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In this article, Goltz helps you understand the importance of a bad business decision, action or behavior, within the hiring process that can have long lasting monetary results. The hidden costs of a bad hire can result in increased recruitment costs, increased training costs, possible increases in the rate of unemployment taxes due to increased claims paid out to a company’s former employees, the costs of losing customers, and the costs of inefficient business processes.


1. What is the federal unemployment rate? Are there credits toward this rate?
2. What is the unemployment rate in your state? Can states borrow from the Federal government to pay unemployment insurance?
3. What is the journal entry to record unemployment tax? Does the employee ever pay unemployment taxes?

Goltz, J. (2011). The Hidden Costs of Bad Hiring. The New York Times, March 1 (Retrievable online at