Running a profitable business requires control over a number of aspects, including unemployment insurance costs. For employers, a high turnover rate and a rising number of claims can put a damper of yearly profits, so it is understandable that managing these expenses is a top priority.

Thankfully, improving economic conditions and a stronger labor force can remove some of that burden. As the nation recovers, there can be a lower chance of an unskilled workforce and a shortage of potential employees. Recently, information from both the U.S. Department of Labor and the U.S. Bureau of Labor Statistics has been encouraging.

According to the DOL, the beginning of July has seen the advance figure for seasonally adjusted initial unemployment claims decrease 11,000, compared to the previous seven-week period. For the week ending July 5, the total was only 304,000. The four-week moving average also ticked down 3,500 claims lower to a total of 311,500. In addition, the insured unemployment rate stayed at 1.8 percent at the end of June, unchanged from the last report.

The DOL noted that the largest increases in claims on a state-by-state basis were in New Jersey, Massachusetts, Connecticut and Michigan. The highest insured unemployment rates belonged to Alaska at 3.4 percent, Pennsylvania at 2.9 percent and Connecticut at 2.8 percent.

Employee turnover remains steady
Naturally, the more workers that become unemployed, the higher the likelihood of unemployment claims. According to a recent BLS report, this turnover rate – including quits, layoffs and discharges – has been relatively steady over the past several months.

For example, there were 4.5 million separations in May, the BLS explained. The quits rate didn’t change from April to May, staying at 1.8 percent, while the layoffs and discharges rate hit 1.1 percent for the month. On the other end of the spectrum, there were 4.7 million new hires during that month. Many of the nation’s industries also experienced an uptick in the number of job openings on a yearly basis.

All in all, these trends can be viewed as a positive for employers. As the country starts to see lower unemployment claims and an improving labor force, there is a chance that the associated costs could start to decrease as well.

Juggling tax rates and difficult employees can become challenging at your company. Here at Corporate Cost Control, we understand these problems and are well-positioned to help. Our extensive background in cost control and human resources will allow you to better manage your unemployment insurance expenses.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

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