State Unemployment Insurance Reverse Fund could be Depleted by October

A new analysis shows Wisconsin’s unemployment insurance fund could be depleted by October if the state’s high rate of joblessness — caused by efforts to clamp down on the spread of COVID-19 — continues at its current pace.

Under the current rate of claims of about 300,000 a week, which is nearly 200% higher than the average number of weekly claims received during the first year of the Great Recession, the state unemployment fund would be exhausted by Oct. 11, according to DWD.

The fund, which sat at more than $1.8 billion Wednesday, would last until Jan. 3 if payable claims drop to 170,000 per week and, if weekly payable claims were reduced to 85,000, the fund would be depleted by Sept. 19, 2021.

DWD Secretary Caleb Frostman said in a statement the department is monitoring the fund and planning for all contingencies.