Sequester / The End Long-Term Unemployment Benefits In 11 States

States are having such a hard time implementing congressional cuts to long-term unemployment insurance that some workforce agencies might just cancel the benefits altogether.

The federal budget cuts known as sequestration require states to trim federal benefits known as Emergency Unemployment Compensation by roughly 10 percent. But what would seem like a simple administrative procedure is apparently a huge burden for some antiquated state unemployment systems.

Rich Hobbie, director of the National Association of State Workforce Agencies, said in written testimony during a congressional hearing on Tuesday that workforce agencies are in close communication with the U.S. Department of Labor about sequestration and that 11 might drop the compensation to comply.

“Eleven states are exploring terminating the [Emergency Unemployment Compensation] agreement with USDOL as an implementation option,” Hobbie said.

Chosen excerpts by Job Market Monitor

via Sequester Cuts Might End Long-Term Unemployment Benefits In 11 States.