Fraud Crackdown Helps NJ Cut Unemployment Tab
New Jersey has been able to reduce its unemployment insurance tab to the federal government partly because of a crackdown on fraud. The state says it's nabbing an average of 2,000 people a week who return to work but continue to collect benefits.
The Labor Department says the anti-fraud initiative has saved $60 million so far. Officials anticipate they'll save an additional $40 million in the first year.
The state has been forced to borrow money from the federal government since 2009 to meet weekly unemployment claims, which skyrocketed during the recession. The debt had been as high as $2.1 billion in 2010, but now stands at $1.4 billion.
Deputy Labor Commissioner Aaron Fichtner says the loan is expected to be fully repaid by the end of next year.
(Copyright 2012 by The Associated Press. All Rights Reserved.)