LOS ANGELES — A decline in Hawaii's unemployment rate will result in a $300-per-employee drop in taxes paid by the state's businesses.
The unemployment rate has dropped to 4.4% in November from 6.8% in December 2010, which has helped contribute to the replenishment of the Unemployment Compensation Trust Fund, according to a release from the Hawaii State Department of Labor and Industrial Relations.
In December 2010, the trust fund was depleted and had to borrow $183 million to pay benefits.
The fund balance for 2013 is now estimated to be around $300 million, up from $104 million in 2012, according to the state labor department.
As of October 2013, officials said Hawaii had the fourth lowest unemployment rate among states.
Unemployment Insurance tax rates for 2014 will be reduced 35% on average, resulting in employers paying $130 million less in taxes, according to the release.
"This is welcome news to many small businesses throughout the state who can now consider investing the savings in their businesses and personnel," Gov. Neil Abercrombie said in a written statement.
Hawaii's unemployment rate peaked at 7.1% during the 2008-2009 recession.