State Representative Falzone announced job-creating legislation passed by the Massachusetts House of Representatives that will halt a scheduled increase in the unemployment insurance that all employers pay.

As a result of increased claims to the state’s Unemployment Insurance Trust Fund during the current economic slowdown, the contribution rate employers pay into the fund was scheduled to increase dramatically. The bill passed by the House of Representatives will freeze the rate at the 2009 level.

Representative Falzone commented, “It is important to keep as many people as possible working and creating less pressure on unemployment benefits. The passage of this legislation signifies a commitment to job creation and economic growth in Massachusetts by allowing employers to retain and as soon as possible rehire employees. Increased costs of operation are difficult to sustain for businesses in the current economy, and in order to rebuild our prosperity, Massachusetts must remain committed to assisting businesses to restrain their cost increases so they can provide the vital engine to regrow our Commonwealth’s economy.”

The slow nature of the economy makes this kind of legislation vital to the success and job-creating prosperity of small businesses and business owners. By freezing unemployment insurance rates, businesses are able to employ or keep employed more workers who, through their retention, can in turn help stimulate the economy.

In 2009 the average employer contribution into the Unemployment Insurance Trust Fund was $584 per employee. Without legislative action, this per-employee assessment would have jumped to approximately $852. The bill as passed by the House of Representatives will maintain contribution rates on the significantly lower 2009 schedule. It is anticipated that even with the passage of this legislation the assessment on employers will likely increase a modest amount as a result of an increased number of layoffs.