SOSMass

Save Our State of Massachusetts

Unemployment & Jobs

The unemployed in Massachusetts enjoy the most generous benefits in the nation.  They receive the highest amount in payouts for the least amount of qualifications, and for the longest period of time.  That comes as no consolation to the majority of unemployed, most of whom would receive higher wages, and would rather be, gainfully employed.

But just imagine what it does to the employer, and the prospects of job growth.  Unless Unemployment Insurance is frozen at 2010 levels, (an already difficult level for some employers to meet, and yet strictly enforced by government), Massachusetts employers will face a 40% increase in their UI costs. 

This is a serious situation for many employers who are either struggling to survive in this economy, or finding it difficult to retain employees, let alone add them and grow their businesses.  Gas prices trending ever higher serve to stretch these limits further, and threaten to make doing business, in Massachusetts in particular, all the more difficult in this environment.   These are hard times for employers and the unemployed alike, and Obamacare hasn’t yet begun to take its toll.  SEE:  You CANNOT fix this. 

The Pioneer Institute and the Massachusetts High Technology Council are pleased to present a new study, Creating Jobs: Reforming Unemployment Insurance in Massachusetts, that provides four fixes to the system that will generate 10,000 new jobs and $7.5 billion in economic growth over the next decade.  To read more details, click here for the press release and here for the report.

Meanwhile, if you’re fortunate enough to work in the public sector, you won’t get laid off if you’re the Governor or legislator, but you will get wacked a whopping 0.5% off your salary each year.  That amounts to about $600.00 per year for the Governor, and approximately $300.00 for the average legislator’s salary.  This after a 5.5% raise only two years ago when the recession was just starting to take hold. 

Let’s not even talk about the unions and pensions.  It’s all about the economy, and job creation . . . and free tuition for illegal immigrants.

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One comment on “Unemployment & Jobs

  1. jm
    February 13, 2011

    This is an excellent article. It sounds like it’s way past time to reform the Unemployment Insurance System in our state–and the Pioneer Institute presents some facts to prove it!
    Perhaps it’s also an opportune time to call our MA State Representatives and Senators on Beacon Hill about just such a reform. Since this will probably be a “hard sell” for many of them, it might be well to remind them that Pioneer Institute is an independent, non-partisan, privately funded research organization that compiles data-based reports, and that the Institute has indicated in its report on MA State Unemployment Insurance that the MA UI system is not only the most costly in the nation, but the most generous in relation to eligibility and duration.
    Additionally, the Institute indicates that the MA UI system is an “inhibitor to job creation”–something NO state, particularly MA, needs in any economy–especially this one!
    While most people don’t begrudge assistance to the unemployed, many do question a “budget busting”, overly generous system that not only doesn’t encourage job creation to get these people back to work, but doesn’t address the needs of ALL of its unemployed. When one is reminded of the thousands of unemployed independent contractors in our state who WERE NOT, ARE NOT, & WILL NOT be eligible for ANY state UI benefits (while WITHOUT AN INCOME just like those who ARE eligible) the “big picture” is seen in a slightly different perspective. These should all be some effective, initial “talking points” with legislators.

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