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Dec. 04, 2008
Copyright © Las Vegas Review-Journal

Joblessness expected to worsen in Nevada

Official to hold line on unemployment tax rate

By ED VOGEL
LAS VEGAS REVIEW-JOURNAL CAPITAL BUREAU

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CARSON CITY -- Unemployment in Nevada will hit a high of 8.8 percent about this time next year, although officials said Wednesday there is more than enough money in a trust fund to pay laid-off benefits.

Employment Security Division administrator Cindy Jones decided to keep the unemployment tax rate at an average of 1.33 percent in 2009. That is what employers pay to cover benefits paid to laid-off workers.

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    • The tax paid by individual employers varies and depends on their record of laying off workers. Those that seldom have layoffs pay a 0.25 percent tax rate, while the highest rate, 5.4 percent, goes to companies with records of more frequent layoffs. The tax is paid on the first $26,600 of each employee's wages.

    Jones said she decided to keep the rate at 1.33 percent because raising it during a recession would hurt companies.

    "We raise taxes in good times, not during economic downturns," she said.

    During a meeting in October, an advisory board also recommended keeping the same tax rate as in 2009 as in 2008.

    But unemployment since that meeting has inched up to 7.6 percent, the highest since 1983.

    By keeping the 1.33 percent rate, the Employment Security Division expects to have its unemployment trust fund balance fall by nearly $300 million by the end of 2009. Even with the decline, $450 million will remain in the fund.

    "Right now we are in pretty good shape," Jones said. "If our projections hold, we will be fine."

    She noted many states, including California, are borrowing to keep up with payments to unemployed people.

    Based on congressional action in November, unemployed workers in Nevada can keep receiving benefits for as long as 59 weeks.

    Of that total, 26 weeks are paid through the Nevada fund, the remainder by the federal government.

    Unemployment checks in Nevada average about $300 a week, with a maximum of $393.

    Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.

    EMPLOYMENT OFFICE READY TO HANDLE BENEFIT EXTENSION

    The state's Department of Employment, Training & Rehabilitation has completed system changes necessary to accommodate extended unemployment benefits.

    President Bush on Nov. 21 approved a federal law to push unemployment benefits from 13 weeks to 20 weeks.

    The state employment department has sent notices to claimants who've exhausted their first round of benefits to let them know how they can access additional payments under the new law, said Cindy Jones, administrator for the employment security division and deputy director of the employment department.

    To obtain additional benefits, claimants can file a normal weekly claim on the Internet, at www.expressclaim.org, or by phone, at 486-0350. Added weeks are not retroactive to before the law's passage, so benefits can be claimed only from the week ending Nov. 30 forward. The claim will automatically restart for people who have exhausted their benefits and are still unemployed.

    Another 13-week extension could eventually become available if Nevada's unemployment rate stays above 6 percent.

    The federal government, not Nevada, is funding the extensions.

    The department employment estimates about 10,000 Nevadans may be eligible for the benefit extension.
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    rb wrote on December 04, 2008 06:03 PM: Always take the government's numbers and double them. Time to leave las wages....


    Would you, hire you? wrote on December 04, 2008 02:15 PM: I don't know how most of you seeking employment present yourselves?

    I get the impression many "job seekers" give more reasons not to be hired, than to be hired. But I notice the applicant is completely unaware of what they are projecting.

    If, for instance, your unmanageable family problems, no reliable transportation, dressing inappropriately, lousy hygiene, uncontrollable addictions, turbulent romances, unsavory social affiliations ...(fill in the blanks)...are not in the job description, then don't bring them to the interview or job.




    Justice wrote on December 04, 2008 11:40 AM: As an employer myself who hires and fires people, I know a criminal background does hinder me from choosing that candidate. Esp. if two people pretty much have the same qualifications, I usually go with the cleaner candidate. I actually had a guy show up on a bicycle, fills out an application and on there he claimed he was just let out of Ely prison for murder. Yeah, that's the guy I want working for me. I'd be afraid if I asked him to do something he didn't like, he'd just kill me. Go figure. Now a days it's all about being clean, background check, drug test, and even credit can affect a person from employment as well as having reliable transportation. I had to let a guy go because he didn't have a car and it was always a hassle everyday for this guy to make it to work on time based on having to get rides, bus, carrier pigeon. I gave him the 3 strike rule and he was out!


    Ken wrote on December 04, 2008 11:28 AM: JMS -- is this 2005? You sound like that other traitor, Harry Reid. Harry wanted to crawl under a rock too and claimed we lost the war. Tell that to the people of Iraq today. Tell that to the troops who continue to keep the peace in that country. People like you and Harry enjoy your right to make idiotic comments like these because of our service men and women.

    "While we throw away billions of dollars trying to fight a war we cannot win, ...

    I would say the _terrorists_ have succeeded. It's time to pull our boys back out of that hell hole..."


    sfdda wrote on December 04, 2008 10:53 AM: I was in Las Vegas for 4 days during the Thanksgiving Holiday. What economic downturn are you guys talking about? Is it really that bad? I went to Fashion Show Mall and Forum Shops on separate days and they were packed. I ate dinner at Yardhouse over at Town Square and that was packed. Vegas is still booming! Recession Proof!


    Michael James wrote on December 04, 2008 10:35 AM: JMS... Hear, hear. If we want to find Bin Laden all we need to do is send some Predators over the Pakistani/Afghan border area and find the really tall dude rolling around on the ground laughing uncontrollably.


    outta here wrote on December 04, 2008 09:47 AM: I worked for a company for 8 years before being let go in sept. (so much for job security)I have been on countless interviews since then to no avail. To make matters worse my husband works in the school district and with all the talks of cut backs we are no facing the reality that both of us might be out of work. All this with a family to support. I have never been in a situation so bad and I know that there are hundreds of similer stories in this city.


    JMS wrote on December 04, 2008 08:30 AM: And the terrorists are laughing at us.

    While we throw away billions of dollars trying to fight a war we cannot win, our economy continues to fall to its knees.

    I would say the _terrorists_ have succeeded. It's time to pull our boys back out of that hell hole, and strengthen our (once) great country.

    The American people need to realize that our country has deteriorated. Especially our education system. This failed economy needs to be the shock to the system. I believe that if we do not focus on the real issues that this will only get worse. The economy might pick up again, but it will fail. We need to learn our lesson from this great catastrophe.


    Joe Bama wrote on December 04, 2008 07:58 AM: tmoney if he has a criminal background does that mean he is not allowed to work at all?


    dosboot wrote on December 04, 2008 07:30 AM: The Nevada Dept of Employment rarely if ever denies a claim.
    I had a case where an employee lied to a Judge by submitting a fraudulent order. The employee admitted to perpetrating a fraud upon the court and was terminated.

    After a hearing where the employee admitted that a fraud was committed, the Nevada Dept of Employment granted the employee's claim. To further underscore the employee's conduct, the employee admitted to contacting clients of the employer with the explicit purpose of having the clients leave the firm.
    The Dept found that the employee was not terminated for cause. The Dept reasoned that there was no written office policy regarding lying to the court and hence the employee was not on notice that lying is wrong and would result in termination.

    So it goes in Nevada....


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