In Lansing, Michigan, a significant development is on the horizon for residents receiving unemployment benefits. The state's unemployment rate has seen an increase to 4.7% from the previous year, with 235,000 unemployed people and an additional 61,000 having filed claims and waiting for benefits. Erin Taylor, who lost her job and filed for unemployment assistance, shared her experience. She mentioned that the regular unemployment she was getting was around $150, which was not sufficient to cover her expenses when she was without a job.
Unemployment Benefit Increase: A Controversial Move
State lawmakers have approved a proposal to raise the maximum weekly unemployment benefit by nearly 70%. Currently, people on unemployment assistance in Michigan can receive up to $362 per week. Under the new bill, the duration of receiving these benefits would extend from 20 weeks to 26 weeks. However, Wendy Block with the Michigan Chamber views this increase as disappointing. She expressed concern that the increase is too high and too fast. Block advocated for a smaller increase in weekly benefits that would align more with the levels in competing states. She emphasized that the trust fund, which pays benefits to claimants, is still in the process of rebuilding after the COVID-19 pandemic and the mismanagement of funds due to fraudulent claims. There are doubts about whether the fund can sustain such large benefit increases without imposing a significant payroll tax on Michigan employers.In a statement sent to News 10, Rep. Matthew Bierlein highlighted the importance of these benefits for helping people get back on their feet but criticized the legislation for creating an incentive for people to stay on unemployment instead of seeking new jobs. He believed that the current maximum time allowed is sufficient and that extending it has unintended consequences. This plan, according to Bierlein, does not show enough respect for taxpayers and hardworking small business owners who contribute to the unemployment benefits system.News 10 reached out to the Unemployment Insurance Agency for a comment, but they declined. Bills to expand the state's unemployment benefits are on their way to Gov. Gretchen Whitmer's desk.If you are wondering if you qualify and want to apply for unemployment assistance benefits, you can do so here. Additionally, subscribing to our News 10 newsletter and YouTube page will keep you updated on the latest local news and weather. For those looking to hire or grow their business through advertising, Gray Digital Media offers a one-stop marketing solution. Learn more.Copyright 2024 WILX. All rights reserved.READ MORE