My budget for labor is what it is. When the government tells me I must pay, say 5% more per employee for UI, that means I have 5% less available for employees. I let people go, hopefully by not refilling their positions when they leave, but sadly, by firing people if it comes to it.
Now, the 5% fewer employees left are effectively paying the cost, because 95 people now have to do the job formerly done by 100. Since their productivity has been forced to increase, they are paying the cost of the mandated insurance.
People who actually understand economics know this. It is why we argue against raising the minimum wage. Only liberals think that employers pay benefits. It's a Three Card Monte game, and when the cards stop moving, the employee is the person who has to work harder to pay the piper -- or take less money home to spend on the things he really wants to buy.
Just because I worked at the unemployment office doesn’t mean that is the only job I’ve ever had. Most of the rest of my career was in human resources, so I probably have at least as much as experience as you do. And if you are an employer you know that the UI tax is on a sliding scale.