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As we all look forward to this pandemic coming to an end and our lives getting back to normal, we want our clients to fully understand the long-term impact Covid will have on the unemployment system and its financial impact on employers.

The state unemployment agencies were not prepared for the onslaught of claims brought on by COVID 19. They were not set up to deal with the kind of historic volumes we saw or deal with the millions of fraud claims that hit the system. It is likely to take the rest of 2021 and well into 2022 to sort this all out. Some states may never truly sort it out. Most states will rely on the Federal bailout to try and get things back to some sense of normalcy. As advocates for employers, our goal is to ensure employers are treated fairly through this process. We realize that since the system is funded 100% by employer contributions, the employer community will bear the brunt of this. We are working closely with both State and Federal officials to ensure the impact on employers is manageable and fair. In short, as an employer, you can expect your overall annual unemployment costs to be significantly higher (perhaps 30%+ higher) in every state over the next 3-4 years, even as the economy improves.

We look forward to getting past this difficult period, but the aftereffects will be felt for quite some time. Please contact your CCC Account Executive to discuss how this pandemic will impact your organization in the states you operate.


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