Employment and sales taxes are a boon to the underground economy but not so good for staffing companies, so here is bad news from Ed Lenz of the American Staffing Association:

"Significant spikes in UI rates have occurred in past recessions. By way of historical comparison, the national average state UI tax rate for 2007 was only 0.665% of wages, compared with 1.284% in 1979 when the country was experiencing stagflation and 1.37% in 1984 after the 1982 recession. Unemployment experts predict that UI taxes will more than double in the next two years, on average, and will stay at a higher level for some time."

Tags: American Staffing Association, Staffing Companies, Industry, Ed Lenz, Unemployment insurance rates