Employers urge tighter enforcement of Michigan's unemployment eligibility criteria
June 09, 2025 | 2025 House Legislature MI, Michigan
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The discussion highlighted a significant drop in the UI trust fund, plummeting from over $4.5 billion before the pandemic to less than $797 million during it. Although the fund has recently recovered to $3 billion, it took five years to reach this point. Employers are now facing workforce shortages while simultaneously dealing with the challenges of extended unemployment benefits.
Key issues raised included the need for stricter enforcement of job search requirements. Employers reported instances of applicants failing to attend scheduled interviews yet continuing to receive benefits, which they argue undermines the integrity of the system. Current laws allow for minimal reporting of such issues, leaving employers unable to communicate potential fraud to the UIA effectively.
The meeting also touched on the formation of two work groups in 2023 aimed at addressing these concerns. However, participants expressed disappointment over the lack of meaningful dialogue with stakeholders, including the Michigan Poverty Law Project, regarding proposed legislative changes to improve the situation.
As discussions continue, employers are hopeful that forthcoming legislation will address these enforcement issues, ensuring a fairer unemployment system that supports both job seekers and the business community.
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