New York Unemployment Fund Nears Insolvency as Claims Skyrocket

New York is the epicenter of the coronavirus pandemic. It’s also among the states least prepared to deal with the record surge of unemployment claims by workers in restaurants, retail shops and hotels closed to slow the outbreak.

New York’s unemployment insurance trust had about $2.7 billion at the end of 2019, less than half the minimum needed to remain solvent during a recession, according to the U.S. Department of Labor. With claims skyrocketing, the state has enough money to cover the checks for about 10 weeks, according to an estimate by the Tax Foundation, a Washington-based think tank. ...