Vermont Business MagazineWeekly unemployment claims fell last week after a spike, but remain relatively high. The spike was precipitated by the seasonal reduction in school bus drivers. For the week of June 30, 2018, there were 610 claims, 189 fewer than than they were the previous week, and 53 more than they were a year ago. Altogether 3,805 new and continuing claims were filed, an increase of 139 from a week ago, and 330 fewer than a year ago. For most weeks of 2017 and 2018 claims have been below the year before.
For UI claims last week by industry, Services, which typically accounts for most claims, accounted for 57 percent of all claims.
Mathew Barewicz,Economic & Labor Market Information Chief for theVermont Department of Labor, explained the spike:“'Miscellaneous'covers a collection of smaller industries. The spike...was specifically found in one industry captured in the miscellaneous category – Transportation. Transportation has a predictable seasonal pattern as school bus companies ramp up or down activities consistent with the school year calendar. You will notice the percentages this year were similar to last year."
Vermont's unemployment rate for May was 2.8 percent. This is unchanged for the last several months.SEESTORY.
On July 1, 2017, the state reduced taxable rates for individual employers according to their experience rating. The rate reduction cut the highest UI tax rate from 8.4 percent to 7.7 percent, and the lowest rate from 1.3 percent to 1.1 percent. Additionally, July 1 marked the sunset of a provision that required claimants to wait one week between the time they were determined eligible for benefits to when they could collect those benefits.
Rateswillfall again on July 1, 2018 and payments will increase on January 1, 2019, as claims continue to be lower than previous projections. The rate reduction anticipated in July of 2018 will reduce the highest UI tax rate from 7.7. percent to 6.5 percent. The lowest UI tax rate will see a reduction from 1.1 percent to 0.8 percent.
The Unemployment Weekly Report can be found at:http://www.vtlmi.info/. Previously released Unemployment Weekly Reports and other UI reports can be found at:http://www.vtlmi.info/lmipub.htm#uc
