Now it is good news for unemployed persons because the rate of Wisconsin Unemployment Rate has been decreased. The decreased rate will result in more jobs opportunity.
The frauds in Wisconsin unemployment program have risen. For the year 2009, Wisconsin unemployment fraud stood at $17.7 million. In April, the rate of Wisconsin’s state unemployment has been decreased. According to officials, around a massive 16,400 jobs were added. In over a decade, this was the largest one-month gain. Over 32,000 jobs have been added by the state in the first four months of 2010.
The evidence gestured the state’s continued economic recovery said by department of Workforce Development Secretary Roberta Gassman. Presently, the state unemployment rate is at 8.5%, down 0.3% from March. It is well below nation’s unemployment rate at 9.9%. The unemployment insurance program has been hit by fraud charges which is part of the Wisconsin unemployment program. The down slide has further contributed this in economy.
To help refill state’s unemployment fund, federal money is continued to borrow at a record pace by Wisconsin. Wisconsin’s unemployment debt has reached $1.42 billion, confirmed by the state Department of Workforce Development. The projected deficit will be nearly $2.9 billion by the end of 2011.
The president of the Wisconsin Taxpayers Alliance Todd Berry said, “Not controlling our expenses, nor having enough money in reserve, combined with this economic downturn, has put the state in a bind“.
An average of $290 is paid a week to the jobless people by Wisconsin unemployment benefits. Employer taxes fund it. Higher taxes and lower benefits could be seen by Wisconsin taxpayers if once the fund is depleted.
More than two dozen states are wrestling with similar shortfalls, including North Carolina, Texas and California. Interest on unemployment debt through 2010 is forgiven by the federal stimulus law, but starting in 2011, about 5 percent annual interest would be owed by Wisconsin, which could equal more than $100 million a year.
Wisconsin employers will be eventually taxed to repay the debt by the federal government if nothing is done to pay off the loans. Berry said, “When this happened in the early ‘80s, it took a bipartisan group to figure a way out of the problem”. “That will probably be the case again.”