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.