust fund as well. 

At the end of 2008, the fund that pays Minnesota unemployment claims stood at $508 million. According to U.S. Department of Labor calculations, that represented reserves equal to about four months (0.34 years) of average payouts in a normal recession. In more adverse conditions–like those we’re experiencing now–it’s closer to three months (0.28 years). These metrics are the Department of Labor’s main solvency measures for state UI trust funds, and a year’s worth of reserves is generally deemed healthy. The Minnesota figures placed the state’s unemployment trust fund at 35th and 31st in the nation, respectively, by the DoL standards.

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25 Responses to “Minnesota’s unemployment insurance fund is running dangerously low”

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