South Carolina Unemployment Insurance Trust Fund Running Low

September 22, 2008

The head of the South Carolina employment office says the trust fund that pays benefits to out-of-work residents is projected to run out of money in January.

Employment Security Commission chief Ted Halley said Sept. 19 the increasing number of people collecting jobless benefits in the state coupled with lower employment tax collections has depleted the $130 million fund. The fund had $800 million seven years ago.

Halley says he has never seen the trust fund run out of money in his 37 years at the agency. Benefits would continue to be paid with a loan from the federal government.

South Carolina has had a high jobless rate in the past year. An additional 14,000 people sought unemployment benefits in August, pushing the jobless rate to 7.6 percent.

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