David Y.Ige | DLIR PRESS RELEASE: Unemployment Trust Balance Increases to $205 Million

DLIR PRESS RELEASE: Unemployment Trust Balance Increases to $205 Million

Published on November 4, 2022 in Latest news from the department, Press room

HONOLULU – The State of Hawaii Department of Labor and Industrial Relations (DLIR) today announced that the Unemployed Compensation Trust Fund (UCTF) balance is $205 million. Due to the unprecedented volume of unemployment insurance claims resulting from the COVID-19 pandemic, $600 million from the UCTF was quickly depleted and $847 million of federal pandemic funding was used to avoid that employers pay accrued interest on US Department of Labor loans. (Title XII).

“DLIR has paid nearly $6.5 billion in unemployment insurance benefits and assistance as a critical part of the safety net during the COVID-19 pandemic,” Governor David Ige said. “With the assistance of the Legislative Assembly, we have minimized significant impacts to our business community and managed the fund to a positive balance.”

Hawaii’s Unemployment Insurance (UI) program is funded exclusively by employers through state and federal payroll taxes. The system is designed to replenish the unemployment insurance fund during periods of economic growth in anticipation of high unemployment during recessions. Payroll taxes go up and down depending on the state of the unemployment insurance safety net. Currently, other states owe the US Treasury billions for unemployment insurance loans, including California at $18 billion and New York at $8 billion. Employers in these states pay escalating rates of federal unemployment insurance taxes to cover loans and interest, up to a maximum of $420 per employee per year.

“Governor. Ige has also allocated $42.5 million to expand the Hawaii Unemployment Insurance Modernization Project (HUI-MOD),” said Anne Perreira-Eustaquio, Director of DLIR. of the scope of the HUI Mod project to replace the aging core system strengthens the user interface safety net and prepares it for the next economic downturn.”

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Check out DLIR’s press releases:

http://labor.hawaii.gov/blog/category/news/

Media Contact:

Bill Kustman

Ka`Oihana Pono Limahana

Department of Labor and Industrial Relations

(808) 586-8845

[email protected]

http://labor.hawaii.gov

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