Sequestration to Impact 61,360 Georgia Unemployed

The Georgia Department of Labor announced that thousands of jobless workers in Georgia receiving federal Extended Unemployment Compensation (EUC) can expect a cut in benefits effective March 31.

Sequestration is the reason for the cuts, according to a press release issued by GDOL. EUC is a federally funded benefit for long-term unemployed workers who have exhausted regular state unemployment insurance (UI) benefits.

According to the press 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.

The Atlanta area's unemployment rate for December was 8.4 percent. This area includes Gwinnett County.

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 at www.dol.state.ga.us.