On a yearly basis, employers are on the hunt for ways to reduce their unemployment insurance tax burden. While cutting back on terminations and other factors within the company will help, one of the best ways to see a reduction is through improvements to a state’s unemployment insurance trust fund.

And, in Arkansas, it appears that this is exactly what is happening. A state’s trust fund is used to back unemployment benefits, and following the economic downturn, many ended up in debt as a surge in jobless claims were made across the country. Now that conditions have improved, however, these trust funds are returning to solvency.

Arkansas reports trust fund gains
According to a news release from the Arkansas Senate, the state’s unemployment insurance trust fund has made significant gains over the past several years, and its debt to the federal government could be totally resolved by the end of 2014. If this occurs, that would mean lower tax rates for the state’s employers are coming soon.

Only a few years back, Arkansas’ unemployment debt was as high as $360 million, thanks the recession and a high number of claims. Once the federal government was called on to provide aid, the cost for local employers started to climb.

There is more good news as well, as Arkansas officials noted that the trust fund was being built up to a surplus of roughly $200 million to help prevent a similar situation from happening in the future.

Arkansas unemployment on par with national rate
A recent report from the Arkansas Department of Workforce Services, using data from the U.S Department of Labor, showed that the state’s unemployment rate was at a similar level to the national rate this past July.

According to the DWS, Arkansas’ jobless rate was at 6.2 percent in July, down 1 percentage point from the previous month. The national rate during that month was also 6.2 percent. However, the Arkansas civilian labor force ticked down as well, with 7,900 fewer jobs reported. On a yearly basis, though, nine of the state’s major industries gained jobs, led by educational and health services with an employment increase of 4,200 openings.

At Corporate Cost Control, we work closely with employers across the country to better manage the nuances of unemployment insurance. Legislation changes on the state level could impact you today, and we welcome any questions or concerns you may have on a wide range of topics.


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

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