is Minnesota prepared to cover unemployment benefit claims?

Unemployment is reaching high levels and states are facing an unprecedented rise in unemployment benefit claims, which will take a toll on unemployment insurance trust funds. But prepared is our state to cover these claims, and for how long?

According to the Tax Foundation, Minnesota is solvent enough to fund 13 weeks of unemployment benefits. Minnesota ranks 36th in regards to how many weeks of unemployment benefits the state`s trust fund can cover. Wyoming, Florida, South Dakota, Utah, and Oregon are the top 5 funded states. Their Trust funds can cover Unemployment benefits for at least 65 weeks.

How high is Unemployment in Minnesota?

In Minnesota, unemployment benefit claims are 11.8% of the total workforce. Minnesota ranks 9th position on this metric, meaning it is one of the states with higher than average unemployment numbers. According to DEED, as of April 9th, there have been 407,362 unemployment benefit applications since March 16th in Minnesota.

If these funds are depleted, the state will have to borrow from the federal government. And that would mean the state would have to find a way to pay these funds back once unemployment levels go back to their normal levels.

All in all, the solvency of the unemployment insurance trust fund has serious implications for our state’s budget. And so far, it seems like we are one of the states that are likely to come out of the pandemic significantly scathed.