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State CARES Panel OKs $50M to Ease Rise in Unemployment Insurance

"Michael Wickline reports that legislators overseeing Arkansas' share of federal coronavirus relief funds approved $50 million to mitigate unemployment insurance rate increases for employers.

"Unless action is taken, the high claims volume caused by the COVID-19 pandemic during the second quarter of 2020 (April, May and June) will cause employers' 2021 UI tax rates to significantly increase" Division of Workforce Services Director Charisse Childers told lawmakers.

"Such an increase in UI taxes will put a financial strain on employers and create an obstacle to hiring. The top industries that are vulnerable to UI rate increases are the industries most severely impacted by the pandemic."

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