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Current Events & Hot Topics Current Events & Hot Topics

NC becomes 1st state to drop federal jobless funds

Posted by on Jun. 28, 2013 at 6:45 AM
  • 105 Replies

RALEIGH, N.C. (AP) — With changes to its unemployment law taking effect this weekend, North Carolina not only is cutting benefits for those who file new claims, it will become the first state disqualified from a federal compensation program for the long-term jobless.

State officials adopted the package of benefit cuts and increased taxes for businesses in February, a plan designed to accelerate repayment of a $2.5 billion federal debt. Like many states, North Carolina had racked up the debt by borrowing from Washington after its unemployment fund was drained by jobless benefits during the Great Recession.

The changes go into effect Sunday for North Carolina, which has the country's fifth-worst jobless rate. The cuts on those who make unemployment claims on or after that day will disqualify the state from receiving federally funded Emergency Unemployment Compensation. That money kicks in after the state's period of unemployment compensation — now shortened from up to six months to no more than five — runs out. The EUC program is available to long-term jobless in all states. But keeping the money flowing includes a requirement that states can't cut average weekly benefits.

Because North Carolina leaders cut average weekly benefits for new claims, about 170,000 workers whose state benefits expire this year will lose more than $700 million in EUC payments, the U.S. Labor Department said.


http://www.seattlepi.com/news/us/article/NC-becomes-1st-state-to-drop-federal-jobless-funds-4631817.php


What are your thoughts on this? Do you think more states will do the same? 

by on Jun. 28, 2013 at 6:45 AM
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Replies (1-10):
NWP
by guerrilla girl on Jun. 28, 2013 at 7:54 AM
1 mom liked this
Austerity is a proven fail
stormcris
by Christy on Jun. 28, 2013 at 7:55 AM
1 mom liked this

As far as keeping the economy going yes.

Quoting NWP:

Austerity is a proven fail


illogicalkat
by Bronze Member on Jun. 28, 2013 at 8:16 AM
3 moms liked this

I think that crime rates are going to skyrocket in North Carolina in less than a year.

stormcris
by Christy on Jun. 28, 2013 at 8:18 AM

That could be.

Quoting illogicalkat:

I think that crime rates are going to skyrocket in North Carolina in less than a year.


DieselsMom
by on Jun. 28, 2013 at 8:24 AM
7 moms liked this

I bet the unemployment rate drops now!!! It is funny how when people don't get handouts, they go back to working for what they need!

stormcris
by Christy on Jun. 28, 2013 at 8:29 AM
1 mom liked this

I am betting they don't. Industry has left NC. Their main production was furniture and the competition from China has been rough. They do have a couple of points of interest in that foreign interests have been investing but these sort of investments usually entail a surge of immigration for their own national workers.

Quoting DieselsMom:

I bet the unemployment rate drops now!!! It is funny how when people don't get handouts, they go back to working for what they need!


illogicalkat
by Bronze Member on Jun. 28, 2013 at 8:33 AM
9 moms liked this

The unemployment rate will only appear to drop because the unemployed will no longer be ccollecting their unemployment insurance benefits. UI is not a handout, workers pay into it with every single paycheck they earn.

And cutting unemployment benefits does not create jobs. People who receive UI are actively seeking work, otherwise they lose the benefit. And unemployment pays barely enough to cover bills, for a finite amount of time, so why on earth would people stay on it if they are offered a real job? Answer: they don't.

Quoting DieselsMom:

I bet the unemployment rate drops now!!! It is funny how when people don't get handouts, they go back to working for what they need!



DieselsMom
by on Jun. 28, 2013 at 8:42 AM


Actually, they only pay in for the first weeks...the extention, is a hand out!!! which is probably why NC is saying no more, and you only get what you paid in to....also, my guess is, there are job, just not the ones these people "want" if they get a job making the same amount they were making on unemployment, they likely sit at home collecting vs working. Now, they wont have that opportunity so more people will be getting jobs. Just like those who abuse foodstamps, etc....people do abuse unemployment, ESPECIALLY with the extention....BTW, I know someone personally that was "actively seeking work" and that part, is a joke!

Quoting illogicalkat:

The unemployment rate will only appear to drop because the unemployed will no longer be ccollecting their unemployment insurance benefits. UI is not a handout, workers pay into it with every single paycheck they earn.

And cutting unemployment benefits does not create jobs. People who receive UI are actively seeking work, otherwise they lose the benefit. And unemployment pays barely enough to cover bills, for a finite amount of time, so why on earth would people stay on it if they are offered a real job? Answer: they don't.

Quoting DieselsMom:

I bet the unemployment rate drops now!!! It is funny how when people don't get handouts, they go back to working for what they need!





GLWerth
by Gina on Jun. 28, 2013 at 8:43 AM
5 moms liked this

Wow, cutting benefits creates jobs? Can you explain how that works?

So, you cut benefits and people have no income whatsoever and somehow, that makes companies that had no available jobs before this have them. Is it sudden or gradual?

I'm sure you should be on all the Sunday morning shows, teaching about this miraculous economic phenomenon!


Quoting DieselsMom:

I bet the unemployment rate drops now!!! It is funny how when people don't get handouts, they go back to working for what they need!


 

SilverSterling
by MrsSilverusSnape on Jun. 28, 2013 at 8:45 AM
2 moms liked this

Further Proof I need to leave this God forsaken state

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