State’s unemployment trust fund outlook significantly improved for 2021
OLYMPIA – The better-than-expected economic recovery in Washington has resulted in a more favorable 2021 unemployment trust fund outlook than was projected late last year. The latest report, released on Thursday, finds the state’s unemployment trust fund is now projected to maintain solvency through 2021. The November 2020 report forecasted that a loan, or an advance on a loan, may be needed to keep the unemployment trust fund solvent through 2021.
“This latest report is really great news all around,” said Cami Feek, Commissioner for the Employment Security Department. “The pandemic was both a public health crisis and a unique and sudden economic crisis. But with a significantly improved outlook on both fronts compared to last year, we are seeing a much better picture of health for the unemployment trust fund in 2021. Through the combined leadership of the governor and state Legislature, the tax impact to businesses is projected to be about 30 percent less than anticipated in November. We also no longer believe a loan will be required to keep the trust fund solvent.”
As of June 15, 2021, the unemployment trust fund balance was approximately $1.8 billion.
Unemployment benefit payments from the trust fund were approximately $4.5 billion in 2020, and are projected to be approximately $1.7 billion in 2021 and $1.0 billion in 2022.
Employer tax contributions to the UI trust fund were approximately $1.2 billion in 2020, and are projected to be approximately $1.3 billion in 2021 and $1.8 billion in 2022.
Read the full report on the Employment Security Department’s website.