PHX Reporter

The Arizona House Commerce Committee has advanced a bill aimed at reforming the state's unemployment insurance system. The legislation, known as HB2450, was introduced by House Majority Leader Michael Carbone. It proposes adjusting the duration of unemployment benefits based on the state's unemployment rate.

Majority Leader Carbone said, "This bill ensures that Arizona’s unemployment system is responsive to economic realities while keeping the focus on getting people back to work." He emphasized that Arizona should encourage workforce participation rather than prolonged reliance on government benefits. "This is a responsible approach that strengthens our economy, protects taxpayers, and prioritizes those who truly need assistance," he added.

Currently, individuals in Arizona can receive unemployment benefits for 24 to 26 weeks regardless of economic conditions. HB2450 introduces a tiered system where benefit duration would vary with the prior quarter's unemployment rate. If the rate is 5 percent or lower, benefits would be available for 12 weeks, with longer durations as the rate increases.

Arizona's seasonally adjusted unemployment rate for November 2024 was reported at 3.7 percent, indicating a strong job market and growing economy. Carbone's bill seeks to align benefits with these conditions and supports House Republicans' plan to promote economic growth.

Leader Carbone remarked, "House Republicans are leading with strength and purpose, making sure government works for the people — not the other way around." He described HB2450 as a measure to keep Arizona’s workforce engaged and ensure that the unemployment system serves as a safety net rather than an employment substitute.

The bill will now proceed to the full Arizona House of Representatives for further consideration. Michael Carbone represents Legislative District 25 in the Arizona House of Representatives and serves as House Majority Leader.