The National Federation of Independent Business (NFIB) has responded to the recent increase in Massachusetts’ weekly unemployment benefit, following an announcement by the Department of Unemployment Assistance. Christopher Carlozzi, NFIB’s Massachusetts state director, voiced concerns about the impact on employers.
“The unemployment insurance crisis just keeps getting worse for the state’s employers,” said Carlozzi. “Massachusetts not only has the easiest qualification standards and the longest duration to collect at 30 weeks, it has the second highest weekly benefit in the nation at $1,105.”
A state law triggered by Springfield’s 5.2% unemployment rate now allows recipients to collect up to 30 weeks of benefits across Massachusetts. State data shows that more than one-fifth of current claims come from higher income earners. The Department of Unemployment Assistance projects that due to rising unemployment rates, the state’s UI trust fund will reach a $134 million deficit by late 2027—an accelerated timeline compared to earlier estimates.
Carlozzi added: “The current UI system is a recipe for disaster with the cost burden unfairly falling squarely on the shoulders of Massachusetts’ employers. Lawmakers must take a leadership role by enacting real reforms to eligibility, benefits, and duration, while providing funds to shore-up the trust fund to prevent massive tax hikes on small businesses across the Commonwealth.”
Massachusetts employers are responsible for nearly $5 billion in pandemic-related unemployment insurance debt; this includes $2.1 billion attributed to a state accounting error. The maximum weekly benefit is now $1,105 per week for up to 30 weeks after one of seven metropolitan areas surpassed a 5.1% unemployment rate last April.
In response, NFIB launched radio and digital advertisements urging legislative reform of what it calls a broken unemployment insurance system. Further details about their campaign can be found at ProtectMassachusettsSmallBusiness.org.
For over eight decades, NFIB has represented small and independent business owners nationwide as a nonprofit and nonpartisan organization focused solely on advocating for these businesses since its founding in 1943.
