The fund that pays the benefits for jobless Nevadans is expected to run dry in weeks.

Highest unemployment rate in country has resulted in huge drop in trust fund

Nevada’s unemployment rate has ballooned to the highest in the country at 25.3 percent in May, according to the most recent data from the U.S. Department of Labor.

Nevada’s pot of money for paying jobless benefits runs out in less than seven weeks.

The unemployment trust fund has already plummeted by about 86 percent since March, when Gov. Steve Sisolak mandated the closure of casinos, restaurants, bars and other nonessential businesses.

It took the state nearly seven years to rebuild its trust fund after the last recession, and, at this rate, it will take only around six months to empty it.

“There has been historic levels of claims, so what you’re finding is, even faster than any normal recession, states are burning through their state trust funds,” said Matt Weidinger of think tank American Enterprise Institute.

Filers will still be able to receive their benefits when the trust fund runs dry, but experts say the long-term impact will be felt by employers, who will likely face higher payroll taxes, and even new filers, who may see stricter eligibility requirements in coming years.

When depleted, Nevada can borrow as much as it needs from the federal government to continue paying benefits like it did during the Great Recession.

Rising rates

During 2010, Nevada’s unemployment rate hovered around a high of 13.5 percent.

This year, Nevada’s unemployment rate ballooned to the highest in the country at 25.3 percent in May, according to the most recent data from the U.S. Department of Labor. Hawaii follows at 22.6 percent, while Michigan comes in third at 21.2 percent.

A significant spike can also be seen when comparing the number of new claims during the Great Recession to the current pandemicfueled economic downturn.