By Senator Michael Johnson
Every so often, we have an opportunity to really change the way government works. The ability to fundamentally change the way a program works. This year, we have that opportunity. A bill has been filed in the House that could alter the way we pay unemployment benefits.
This bill will create a balanced system that will make jobless benefitslast for 12 weeks when the unemployment rate is under 5.5%. As the unemployment rate increases, so would the amount of weeks someone could receive – up to 20 weeks at 9% unemployment.
Current law allows someone on unemployment to collect up to 20 weeks, regardless of the unemployment rate. Why does that matter? In simple terms, when unemployment is low, employers are looking for employees. That is the perfect time to incentivize the unemployed to look for a job, not disincentivize the unemployed with an extra eight weeks of benefits.
The State Newspaper reports that in 2022-23 the state paid out $135.6 million in unemployment benefits. If the new twelve week cap goes in to place the state will save $34.6 million. That is money that employers won’t have to pay into the unemployment fund, money that can go back to wages and expansion. Wages can rise and those looking for good jobs can find them.
Currently, unemployment is low – 3% in December. Employers are looking for workers, just look around at all of the “Help Wanted” signs. Every time I talk with an employer I hear the same message, we need workers. H.4710, filed by Representative Micah Caskey (R-Lexington)has a chance to encourage workers to return to the workforce – as quickly as possible.
This bill just passed out of the House Ways and Means Committee and is currently on the House floor. If passed, it will head to the Senate where it should be a priority.
H.4710 is going to be good for workers, and good for employers. It balances benefits against open jobs. When jobs are plentiful, employees can’t draw as much of a benefit. When jobs are scarce, employees are given the benefits and time that they need to secure a job. This is a win-win for everyone involved.
Common sense legislation, which encourages the unemployed to return to the workforce, just makes sense. I’m looking forward to making this idea a law, and making South Carolina more competitive for business.
Michael Johnson represents District 16 in the South Carolina Senate. District 16 includes Tega Cay, Fort Mill and Indian Land. He can be reached at [email protected].
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