Nearly Half of States Can't Fulfill Unemployment Requests As states scramble to field a record number
of unemployment insurance claims, a
Labor Department report has found
rampant underfunding. According to the report, unemployment insurance trust funds in nearly half the states were underfunded as recently as February. An unprecedented 6.6 million people filed unemployment insurance claims
in the past week. States are supposed to build up their reserves during economic expansions in preparation
for recessionary periods. The Labor Department report suggests that many states did not do enough to prepare for even a more mild economic recession. Additional support from the federal government may be needed in addition to the recently passed
$2 million stimulus package.
