So the unemployment cliff is here, the day when the legislation to overhaul the state’s unemployment insurance system takes effect. In a series of blog posts last week, we highlighted what it will mean. In case you missed it, here is a summary:
- North Carolina will no longer have an unemployment insurance system in the middle of the pack but will be the lone state to reject federal unemployment benefits and fall behind on measures of benefit support, tax rates and other measures of program effectiveness.
- North Carolina will restrict eligibility by eliminating access to unemployment insurance for workers who quit for a range of family or health reasons.
- North Carolina will require unemployed workers to take any job that pays 120 percent of the average weekly benefit amount. Under the current average weekly benefit amount that would mean requiring a jobless worker to take job that pays on average $8.90 per hour after just 10 weeks of looking for work.
- North Carolina will not implement forward financing, and instead reduce the effectiveness of the unemployment insurance system to protect the economy in downturns.
- North Carolina will not see job creation as a result of its changes to unemployment insurance system and could, in fact, see economic challenges.