Reports

The benefits from four major social insurance programs provide crucial financial support during difficult times in the lives of hundreds of thousands New York workers and their families each year. This report analyzes benefits provided for representative workers under unemployment insurance, workers’ compensation, temporary disability insurance and paid family leave. 

The devastating job losses caused by the COVID-19 pandemic led to a record number of unemployment insurance (UI) claims in New York, necessitating borrowing from the federal government beginning in May 2020. Two years later, the State’s UI debt has remained stubbornly high despite steady employment gains and state tax rates that have already increased to maximum permissible levels. Absent federal or state significant action, interest costs will mount and employers federal taxes will also grow.

The historic surge in unemployment claims at the onset of the COVID-19 pandemic rapidly depleted the New York State Unemployment Insurance (UI) Trust Fund, resulting in the State borrowing from the federal government to pay claims. State UI tax rates have already risen to the highest level permissible under law in 2021. Unless the State or federal government takes significant action, federal UI tax rates on employers will also increase in 2022 and beyond.

A year after the first case of COVID-19 was reported in New York State, the economic disruption caused by the pandemic remains severe. One key measure is the total number of New Yorkers claiming unemployment insurance (UI) benefits. The figure remains elevated 11 months after the initial surge of job losses, with 2.4 million claims reported by the U.S. Bureau of Labor Statistics as of mid-February 2021.

Approved payments to New York recipients for Unemployment Insurance totaled $32.1 billion from March 1 through July 17, with steep increases in payments following the onset of the pandemic.