Policy Documents

First, Stop the Bleeding: Getting North Carolina Out of Its Unemployment Insurance Crisis

John Locke Foundation –
January 13, 2012

The many nuances of the UI system mean that without a brief explanation one may struggle to understand the severity of the current scenario or the basis for disparities across states. Here are a few basic points, but if one would prefer a deeper examination, please see “Unemployment Insurance Taxes: Options for Program Design and Insolvent Trust Funds,” a 32-page paper from the Tax Foundation.

Originating with the 1935 Social Security Act, the purported goal of the UI system is to provide welfare payments to individuals who are “unemployed through no fault of their own.” It is a joint federal and state program with two streams for both revenue and expenditure.