Inflation and current times are not being easy for Americans. For this reason, the increase in unemployment benefits in the United States comes as hopeful news for New Yorkers. New York Governor Kathe Hochul and her team have announced increased benefits as well as cost reductions for businesses. All thanks to the liquidation of a nearly $7 million federal loan from the Unemployment Insurance Trust Fund.
Unemployment insurance will go from $504 to $869 per week
Starting this fall, unemployed workers in New York will go from receiving unemployment insurance of $504 per week to $869 per week, an increase of $365. By settling the debt, the state is also providing money to employers, whose contribution rates had continued to rise while the debt was being settled. Employers are projected to save an average of $100 per employee in 2026 and $250 in 2027. In addition, the taxable wage base will increase in 2026.
During the pandemic, citizens continued to receive this benefit despite the economic recession. This was possible thanks to the loan the state made to the federal government to ensure they could continue to pay this amount. Before the COVID-19 pandemic, the Unemployment Trust Fund had a positive balance of nearly $2.5 billion.
“This is a crucial milestone that provides real relief”
Paying off the debt is a step forward, as it unfreezes the debt. Following the decision, Assemblyman Manny De los Santos said, “This is a crucial milestone that provides real relief to our small businesses and working families, especially in communities like Inwood, Washington Heights, and Marble Hill.”
All the details are included in the press release issued on the government’s official website. It also includes statements from Mario Cilento, president of the Hotel and Gaming Industry Council (AFL-CIO), who said: “The maximum benefit, stagnant at $504 per week since 2019, did not cover the basic needs of families facing financial hardship through no fault of their own. Increasing this benefit will allow them to better support themselves and their families during a particularly stressful and difficult period.”
This change will be particularly felt by workers in the hospitality sector and other temporary jobs
The Governor also expressed her relief at settling the debt and being able to alleviate the situation of those with fewer resources as much as possible, while also supporting the hospitality industry. “This is about doing the right thing: increasing benefits for unemployed New Yorkers who need support, reducing costs for the businesses that drive our economy, and putting money back into the pockets of New Yorkers,” Hochul explained.
This change will be particularly felt by workers in the hospitality sector and other temporary jobs, who are more affected by layoffs or terminations during the slow tourist season. This is the largest increase in the unemployment insurance limit in New York City on record, a situation exacerbated by the rising cost of living, especially in a country like the United States and in a state like New York, one of the most expensive areas to live in the world.
On the business side, Andrea Stewart-Cousins emphasized, “Paying off New York’s Unemployment Insurance debt is a huge victory for our entire economy. Our nearly three million small businesses are the true economic engine of New York. As federal leaders imposed damaging tariffs and trade wars, we eased a heavy burden on small businesses and strengthened the social safety net for workers.”
