State Cuts to Unemployment Benefits

Unemployment benefits shrink in some states, By Alana Semuels, August 4, 2011, Los Angeles Times: “Several states are making sharp reductions in unemployment insurance benefits, accelerating the number of jobless people running out of government assistance, according to a report from the National Employment Law Project. The cuts come as states’ unemployment insurance funds face insolvency, forcing many to borrow more money from the federal government. At the end of July, 30 states had borrowed a total of $40 billion to pay for unemployment insurance benefits, and they must begin paying interest on those loans Sept. 30. Cuts to the programs take away a lifeline for unemployed workers, the advocacy group said…”
Unemployment benefits at risk, By Tami Luhby, August 4, 2011, CNNMoney.com: “The debt ceiling agreement did little to help the millions of jobless Americans whose federal unemployment benefits are set to run out early next year. The unemployed had hoped that the debt ceiling deal would include an extension to file for federal unemployment benefits. But in the end, policymakers focused only on cutting federal spending. As it stands, most people laid off today will not be eligible to collect federal unemployment benefits after their state benefits run out. And those collecting federal benefits could find themselves cut off before receiving the full number of weeks for which they are now eligible…”