Government

USVI Labor Commissioner Proposes Slashing Unemployment Benefits by 50 Percent to Spur People Back to Work

In 2022, the unemployment rate in the U.S. Virgin Islands fell by half — from 8.4 percent in January to 4.2 percent by the end of the year. Now, V.I. Dept. of Labor Gary Molloy believes that employment numbers could be boosted even more by slashing unemployment benefits by up to 50 percent. Mr. Molloy hailed current employment statistics as welcome news during last week’s Spring Revenue Estimating Conference, but highlighted a U.S.V.I. labor participation rate of just 49.2 percent as something that could be improved. The commissioner believes that not enough people are returning to the workforce post-pandemic, a scenario which hampers the potential for revenues to grow even further.  “Simply put there are many Virgin Islanders in our community that are still at home and not looking for work,” Mr. Molloy said.  Part of the reason for this, the commissioner believes, is that unemployment benefits of $642 a week are currently too generous. Unemployment insurance currently lasts for 26 ...