NELP: Sequester Takes a Major Toll on the Unemployed

"With the sequester deadline fast-approaching, NELP prepared a short analysis documenting the devastating impact that the massive budget cuts will have on unemployed workers collecting federally funded benefits, on the overburdened state claims process, and on the delivery of critical reemployment services.

"Of special note, the analysis shows that 2 million workers will have to absorb an 11-percent reduction in their federally-funded unemployment benefits, starting most likely in April when most states make the challenging programming changes necessary to implement the cuts. By the end of the fiscal year, that number will grow to nearly 4 million, totaling $2.3 billion in benefit cuts to the long-term unemployed.

"Also significant, the state agencies that process state and federal unemployment benefits will lose nearly $200 million in administrative funding, which comes at a time of unprecedented challenges that have already seriously compromised the delivery of UI services and benefits. In addition, the Department of Labor projects that one million workers will lose out on critical reemployment services and training necessary to get back on their feet while the economy still struggles to recovery."

For more information, please see NELP's briefing paper on the sequester.


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