As state begins paying off debt, local economies benefit from unemployment funds (video)

Since the start of the Great Recession in 2007, North Carolina has paid out more than $12 billion in unemployment benefits.

David Clegg, Deputy Chairman of the N.C. Employment Security Commission, says the state has borrowed $2.5 billion from the federal government over the last two years, to ensure that the weekly benefits are delivered in a timely fashion.

But as this week draws to a close, North Carolina must repay $78 million dollars in interest to the federal government on what it has borrowed thus far.

About 40 other states are in a similar position and are hoping that Congress will forgive the interest owed on the debt.

Clegg joins us on News & Views this weekend to discuss how the middle-class recession is reshaping North Carolina and the important role of unemployment benefits for local economies.

For a preview of Clegg’s radio interview with Chris Fitzsimon, click below:
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One Comment

  1. Jimmy

    September 30, 2011 at 11:12 am

    I wouldn’t say we are paying off this huge debt when we are simply paying the interest amount. This will be a huge burden on the state going forward.