Do you know who pays for unemployment insurance? Employers. While the federal government argues about how much people out of work should get, we should keep in mind who will ultimately pay the tab because unemployment insurance is about to go through the roof.
During the 2007-2009 recession, the Wall Street Journal estimates that employers’ unemployment insurance costs went up by a staggering 73%! There is no reason to think this won’t happen again given that unemployment numbers have tripled and extra stimulus is still being doled out under President Trump’s executive action. The extra money will dry up this week but those on unemployment will still receive their regular amount. The costs passed down to employers will undoubtedly have a domino effect on employment and whether some businesses can stay open. Yelp has already reported that more than 70,000 businesses previously listed on their site were permanently closed by July.