unemployment cliff
At the end of this month, 71,000 long-term unemployed North Carolinians will lose federal extended benefits unless the state legislature acts soon. (Graphic from N.C. AFL-CIO.)

INSTITUTE INDEX: Will NC lawmakers push long-term unemployed off a cliff?

Date on which a North Carolina law takes effect that will end federal extended unemployment benefits for jobless residents: 7/1/2013

As a consequence, number of long-term unemployed North Carolinians who will stop receiving benefits after June 30: 71,000

Total number of North Carolinians who could lose access to unemployment benefits because of the law, which was pushed by the N.C. Chamber, the state's leading business lobby: 170,000

Per-employee annual increase in federal unemployment taxes that businesses were paying -- which the N.C. Chamber said "wasn't sustainable" -- to reimburse the federal government for money borrowed to finance state-funded benefits after unemployment spiked in 2008 following years of unemployment tax cuts: $21

Amount of federal benefits to which unemployed North Carolinians will lose access to under the law: $780 million

North Carolina's current unemployment rate: 8.8

Rank of the state's unemployment rate among the highest in the nation: 5

Rank of the state's unemployment rates for African Americans among the nation's highest: 4

Factor by which the unemployment rate for black North Carolinians exceeds that for whites: more than 2

Maximum number of weeks North Carolinians could receive extended unemployment benefits previously: 78

Number of weeks under the new law: 20

Number of other states that have chosen to end extended unemployment benefits: 0

Under a proposal rejected last week by the N.C. Senate, effective date to which the state law would have been changed, sparing people an abrupt loss of income: 1/1/2014

Estimated amount that the extended federal benefits pump into North Carolina's economy each week: about $20 million

Number of North Carolina advocacy groups that are calling on state lawmakers and Gov. Pat McCrory to take immediate action to stop the cutoff of extended unemployment benefits: more than 20

(Click on figure to go to source.)

At the end of this month, 71,000 long-term unemployed North Carolinians will lose federal extended benefits unless the state legislature acts soon. (Graphic from N.C. AFL-CIO.)
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Unemployed pushed off a cliff

I have been desperately trying (unsuccessfully) to find a job. I have lowered my salary requirements by a substantial amount even though I may not be able to afford my mortgage or utilities. I pay in installments as it is. It really won't make a difference anyway since I am going to lose everything under this new law. My extension just kicked in 2 weeks ago and now I will only receive benefits until the end of June! With the summer here, the college kids are all looking for work and internships as well. This decreases the possibility of many more people seeking to find employment.

I am scared to death and I have nowhere to go and no one to turn to. My house will be foreclosed on. I am going to be homeless. I am not eligible for the work first program since my daughter has just turned 21. We cannot afford college grants due to my ineligibility based on my 2011 income. I cannot get Medicaid because I am not disabled or pregnant.

"North Carolina ranks dead last among the states in the percentage of community college students with access to federal loans, according to a new report from the Washington-based Project on Student Debt.” Why did the state turn down help from the federal government? "North Carolina will lose roughly $600 million worth of extended jobless compensation paid entirely by the federal government".

I understand the NC legislature is claiming that the unemployment cut will "help small businesses from continued over-taxation", but these same small businesses are the ones that had to lay us off in the first place. After 7 years with the same company and having excellent performance for years, earning my raises, these same companies hired people as replacements with a pittance of the salary we were making. Prior to being unemployed, I worked in human resources and can affirm that the amount of money unemployment taxes the businesses is not substantial. "Fewer than one in six of the state's 175,000 private employers pay any state corporate income tax. In addition, a mere 217 corporations—representing less than one in 800 North Carolina private employers—would reap more than half the benefits of any corporate tax cut. Small business owners would see little benefit from the tax cut...” Additionally this country is continuing to give large companies tax breaks to outsource jobs.

NOW North Carolina legislature is trying to pass a bill to help parents pay for private schools??? Now teachers will lose their jobs and public schools will lose their funding. "In addition, there is nothing to show that this credit would benefit many special-needs students. The odds are good that most of the students whose parents take advantage of this credit will be those with mild disabilities. There are few, if any, private schools that will take students with severe physical, developmental or intellectual disabilities—and the ones that do specialize in special-needs students cost much more than the $6000 credit. (For example, full-time tuition at the Mariposa School for Children with Autism in Cary costs more than $50,000 a year...This bill would leave public schools with a greater share of students with significant needs, but they would have less money to provide services, which are mandated by federal law."

What is going on in this state? I have paid unemployment taxes for the last 18 years. For what? The republican legislature in NC only care about the upper class and the elite. They managed to give themselves a raise..... This is absolutely shameful. And these people believe that they are good Christians?


As of july 1st this is whats going to happen ,,170.000 people will be kicked of there only means of money comeing in as they look for work were there is none ,,the state of north carolina has given duke and progress engery a 20% hike in there monthy bills gas has rised ,and the cost of food ,, so the gov pat mccrory thinks he is doig a great job by kicking people off after the feds offer him over 700, billion to help more people with there checks ,, he turn it down ,,i remember pat saying i will never do anything to hurt my people in my state ,, well pat you just killed the people in your state ,, the crime rate will rise more people will get laid off like in leland 600 people were let go ,,on thursday june 20th ,, so this is what they get ,, a 20 week check for $350 max ,, ohh ya he droped the rate down from 550 week to $350 week ,, how are people going o live , pay there bills and find a job were there is none ,, in wilmington they have a ship yard , they should have over 3,000 people working there 24/7 in the month of may there were no ships in there at all ,so all these people who want to work will not get a job and go on welfare lets see the stats on that in july from april ,, it will be high ,, and don't worry ,, pat will cut that program too ,, love america ,, were the mexican get more for nothing and americans who pay in don't get nothing ,, great job pat ,, im so glad your a one term gov ,, you and all the people who turn against the north carolinians ,,

unemployment benefits

YEAH and? Unemployment benefits have run out for millions a couple of years ago:! This is no different than any other state? We had a promise of millions of new jobs and a better country but it didn't happen and our present financial status has only been improving because the FED has been putting 85 billion dollars into the economy regularly- once that stops? One of the problems is that we have millions of illegal immigrants in the country who are working with citizens being unemployed which creates a major problem for the next decade! There is nothing wrong with immigration but during a recession is not the time for a large number of illegal workers to enter the country?

Cheap Labor State

After the War Between the States, North Carolina became a notorious haven for cheap labor. In fact, a century ago, North Carolina was king of child labor. The state's power brokers were so intent on keeping poor folks beat down that they fought FOR child labor all the way to the Supreme Court of the United States TWICE and WON both times (Hammer v. Dagenhart [1918] and Bailey v. Drexel Furniture Co. [1922])!

For many Republican diehards, the 20th century has been largely an inconvenient workplace detour. They want to get back to the good old Robber Baron/Lochner Era (Lochner v. New York [1905]) when public education was NOT a necessary public expense in North Carolina (Barksdale v. Commissioners of Sampson County [1885]), child labor was legal (before the Fair Labor Standards Act of 1938), unemployed workers had no safety net (before the Federal Unemployment Tax Act), and blacks knew their place (before Griggs v. Duke Power Co. [1971]).

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