The American Recovery and Reinvestment Act (ARRA) authorized several extensions and supplements to unemployment insurance payments. One provision requires the federal government to supplement weekly insurance payments by $25. In April, North Carolina will begin paying those supplements retroactive to the week of February 28th.
While seemingly modest, the supplemental payments will benefit individuals struggling with a job loss and the state’s overall economy. Estimates prepared by the N.C. Budget & Tax Center find that, had it existed in February, the supplemental program would have provided an additional $26.7 million to unemployed Tar Heels. Because most unemployment insurance payments are spent quickly and locally, the supplements, in turn, would have generated some $43.8 million in economic activity across the state.