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Experience Rating

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employment1 year ago

"Why Employers Are Overlooking Young American Men"

The decline in employment among young men in America may be partly due to the unemployment-insurance system's "experience rating," which increases taxes for employers who lay off workers. This system makes employers hesitant to hire young men, who are often seen as riskier hires. The experience rating was implemented nationwide in the mid-1980s and has been linked to higher unemployment rates for young men, particularly in economically vulnerable industries. Addressing this issue may require policy changes to the unemployment insurance system.