The Recession of 2001 and Unemployment Insurance Financing

Research Report

The Recession of 2001 and Unemployment Insurance Financing

January 1, 2005

Abstract

This report examines alternative methods for financing unemployment insurance (UI) trust fund deficits, including the traditional method of borrowing from the U.S. Treasury as well as borrowing from the private securities market. It also reviews the experiences of individual states that have experienced funding problems following the recession of 2001.

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