Reducing Unemployment Insurance Would Mean 13,080 New Jobs
(Boston, MA- Feb. 24, 1997) -- Adoption of a proposal to reduce unemployment insurance contributions paid by Massachusetts employers would result in the creation of 13,080 new jobs for the state. This is the finding of the Beacon Hill Institute at Suffolk University.
The proposal would bring unemployment benefits in Massachusetts in line with those in other states, easing the cost of doing business in the state, while at the same time making the state more competitive by reducing the cost of creating jobs.
Massachusetts employers face the second highest unemployment insurance cost per employee in the nation. The limit for receiving maximum benefits, 30 weeks, is the most generous in the nation. The prior work requirement, 15 weeks, is lower than that of 43 other states. Massachusetts is one of only 12 states offering dependent benefits.
Aligning the Massachusetts program more closely with other states would save Massachusetts businesses $82 million in 1997.
The Beacon Hill Institute used its dynamic, econometric state tax-analysis model in performing its calculations that show the proposed reform would generate approximately 13,080 jobs for the state.
The Beacon Hill Institute conducts economic research on public policy issues affecting Massachusetts citizens and businesses.
NOTE: The Beacon Hill Institute can arrange interviews to facilitate your coverage. Call Ellen Foley at (617) 573-8750.
Last update: 2/24/97
Revised formatting on 02-Jul-2003 3:13 PM
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