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AP Business Writer

RALEIGH, NC (AP) — North Carolina is cutting unemployment benefits for new claims beginning Sunday, a move that also makes it the first state disqualified from a federal unemployment compensation program for the long-term jobless.

State officials in February adopted a package of unemployment benefit cuts and increased costs on companies to repay $2.5 billion borrowed from Washington.

North Carolina needed the money after the Great Recession created a flood of jobless who needed benefits, draining the state’s unemployment fund.

But benefits cuts on those making unemployment claims on and after Sunday also disqualify North Carolina from receiving federal funds that kick in after state unemployment compensation runs out. The US Labor Department says about 170,000 workers whose six months of state benefits expire between July and January will lose more than $700 million.

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Comment on this Story

  • Ponder This

    The current state of affairs with NC’s unemployment benefits ending could possibly provide someone a Great Opportunity. Any seasoned street person will now be able to offer his/her services as speaker at seminars to teach the newly homeless how to survive without money in NC. Then our Great Governor can point to this and say he’s actually creating new jobs. Why, this could even become a success story for our illustrious state. Yay.

  • foundajob

    The dollar in my wallet that i earned looks the same as the dollar in another persons wallet that was given to them. I understand your logic, but the taxes i pay on consumption/income provides some public/private good because i earned it while the same dollar that is given to someone does nothing for the public good. There are jobs out there people just have to look hard and be willing to accept things until times get better. We have got to get out of this welfare/entitlement state of mind.

  • Vog46

    blind legislators don’t get is this simple axiom.
    Part of my paycheck is the *food stores* profit (substitute any store you’d like for food store).
    If I cut back then several other entities hurt.
    If 70,000 cut back MANY entities get hurt.

    But we shall see…….


  • Guestthug

    Now there’ll be even LESS money to put back into the economy. And the federal programs like food stamps will see an increase in recipients.

    It’s unfathomable how this move HELPS anyone in the state. It just makes NC look backwards and ignorant—I guess that’ll help attract good, high-paying industry, right?

  • Guestg

    All you hard-working folks with jobs better get your guns ready because crime, poverty and homelessness are going to make the unemployed desperate. Just shoot all those hungry kids-that’ll reduce classroom sizes, too. Win-win!

    The GrossOldPiggies only care about the corporations and their rich donors….not you.

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