North Michigan News

State Rep. Ken Borton on Wednesday voted against a plan to extend unemployment benefits statewide. House Bill 5827, which ultimately passed along party lines, comes as Michigan’s unemployment rate has been under 4% for more than four months.

“The Unemployment Insurance Agency is almost entirely funded on the backs of small businesses. This bill seeks to force businesses to bankroll unemployment benefits for employees who chose not to seek a new job in a timely manner,” said Borton, R-Gaylord. “Obviously, the unemployment system is important, but state government should not be expanding the burden on small businesses or allowing people who don’t want to work to further abuse the system.”

Republicans noted that the plan further disincentivizes the unemployed from quickly finding a new job, especially considering Michigan’s low unemployment rate has led to a higher availability of open positions. The 20-week benefit limitation was implemented due to problems within the UIA system that resulted in debt and high costs. The plan will also burden employers with increased costs as former employees can draw benefits for even longer.

Michigan ranks only 39th among other states in labor force participation. Michigan had 261,000 job openings in January while reporting fewer than 200,000 active job seekers. Republicans questioned why unemployment benefits should be expanded when Michigan boasts more available jobs than people looking to fill them.

“There are jobs out there, so I’m not sure why this change is in any way needed,” Borton said. “It shouldn’t take anyone six months to find a new job. You could drive down the main street of any Michigan town and see at least a handful of help-wanted signs.”

The plan now moves on to the Senate for further consideration.