2013-04-04 / News

Unemployment will be effected by sequester

The state Department of Labor and Training announced Tuesday that beginning April 21 weekly benefits for the Federal Emergency Unemployment Compensation program will be reduced by 12.2 percent due to the federal sequestration.

Because unemployment claimants receive benefits one week after they are accrued, these reductions will not be reflected in benefit payments until the week of April 28.

The Emergency Unemployment Compensation program is a federally funded benefit program that allows long-term unemployed job seekers up to 47 additional weeks of insurance beyond the 26-week maximum offered through regular insurance.

The department estimates that up to 8,000 Rhode Islanders may be impacted by these benefit cuts. This represents an estimated loss of $1.5 million in total benefits each month.

Triggered in January 2013 when Congress failed to reach consensus on deficit reduction, federal sequestration requires automatic across-the-board cuts to all federal spending, including unemployment benefits.

This reduction does not impact those who receive regular unemployment benefits, which are funded on a state level.

Along with unemployment, the White House says that education will also be hit hard by the sequestration. The state will lose about $2.4 million in funding for primary and secondary education, putting about 30 teachers jobs at risk and affecting the funding to 10 fewer schools.

Return to top