Last week's Jobs Report shows the nation's economy shed 131,000 non-farm jobs in July. Even though the unemployment rate held steady at 9.5 percent, the number of unemployed workers nationally topped 14.5 million. Almost half have been out of work for 27 weeks or longer.

Colorado's unemployment rate remained at 8 percent in June, according to the most recent report from the Colorado Department of Labor and Employment. This is down from the 23-year high of 8.3 percent recorded in June 2009. Although the rate is down from a year ago, there are 44,200 fewer jobs in the state than there were last June.

While Colorado's unemployment rate continued to be lower than the national average of 9.5 percent, we are lagging behind most other states in job growth. With an employment decrease of 1.4 percent since June 2009, Colorado lost the fifth-highest percentage of jobs in the country. Colorado was also one of only eleven states with either flat or increased unemployment rates in June, according to the U.S. Bureau of Labor Statistics.

Colorado's unemployment insurance benefits are critical for workers and their families, especially now, as more laid-off workers apply for benefits and those that are already receiving them struggle to find jobs. Currently, the Unemployment Insurance Trust Fund is insolvent and Colorado, along with 32 other states, has had to take out loans from the federal government to pay unemployment insurance benefits.

An independent audit released in July by the state auditor laid out several policy changes needed to put the fund on the path to solvency. In a hearing before the Legislative Audit Committee, legislators and the Colorado Department of Labor and Employment acknowledged the extent of the problem and agreed that major changes are needed.

The Unemployment Trust Fund is supposed to run counter to the economic cycle. In good times, it brings in revenue, pays limited unemployment claims and builds up a surplus. In down times, it brings in less revenue, pays out more in claims and draws down the surplus. However, Colorado's unemployment insurance system has not generated sufficient revenues during the good times to build up enough in surplus to handle an increase in claims during a recession. In fact, it has been relying on a special "solvency surcharge" as the major source of revenue for the fund.

The auditor recommended that the General Assembly, the Department of Labor and the governor's office undertake a comprehensive assessment of the Unemployment Insurance Trust Fund, including the amount of wages subject to unemployment insurance premiums, the minimum and maximum amounts of these premiums and a redesign of the solvency surcharge.

This is an important undertaking that could result in legislation for the 2011 legislative session. A stable U.I. Trust Fund is critical to ensuring unemployed Coloradans get needed benefits when they are laid off.