Officials: Unemployment benefit extension good for Michigan
Sean HarkinsWith an unemployment rate already at 9.3 percent and possibly rising, there was some good news for Michiganders on Friday.
President George W. Bush signed legislation extending unemployment benefits for up to 20 additional weeks in certain states.
Standard unemployment benefits span 26 weeks, but during these turbulent economic times, that had been expanded to 39. With the legislation signed Friday, the unemployed qualify for seven additional weeks. In states with unemployment rates over 6 percent, workers qualify for 13 extra weeks - for a total of 59 weeks.
While that is over double the original benefit period, Michigan Department of Labor and Economic Growth spokesman Norm Isotalo said it is a good thing for the state.
"We definitely see it as a shot in the arm for unemployed workers in Michigan, it will supply them with some additional income," Isotalo said.
He said 56,000 Michigan workers are currently receiving benefits in the first extension period of 26-39 weeks.
"These workers will likely move into the second tier," Isotalo said.
An additional 63,000 workers exhausted the original extension and will be contacted to receive the benefits from the new extension.
"We're assuming most of those workers have not returned to work and as a consequence would be applying for this new extension," Isotalo said.
He said extensions are not unusual when the economy is doing poorly.
Congressman Bart Stupak and Sens. Debbie Stabenow and Carl Levin each voted for the legislation.
"I have heard from workers across northern Michigan who are out of work and struggling to find employment," Stupak said in a press release. "More Americans are looking for jobs than at any time since 1992. With costs increasing for necessities such as food and health care, these individuals need our help particularly through this holiday season while they look for work or retrain for a new career path."
Isotalo said the additional money needed to pay for the benefits will be covered by the federal government, and he said the MDLEG is awaiting instructions on how to handle the new benefits.
"We're moving ahead in planning for this, but we haven't received a lot of direction from the US Department of Labor," he said.
Sean Harkins can be reached via e-mail at sharkins@thealpenanews.com or by phone at 358-5688.
