News Summary
Louisiana will implement significant changes to its unemployment benefits starting January 1, 2022, increasing the maximum weekly payment and reducing employer tax burdens. The state’s unemployment insurance tax wage base will decrease, while the unemployment claims are expected to rise. Additionally, Louisiana has introduced stricter work-search requirements for beneficiaries. These changes are part of a broader strategy to bolster the state’s unemployment fund, which is projected to grow significantly by 2026.
Louisiana is set to implement changes to its unemployment benefits, effective January 1, 2022, which will include an increase in the maximum weekly payment from $275 to $282. This adjustment is part of a broader strategy related to the state’s unemployment insurance system that will also see a reduction in unemployment insurance taxes paid by employers.
The wage base for these unemployment insurance taxes will decrease from $7,700 to $7,000, leading to an estimated reduction of about 9 to 10 percent in the tax burden for Louisiana employers. These changes are projected to bolster the state’s unemployment fund, which is expected to grow by $82 million, reaching approximately $1.196 billion by August 2026. Currently, the fund has a balance of $1.114 billion, and the planned changes are triggered by the fund’s expected surpassing of $1.15 billion.
In terms of claims, the Louisiana Workforce Commission (LWC) forecasts an increase in weekly initial unemployment claims, projecting between 9,900 and 13,000. Under revised regulations, the duration of unemployment benefits will now be tied to the state’s unemployment rate, limiting the maximum period one can collect benefits to 12 weeks, down from the previous maximum of 26 weeks.
These significant shifts in unemployment policy also include a newly mandated increase in work-search actions required for unemployment benefits. Under House Bill 153, which was recently passed by the Louisiana legislature, residents will now be required to engage in five work-search efforts per week, up from three. These work-search actions can range from interviewing and applying for jobs to enhancing resumes and attending job fairs.
Certain critics have expressed concern that these increased work-search requirements might create additional barriers for job seekers, particularly for those in rural areas where employment opportunities might be limited. The LWC has noted that they received over 3,500 reports last year regarding applicants missing interviews, but only 31 individuals were disqualified from benefits as a result.
In addition to the work-search requirements, the legislation specifies that individuals may be disqualified from receiving benefits for not attending scheduled job interviews or rejecting suitable job offers. The average weekly unemployment benefit for Louisiana remains one of the lowest in the United States, with claims averaging around $253 during the fourth quarter of 2024, placing Louisiana as the second lowest nationally, just above Mississippi.
As part of the ongoing efforts to assist unemployment beneficiaries, the LWC is also implementing a new ‘One Door Policy’ aimed at streamlining the connection between claimants and case workers, intending to provide additional support for those navigating these new requirements.
This overhaul of the unemployment benefits system in Louisiana reflects both an increase in financial assistance for unemployed individuals, alongside stricter requirements aimed at incentivizing job placement. While there are advantages to the new system, including higher maximum weekly payments and reduced employer tax burdens, the increased obligations on job seekers may introduce challenges for some within the state’s labor market.
Deeper Dive: News & Info About This Topic
- WAFB: New work search requirements for unemployment benefits
- NOLA: Louisiana could tighten rules for unemployment beneficiaries
- WBRZ: Bill to raise requirements for unemployment benefits
- Biz New Orleans: Louisiana Workforce Commission announces changes to unemployment benefits
- LA Illuminator: Lawsuit challenging Louisiana unemployment benefits dismissed
- Wikipedia: Unemployment insurance
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
