News Releases for November 2007
November 27, 2007
For further information, please Contact the Governor's Office
Hoeven Announces Reduction In Unemployment Insurance Tax Rates
Also UI Benefits Increase, Job Service Wins National Awards For Service
BISMARCK, N.D. – Gov. John Hoeven today announced a reduction in the average unemployment insurance tax rate from 1.18 percent of taxable wages in 2007 to 0.95 percent of taxable wages in 2008, bringing the average tax rate below 1 percent.
The reduction will save North Dakota employers an estimated $10.8 million in premiums next year. The 2008 unemployment insurance tax rates will range from 0.20 percent to 9.86 percent of taxable wages, depending on the employer’s unemployment claims experience.
“Strong economic growth and low unemployment in North Dakota have been key factors in the continuing reduction of the average unemployment insurance tax rate,” Hoeven said. “We are continuing to strengthen our business climate and make it more attractive for businesses to locate or expand in North Dakota. That in turn creates strong job growth across all our industries.”
According to Hoeven, the average unemployment insurance tax rate will decrease from 1.63 percent in 2004 to 0.95 percent in 2008. Employment growth in higher paying industries such as mining, utilities, finance and insurance, professional and technical services, and management, and low overall unemployment have led to fewer unemployment claims, fewer payouts from the Unemployment Insurance Trust Fund and less tax revenue necessary to maintain the fund balance.
Last year (from the end of 2005 to the end of 2006), North Dakota added 7,597 jobs that were covered by unemployment insurance, a growth rate of 2.3 percent compared to 1.7 percent nationally. The September 2007 unemployment rate for North Dakota was 2.6 percent, which is below the 4.5 percent national average.
In addition to a reduction in unemployment insurance tax rates, Hoeven also announced an increase in the weekly benefit payments to unemployment insurance claimants as of July 1, 2007. Benefit payments increase when state unemployment insurance tax rates are lower than the national average, and average wages statewide are higher.
“Job Service North Dakota has made advancements in recent years to not only improve internal management of the unemployment insurance program, but to also make concerted efforts with employer feedback and legislative leadership to create a more stable and fair system,” said Job Service North Dakota Executive Director Maren Daley. “This coordinated and focused effort is providing a higher level of service to North Dakota employers and unemployment insurance claimants.”
The U.S. Department of Labor (USDOL) recently recognized Job Service North Dakota for being one of the top performing state agencies in administration of the unemployment insurance program at the second annual Unemployment Insurance State Performance Excellence Awards ceremony, Oct. 23, 2007, in Nashua, N.H.
The agency was honored for attaining the best performance nationally in issuing timely payments to unemployment insurance beneficiaries while employing effective safeguards to stop improper payments. Job Service also received the top award for issuing timely and high-quality appeals decisions on unemployment insurance cases. This is the second year in a row Job Service has won the award for timely and high-quality appeals decisions.
“Job Service staff has done an outstanding job of administering the unemployment insurance program and serving North Dakotans in a cost-effective way that helps create a strong business climate and quality jobs,” Hoeven said. “They have successfully set a national standard for timely and accurate service to claimants and employers across the state.”
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