Great Lakes Wire

Michigan small business owners have expressed significant concerns over talent shortages, inflation, and potential expansions to the state's unemployment insurance system. According to the Small Business Association of Michigan’s (SBAM) spring membership survey, 90% of members reported experiencing higher cost increases compared to previous years.

The survey highlighted that by a three-to-one margin, small business owners are opposed to any proposed expansion of the unemployment insurance system. Legislative efforts under consideration would increase Michigan’s unemployment benefits from a maximum of 20 weeks per year to 26 weeks and raise the cash benefit from $362 per week to $602, with an automatic annual increase.

Julia Dale, Director of the Unemployment Insurance Agency (UIA), has been focusing on addressing fraud and system issues post-COVID-19 pandemic. The pandemic saw the Unemployment Insurance Trust Fund being heavily utilized as a social safety net, which has led to its depletion from a healthy $4 billion pre-pandemic to just over $2 billion currently.

The UIA is working on implementing a new system aimed at supporting both claimants and employers more effectively. This includes measures to reduce fraud and update technology. However, there are concerns that legislative actions could undermine these efforts if implemented prematurely.

SBAM urges legislators to allow the UIA to prioritize restoring the Insurance Trust Fund before expanding benefits. They encourage small business owners to communicate their concerns directly with their representatives.

By Kelli Saunders; originally published in SBAM’s July/August 2024 issue of FOCUS magazine

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