Connecticut Resources

Unemployment Trust Fund goes broke, businesses on the hook

From NBC Connecticut.

The coronavirus pandemic has had a devastating impact on Connecticut’s workforce. A record number of people have filed for unemployment this year and hundreds of thousands of residents are currently collecting those benefits.

As a result, the unemployment insurance trust fund has run dry and the state is borrowing hundreds of millions of dollars from the federal government to pay claims.

“The state takes out the loan, but it’s actually businesses that pay it back with interest. In fact, significant interest,” Eric Gjede, vice president of government affairs for the Connecticut Business and Industry Association, said.

See the complete article from NBC Connecticut online.