The Worst People in the World
Starting next week, North Carolina—which has the fifth highest jobless rate in the country—will become the only state in the union with no safety net for the long-term jobless. Thanks to reforms in the state’s unemployment insurance laws, North Carolina’s 71,000-plus long-term unemployed residents will lose access to the federally funded Emergency Unemployment Compensation (EUC) program.
North Carolina is losing eligibility to the federal program because of a new law, signed by the governor in February of this year, which reduces the number of weeks that unemployed people are eligible for state-funded benefits and cuts the maximum weekly benefit amount by roughly one third, from $535 to $350. It is the latter provision that has cost North Carolina workers its eligibility: States looking to receive federal EUC money are forbidden from cutting weekly benefits. The federal government granted a special exemption from that rule to four other states last year, North Carolina’s request for a similar exemption was ignored.
“I would call these cuts obscene,” said Michael Leachman, director of state fiscal research for the Center on Budget and Policy Priorities.