GA Unemployment Benefits to be Cut Due to Sequester

The Georgia Department of Labor sent out a press release Monday informing the public that thousands of jobless workers in Georgia receiving federal Extended Unemployment Compensation (EUC) can expect a cut in those benefits effective from March 31. Sequestration is the reason for the cuts, according to the release. EUC is a federally funded benefit for long-term unemployed workers who have exhausted regular state unemployment insurance (UI) benefits.

According to the Department of Labor, Johns Creek's unemployment rate jumped to 7 percent in December, the most recent month for which figures are available, an increase from November's 6.6 percent number. That equates to 2,591 unemployed people in Johns Creek.

According to the Monday release, GDOL has been told by the U.S. Department of Labor to reduce EUC benefits by 10.7 percent effective from the week beginning March 31. There are reportedly 61,360 recipients of EUC in Georgia. The maximum weekly benefit currently is $330 and the average is $260. Regular state-funded unemployment insurance benefits will not be affected.

In addition, the federal government is reducing the labor department’s administrative funding grant, used to pay costs of administration of the UIF program, by about $3 million. According to the release, while the cuts will negatively impact operations, it is too soon to know to what extent.

The GDOL will notify recipients who will be impacted. Complete information will be available on GDOL website.

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