California’s hard-hit jobless received another dose of bad news –they will lose their federal extension unemployment benefits — some in the next few weeks and all by the end of the year.
A declining jobless rate and improving economy has prompted the move, according to the state Employment Development Department.
About 100,000 people will be affected by the decision in the next few weeks. At least 275,000 more will lose assistance by the end of the year.
More than 750,000 people are collecting jobless benefits in California, with more than half receiving funds from the federal extension program.
California’s three-month jobless rate average has dropped below 9%, the minimum level required for the final 10 weeks of the Tier 4 federal extension, according to federal guidelines.
Anyone who files for the Tier 4 extension on or after Aug. 11 is not eligible for the benefits. Those who apply and are eligible for Tier 4 benefits before Aug. 11 will receive funds until Dec. 28.
Tier 4 benefits assist jobless residents who exhausted their 26-week, state-provided benefits and the first three tiers of the federal extension.
“The EDD knows just how vitally important unemployment benefits can be to out-of-work Californians and their families,” says EDD Chief Deputy Director Sharon Hilliard. “We want to make sure that our customers have as warning as possible about reduced benefits so they can plan their personal finances accordingly.”
All federal extension benefits will end Dec. 29. The federal effort provided unemployment assistance for up to 99 weeks.