Over the past year, four emergency federal extensions passed by lawmakers within the congress allowed federal unemployment benefits to be paid to claimants for up to 73 weeks, after the initial period of 26 weeks of state funded benefits had been exhausted.
Unfortunately, an approval for a further extension could not be obtained and the last extension expired on the 31st of December 2010, reducing the total number of weeks claimants will be eligible to receive money for from 99 to a maximum of 26 weeks.
This is expected to have a particularly bad impact on New Jersey, one of the states which had previously received the 73 week extension. With unemployment rates as high as 9.2 per cent in October, New Jersey state continues to struggle with high unemployment.
As from the 1st of January 2011, first time claimants will only be eligible to claim benefits for a maximum of 26 weeks. The 400,000 already present New Jersey claimants are likely to see their benefit terms drastically shortened, although the majority of them will be allowed to claim for at least another 20 weeks.
The funding for these 20 weeks will be shared by federal and state governments. So far, there has been no estimate as to how much this will cost the state of New Jersey.
Since the recession began, approximately 120,000 New Jersey residents have already exhausted both their state and federal benefits.
To add to the overall problem, the maximum payable weekly benefit, currently standing at $600, is also likely to be reduced as a result of being calculated according to and based on annual average wages paid during 2009.
How New Jersey and its residents are going to cope with this in the long term is anybody's guess; one can only hope for timely improvement.
Unfortunately, an approval for a further extension could not be obtained and the last extension expired on the 31st of December 2010, reducing the total number of weeks claimants will be eligible to receive money for from 99 to a maximum of 26 weeks.
This is expected to have a particularly bad impact on New Jersey, one of the states which had previously received the 73 week extension. With unemployment rates as high as 9.2 per cent in October, New Jersey state continues to struggle with high unemployment.
As from the 1st of January 2011, first time claimants will only be eligible to claim benefits for a maximum of 26 weeks. The 400,000 already present New Jersey claimants are likely to see their benefit terms drastically shortened, although the majority of them will be allowed to claim for at least another 20 weeks.
The funding for these 20 weeks will be shared by federal and state governments. So far, there has been no estimate as to how much this will cost the state of New Jersey.
Since the recession began, approximately 120,000 New Jersey residents have already exhausted both their state and federal benefits.
To add to the overall problem, the maximum payable weekly benefit, currently standing at $600, is also likely to be reduced as a result of being calculated according to and based on annual average wages paid during 2009.
How New Jersey and its residents are going to cope with this in the long term is anybody's guess; one can only hope for timely improvement.
