NC Becomes 1st State To Drop Federal Jobless Funds

(Photo by CESAR MANSO/AFP/Getty Images)

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.

Lee Creighton, 45, of Cary, said he’s been unemployed since October, and this is the last week for which he’ll get nearly $500 in unemployment aid. He said he was laid off from a position managing statisticians and writers amid the recession’s worst days in 2009 and has landed and lost a series of government and teaching jobs since then — work that paid less half as much. His parents help him buy groceries to get by.

“I’m just not sure what I’m going to do,” said Creighton, who has a doctorate. “What are we to do? Is the state prepared to have this many people with no source of income?”

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6 Responses to NC Becomes 1st State To Drop Federal Jobless Funds

  1. David says:

    Since Lee Creighton is not registered to vote in North Carolina:
    1. There is no Lee Creighton -- the person is fictitious.
    2. It is an alias.
    3. He does not vote.
    4. He votes multiple times -- an Obama supporter.

  2. O woe is me! Poor baby Creighton.

    Of all the animals, humans posses the greatest ability to adapt and overcome. Those that cannot adapt will not survive

  3. merlin1246 says:

    “I’m just not sure what I’m going to do,” said Creighton, who has a doctorate
    >>>>> I think he can join the growing ranks of Starbucks baristas with Ph.D’s.

  4. Lee Creighton-
    On twitter, his account is: https://twitter.com/leecreighton
    LOW Followers
    LOW Following
    MANY tweets
    Tweets protected

    YES indeed, he is an obama plant working for the OFA and OFAFELLOWS, UNITEBLUE crowd

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