Managing Your Money

Unemployment insurance costs to climb 40 percent

A recent report from the Associated Industries of Massachusetts (AIM) shows another setback for businesses in this state. Starting January 1, 2011, employers are projected to face a 40% increase in unemployment insurance costs. The average unemployment insurance costs are expected to increase from $646 to $904 per employee. This is the maximum rate increase allowed under current law. Last year, rates increased by an average $111 per employee.

Massachusetts has the highest unemployment insurance costs in the country. AIM and other groups have proposed reforms to help lower the burden and close loopholes in the current system. Neither the Patrick administration nor the legislature have made much effort to address the high costs and weaknesses of the system.

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