1. Careers
Alison Doyle

Cuts in Federal Extended Unemployment Benefits 2013

By March 8, 2013

Follow me on:

The U.S. Labor Department reports that unemployed workers collecting federal extended unemployment benefits can expect cuts of up to 11% in Emergency Unemployment Compensation (EUC) benefits starting in April if the sequester continues and if the state unemployment offices are able to make the change by then. This will be a loss of about $400 in EUC benefits by the end of the fiscal year for covered workers.

The National Employment Law Project (NELP) reports that the number of unemployed workers affected by the EUC cuts will reach roughly 3.8 million by the end of the fiscal year. There will be an additional 5% in unemployment compensation if Congress fails to stop the automatic sequester for the following fiscal year.

Christine Owens, executive director of the National Employment Law Project said "The strong job growth in February is good news, which we should make every effort to sustain. Unfortunately, the heavy-handed budget cuts forced by the sequester threaten serious harm to our economy and to our nation's long-term unemployed workers, who are among the Americans who'll feel these stupid and senseless cuts most deeply."

Check with your state unemployment office for information on how this could impact your unemployment compensation.

Related Articles: How Bad is Sequestration? | Unemployment Eligibility | Unemployment for Federal Employees

Connect With Alison:
Twitter | Facebook | Google+ | LinkedIn

Comments
March 8, 2013 at 6:27 pm
(1) StuckOnTheDole says:

To figure out what one will receive after the shiz hits the fan, multiply your current weekly amount by 0.897. For example, my weekly benefit amount will drop from 450 to 401. It will be this way until the end of September unless our esteemed Congress and president can get their acts together. (But I would not hold my breath!) However, state benefits are not impacted by cuts, only federal extensions.

I can understand a modest cut, but pushing 11% is a bit much. There will be fewer dollars released into the economy and perhaps this could lead to even more layoffs.

If a federal employee has a long furlough or is laid off, then the federal govt. would pay for their unemployment insurance. But lets say it is a govt contractor that has to get people go, then individual states will be on the hook for up to the first six months. Some states like CA and NV have enough problems already! The end result will be MORE people competing for FEWER resources. This is not just cutting fat, it is cutting bones, muscles and vital organs. It is 10% cuts across the board. It is like having a finger and a toe lopped off. After all it is a proportionate 10% cut.

Sequester Egypt, not America!

March 31, 2013 at 3:20 pm
(2) aj says:

alison is this cut still going to happen to everyone in all states? are they even trying to prevent it from happening?

March 31, 2013 at 3:50 pm
(3) Alison says:

The best thing to do is check with your state unemployment office because not all states are doing the same thing. California has postponed the cuts for at least two more weeks, from what I just read. Other states are implementing cuts.

Here’s a list of state unemployment office websites:

http://jobsearch.about.com/od/unemployment/a/unemploymentoff.htm

Alison

April 1, 2013 at 4:26 pm
(4) aj says:

thanks alison….my state pennsylvania is starting it april 6th…i’m not happy about it at all

April 8, 2013 at 12:32 pm
(5) Unemployed says:

The cuts in the state of Indiana has greatly affected me and my family. It stated that there would be a 10% reduction, but I have seen a 50% reduction in benefits. My benefits went from 210.00 a week to 120.00 a week. Still looking for work however.

April 30, 2013 at 3:38 pm
(6) Down & Unemployed in California says:

I’m blown away yet again that the people who have worked for a living all these years and now need the safety net of unemployment are the first to get hit with a cut of almost 20 percent now on the Federal Extension benefits here in California. What troubles me even more is not being able to find employment after applying everywhere for a job, testing, interviewing, 2nd interviewing and still Nothing. I am deeply saddened by the outright disdain and anger aimed at the poor people like myself who lost our job in the last year. They level all sorts of nasty comments about , “Its about time to cut those leeches off the system”! or “maybe now they’ll get off their lazy butts and get a real job”. Do they really believe that anyone that has always worked for a living really wants to be on unemployment which is not even half of what a person makes, more like a third of their normal income earning. I’m waiting now to see if Congress acts to reverse this arbitrary measure so we at least receive what the maximum amount is allowed. I’m ready to go to the local food bank now and get some help paying the utilities. I was struggling before but this will be the anchor to sink the ship finally.

June 28, 2013 at 12:51 am
(7) D says:

These will be painful months, I was cut by 16.8% = 362.00 per month. The job market is not looking promising. Trying to stay hopeful to get back into the job market as soon as possible. Best Wishes to All!

Leave a Comment

Line and paragraph breaks are automatic. Some HTML allowed: <a href="" title="">, <b>, <i>, <strike>

©2014 About.com. All rights reserved.