Thousands of Georgia's Unemployed to Feel Sequestration Effects

Thousands of jobless workers in Georgia receiving federal Extended Unemployment Compensation can expect a cut in those beneficts effective March 31, the Georgia Department of Labor said in a news release Monday

Federal sequestration is the reason for the cuts, according to the release. Extended Unemployment Compensation is a federally funded benefit for long-term unemployed workers who have exhausted regular state unemployment insurance benefits.

According to the release, GDOL has been told by the U.S. Department of Labor to reduce extended benefits by 10.7 percent effective the week beginning March 31. There are reportedly 61,360 recipients of extended unemployment benefits in Georgia. The maximum weekly benefit currently is $330, and the average is $260. Regular state-funded unemployment insurance benefits will not be affected.

In addition, the federal government is reducing the Labor Department’s administrative funding grant, used to pay costs of administration in the unemployment program, by about $3 million. According to the release, while the cuts will hurt 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.