A lack of jobs, a downturn in hiring and a strained economy can all contribute to a significant increase in unemployment insurance claims across the country. Thankfully, however, conditions are positive enough to keep any fluctuations within the expected levels.

For instance, a recent report from human capital management firm ADP found that private sector employment grew by 213,000 jobs between December and January. The report, jointly completed with Moody’s Analytics, noted that small businesses saw jobs tick up by 78,000. On the other hand, large businesses accounted for growth of 40,000, led by companies with more than 1,000 workers, with gains of 26,000 jobs. On a sector-by-sector basis, the strongest were service-producing industries – primarily trade, transportation and utilities.

“Employment posted another solid gain in January, although the pace of growth is slower than in recent months,” explained Mark Zandi, chief economist of Moody’s Analytics. “Businesses in the energy and supplying industries are already scaling back payrolls in reaction to the collapse in oil prices, while industries benefiting from the lower prices have been slower to increase their hiring. All indications are that the job market will continue to improve in 2015.”

According to economists polled by Reuters, the initial forecast for the ADP employment report was actually 225,000 jobs and not 213,000. Economists also expect little change in the national unemployment rate.

UI claims experience slight uptick
Given the ups and downs of the economy, some employers may have been concerned about a steep increase in unemployment insurance claims. Fortunately, that wasn’t the case, and the gains reported by the U.S. Department of Labor were minimal.

“No large increase in UI claims was reported in January.”

The DOL found that initial claims climbed by only 11,000 for the week ending Jan. 31. The new level is 278,000 claims. The four-week moving average, however, declined on a weekly basis, now at 292,750 claims. The insured unemployment rate was at 1.8 percent for the seven-day period ending Jan. 24.

On a state-by-state basis, the highest insured unemployment rates were in Alaska, New Jersey, Connecticut and Pennsylvania, according to the DOL. The largest initial claim decreases were in California, New York and Pennsylvania.

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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