Unemployment Insurance Borrowing Now Greater Than During 1980s Recession

Breaking News

...It’s official, recession hounds: The 26 states with insolvent unemployment insurance trust funds have now borrowed more than was borrowed during 1981 and 1982, the last time there was a severe recession in the U.S., and oft-used benchmark for when things are Officially Really Bad.

According to this long-buried CBO document (PDF) [2], in March 1983, total outstanding state loans were 13.7 billion, a figure that includes borrowing during 1981 and 1982 and the first quarter of 1983 plus carried-over borrowing from 1975 to 1980.

In 2009 dollars, that’s $29.5 billion. Current state borrowing is now just over $30 billion....

In 1983, states’ borrowing was equal to about 3 percent of total taxable wages. Today, that borrowing is equal to about 2.4 percent. But never fear – states only have to borrow $6.5 billion more to make up the difference, and California alone is projected to borrow $11 billion more before the recession is over.

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