New Hampshire proposes increased unemployment benefits to support workers amid inflation

New Hampshire's House Labor, Industrial and Rehabilitative Services Committee convened on February 18, 2025, to discuss significant amendments to unemployment benefits aimed at addressing the financial pressures faced by residents. The proposed changes, introduced by Representative Mackenzie, seek to adjust the unemployment benefit tiers, potentially increasing the maximum weekly benefit from $427 to $535 for eligible individuals.

The discussion highlighted the growing concern over the impact of inflation on residents' financial stability. Testimonies revealed that many individuals are struggling to meet their monthly obligations, with a suggested living wage in New Hampshire estimated at around $58,000. The committee acknowledged that while high earners are moving into the state, many residents still face challenges in maintaining their financial health, particularly after sudden job losses.

Deputy Commissioner Richard Lavers provided insights into the proposed amendment, which would reduce the number of benefit tiers from 12 to 6. This change aims to maintain a wage replacement rate of 53.5%, ensuring that individuals receive just over half of their previous earnings during unemployment. Current data indicates that individuals qualifying for the existing maximum benefit had an average base period earning of over $88,500, resulting in a wage replacement rate of only 25%.

The committee's discussions also touched on the broader implications of unemployment benefits on family stability and mental health, emphasizing the stress caused by unexpected layoffs. The proposed increase in benefits is seen as a crucial step in alleviating some of this pressure.

As the committee moves forward, the focus will be on finalizing the amendment and its potential impact on New Hampshire's workforce. The proposed changes reflect a commitment to supporting residents during challenging economic times, with the hope of fostering greater financial security for families across the state.