Pain ahead for North Carolina's unemployed

The state is cutting its weekly aid to the jobless and moving off of a federal compensation program.

By Kim Peterson Jun 28, 2013 1:30PM
Man reading job listings © Tetra Images, Tetra images, Getty ImagesNorth Carolina has the fifth-worst jobless rate in the country. Now the vast ranks of the unemployed there are about to see a huge drop in aid from the state and the federal government.

Starting this weekend, unemployed residents will see the maximum weekly payment drop to $350 from $535. And that's the maximum amount -- many will receive less. The $535 a week the state had been paying was the highest in the Southeast, The Associated Press reports. Now the level is about even with what neighboring states pay.

That's not all. The state has cut back its window for unemployment pay to five months from six.

Normally in America, jobless folks can count on the federal government to pick up the slack when state payments run out. Not anymore in North Carolina.

That's because by cutting its jobless benefits, the state is now disqualified from the federal program that gives aid to the long-term unemployed. It's the federal government's way of making sure states keep up their share of jobless payments.

Now North Carolina becomes the first state to be disqualified from federal Emergency Unemployment Compensation, AP reports.

Why the hard line? Because North Carolina owes $2.1 billion to the federal government, and it needs to start paying the debt back. It borrowed from the federal government when it ran out of unemployment money in the Great Recession -- and its debt soared to the third-largest in the country. Now it expects to pay back its debt in 2015 rather than 2018, according to AP.

North Carolina companies will also take on some of the debt-repayment burden. The changes in the law now require companies to pay an extra $42 per worker every year toward the debt. Before the new law, companies had been expected to pay only an extra $21 per worker.

More on moneyNOW

81Comments
Jun 28, 2013 2:27PM
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Anyone GETTING IT YET? Take off the blinders and admit your mistake!
Jun 28, 2013 2:45PM
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I have for the past 5 years continued to read some of the postings and you guys really make me laugh.  I love the passion and the jokes but some of you REALLY need to get more information before speaking out.  Don't get so emotionally about things until WE all can come together and make the changes in Government that are needed.  We all know that even if the OLD HEADS step aside a lot of the Young Guns coming into office are only in it to see what they can either put in their pockets or provide hookups for their new and old friends.  Let's all grow up a bit.
Jun 28, 2013 3:51PM
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The LORD will provide to those in N.C.. How's that for being a church buddy.
Jun 28, 2013 2:32PM
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Well I guess alot of folks took heed to all the signs this past election "vote the bible" I reallly don't think this was what they had in mind. We are well on our way to moving Mississippi up the list in all  categories.I was once proud of this state, now I am ashamed to tell someone where I'm from.

 

Jun 28, 2013 2:35PM
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Even North Carolina seems to be breaking ties with the Washinton Taliban.
Jun 28, 2013 3:48PM
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The reason they did this is because the federal government loans the states money to give out as unemployment payments. The state does not want the loans anymore and had moved to limit their states debt. Sounds like a smart state to me. Of course if you’re bleeding lib that wants to grant illegal immigrants citizenship with a sky high unemployment rate then you will be complaining about why they did this.

Jun 28, 2013 2:40PM
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You airheads, Pat M who was once the big dog in Charlotte voted not to take the extra money alloted to the 50 states.  Because of this NC must make cuts it's not a Democratic or Republican deal.

Jun 28, 2013 4:00PM
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Take a look at who the riches democrats are and how they become rich. Social welfare is usually the case, or they own a business they suck off the government. Dianne Feinstein is worth 150 million for this type of work. Only in California can you have your cake and eat it too. We are bankrupt here in California, but no one wants to admit it. Dam you Texas for being the #1 eight years in a row and steeling our spot light, even if you earned it. Oh wait thank god you did not let that white girl in Texas University. You’re ok with the democrats. Lol what a joke

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PS NC has attorneys whom have doctors, whom have psychiatrists who will make certain you collect what is now nearly out of funds for those really injured...SSI or SSD...thanks to corruption those whom have worked and been incapacitated...the fat butt do nothings continue...
Jun 28, 2013 2:39PM
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I guess in NC the dems wil have to take unemployment off the list of career choices. Now they are left with minimum wage jobs and welfare as their main choices.
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1992 NC only had 80,000 illegals, now there are millions..and with the new AMNESTY if all of you who sit and vent or are on Welfare...and those whom have never been off do nothing: expect to be out in the streets...because the Communist Chinese do not put up with 2 legged parasites.
Jun 28, 2013 10:28PM
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So sad. I guess they will have to find a job and go to work every day like I do.
Jun 28, 2013 2:34PM
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If I were running the State just file bankrupt, and call it a day! If I were living there I would move! If you work for the State, or are a police Office, or Firefighter, or a school teacher or work in any other job for which you would one day draw retirement from the State you should see the writing on the wall the State will not be able to pay for it. As far as those that protect the State, well if the State is having issues now, you need to consider car the State afford to pay you to work for the City or State? I do not see any pay raise in the near future there! And if so many can not find work in just a few short months then then maybe consider Truck Driving or move to a State where there are jobs. There are Over Seas jobs in which a Husband could go work while the wife stays home with the kids. Same with trucking go get a CDL, the money is good, and you can come home every two weeks. There are jobs just have to look or except that you may have to change the type of work you are use too. Go online look at KBR, they pay good or look at off shore rigs they pay good. There is work out there people you just have to go look beyond the drive way of your house!
Jul 2, 2013 11:00AM
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I was thinking about moving there and buying a house.  Not anymore.  F... them, I think I will stay in Virginia.


Jun 28, 2013 2:22PM
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All states should have a 3 month max for benefits which only renews every 2 years.

 

 

Jul 1, 2013 6:49PM
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Have you ever wondered why Republicans are so interested in encouraging people to volunteer in their communities? It’s because volunteers work for no pay. Republicans have been trying to get people to work for no pay for a long time.
Jun 28, 2013 2:09PM
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The people of North Carolina better think real hard come their next state elections . You have no one to blame but your voters . The GOP is out to cut the throats of the middle class republican or democrat .. Facts are facts ...I thought being a right to work state was to create jobs ? LMFAO all it did was make non union scab people collect benefits off my dues my paycheck and union ! << Who says republicans don't like welfare ? LMFAO Moochers... I am a so called REAGAN democrat who votes for people who supports my issues , balanced budgets , small government , I love my GUNs and fishing and hunting . And yet idiots on this board thinks I'm a Lib like i care ? I'm a conservative democrat and there are a lot of us out their ! REAGAN , IKE, and the sorts would throw up seeing the GOP today . No more moderates any more . That's the problem with the GOP .I love my union they give me a great living pensions and benefits bargained for me ...But republicans when they wanted right to work states made laws that FORCE my union bargained benefits to non due paying and non union people ? That's wrong being a scab mooching off my DUEs paycheck and union .. That's why the GOP today does not get a lot of votes for POTUS I'm too close to collecting soc sec , 6 yrs out and i need a POTUS that will not cut my soc sec this late in the game for me ! Republican politicians today are out to cut my throat , not because I'm a democrat or a republican ? Because I'm a middle class American that's why... DUH...

Jun 28, 2013 2:30PM
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Blame the current administration for this for sending all our money and jobs overseas.  If more jobs were in the US, we wouldn't have a problem. We are in year five of this.
Jun 28, 2013 5:25PM
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The South is preparing to re-fight the Civil War, this idiocy is a dangerous move to radicalism. So called family values has always been a smokescreen for selfishness and greed.
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Force all of the unemployed to move out of state before they starve to death, now there's a solution right out of the mouths of knucklehead republicans.  It's like throwing your dogs crap over the fence into your neighbors yard.
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