Professor Elam

AS a private employer, one pays unemployment tax to the state of residence. If no one files unemployment claims on you as an employer, your rate will go down. IF general unemployment rises however there is no one left to fill the coffers but the remaining employers still in business. This article relates how that will eventually cut into employment. 

Nest time you hear a politician like the Governor of Michigan, say let's keep extending unemployment benefits, ask yourself what is the source of that money. Note the state of Conn. is already 'borrowing' money from the Federal Govt to make its unemployment payments.