Unemployment Rate Down, Insurance Fund Still Insolvent

Vermont’s unemployment rate is down one point over last year at this time, to 5.7%. But the Unemployment Insurance Trust Fund that pays out benefits to unemployed Vermonters remains insolvent, with the state borrowing federal funds to keep paying benefits. Lawmakers reached a compromise in the spring to return the fund to solvency over several years. Tracy Phillips, director of Unemployment Insurance & Wages for the Vermont Department of Labor, explains the impact of trends in unemployment and changes in how the fund is structured.