Andy Medici of The Playbook reported in the Portland Business Journal this week that the Covid pandemic has led to a significant depletion of available funds for unemployment. As a result, unemployment tax rates among the States have already been increased from 1.72% in 2020 to 2.3% in 2022. For some historical perspective, UI rates rose to about 3.5% in 2013, following the “Great Recession.”
Oregon’s unemployment system came under tremendous pressure during the sudden onset of claims due to Covid-19. The existing computer system was overwhelmed by the number of claims causing some beneficiaries to have to wait months for their initial benefits. However, Oregon’s UI Trust Fund has recovered completely from Covid and had an estimated positive balance of $5.3 billion as of November 30, 2022.
Since unemployment insurance rates are based at least in part on how many claims are made against a business, the article also provides some advice about handling those claims.