Michigan To Lay Off 400 Unemployment Workers

michigan lay off unemployment workers

By Tami Luhby

NEW YORK -- Many jobless claims workers in the state of Michigan will soon be filing for unemployment themselves.

About 400 state workers who process unemployment claims are losing their jobs, thanks to Michigan's improving economy. The state had beefed up its staff with more than 175 temporary workers in early 2009, when weekly jobless claims topped 500,000 and the unemployment rate was on its way to a 14.2 percent peak.

But the revival of the auto industry has turned around Michigan's fortunes -- the state's job growth outpaced the nation's in 2011. The unemployment rate has steadily declined to its current 8.6 percent. And jobless claims have plummeted to 187,000.

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When the unemployment rate drops, so does the federal support for administering benefits. Without those funds, Michigan will have to let go of the temporary workers, as well as 225 permanent staffers, totaling about one-fifth of the Department of Licensing and Regulatory Affairs' staff.

"Unfortunately for them, the economy has gotten better," said Mario Morrow, spokesman for the department. "It's a good news/bad news situation."

Michigan is not the only state laying off or reassigning workers who staffed unemployment benefits call centers and processed claims. With the economy recovering, about half the nation's states are dealing with reduced federal funding, forcing them to make staffing changes.

Also, President Obama's 2009 stimulus act doled out even more money to help cover states' increased unemployment benefits caseloads. But those funds have pretty much dried up.
So even states where the jobless rates are still high are forced to make changes.

In California, which has the nation's third-highest unemployment rate at 10.7 percent, the state has shifted unemployment workers to disability insurance and tax processing after losing federal support.

Rhode Island, meanwhile, laid off 65 workers, most of them on temporary assignment, after running out of stimulus funds. This comes even as the state still battles a 10.9 percent unemployment rate, the second-highest in the nation.

The state would need $4.6 million to keep them on for another year, said Laura Hart, spokeswoman for the Department of Labor and Training.

"We couldn't stretch it any longer," she said of the additional federal administrative funds.

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Few things that AOL puts into print is believable. The bottom of the barrel, those characters are.

August 08 2012 at 3:45 AM Report abuse rate up rate down Reply
Keep on Track!!!

All this stuff is BS as some of you have already said.
In Michigan, you would have to sit in this large room and just wait to be called up to be evaluated and
fill out the papers,etc. Then several years ago, they FINALLY, got a little automated and could call it in .
If the govt has your name, SSN, and your payroll stubs from the IRS, WHY do you need to sit in a room for hours or even have a "person" process the claim? It should ALL be computerized. The auto plant should also be automated like the japanese plants and then retrain our workers with the savings.

Yes, that is 80,000 people who exceeded 99 wks some how qualified for disability. Meanwhile 75,000 aliens got permanent worker visas and 75,000 NEW jobs were added last month. What is wrong with this picture?

Q6 says that when you include those who were working when Obama become King, plus unemployed, plus those who exceeded 99 days of unemply and NO longer are a statistic, PLUS the under employed who are ready , willing and able to work but CANNOT find a FULL TIME job; that rate is 15-17% while about 2 wks ago it was 22.8%. 1 in 6 or 7 on food stamps, etc.. Know that our $$ is losing its currency value as well. All our CD, IRA, securities etc are based on the DOLLAR. check into it. Go READ the AMATEUR book Klein's book. Just wait when obama takes away your CD and IRA's !! Just watch this tyranny coming to a town near you. What president fired the CEO of private industry and installed his own guy, grabbed the company and gave 30% to un educated in finance union bosses. You would think the union would PROTEST all the illegal aliens coming over the border. They caught 234,000 plus this last year. Just wait for the spanish speaking terrorists who are coming in from the south after going through spanish language education. Have you noticed the spanish speaking soap operas that are supposed to be in Muslim countries? There is a big conversion of latinos to islam..

August 07 2012 at 11:21 PM Report abuse -1 rate up rate down Reply

I can remember going to the unemployment office in chicago in the early 90's. No matter what time of day you went the place always had a line out the door. They never had more than 1 receptionist to take your info even though there was suppose to be 4. I never saw more than 1 or 2 case workers helping people, but I did see alot of office chatting groups, a couple playing games on the computers, several standing around doing nothing. if the michigan offices are anything like chicago, they deserved to lose their jobs. I dont know why people get a government job and they think it gives them the right to be a lazy POS.

August 07 2012 at 11:21 PM Report abuse rate up rate down Reply

I am soo pissed to hear this. I was listening to Rush Limbaughs show 3 weeks ago and he stated that the way to go after unemployment ran out for thousands is to file for disability. This is disguisting!!! I live in NC and have been on appeal from disability for three years with Neuropathy. Healthy people that are applying are getting benefits within 30 days. WTH?? Oh, and lets not forget the black youth that have disability ages up to 30. What disease do they have?? They also get disability benefits withinh 30 days after applying. No wonder the states are going broke!!!!!

August 07 2012 at 7:51 PM Report abuse rate up rate down Reply

No offense, but this is what they deserve. The unemployment workers are sooo nasty. Now you know how it feels to not survive

August 07 2012 at 7:44 PM Report abuse rate up rate down Reply

Oh, B.S. tell the truth the economy still sucks so bad that there is talk of more stimulus, MAN SUCH LIARS!

August 07 2012 at 6:17 PM Report abuse rate up rate down Reply

I feel sorry they lost their jobs, BUT now they can 1st hand experience the BS we all thru trying to talk to someone, get someone to answer the phone and all.

August 07 2012 at 6:10 PM Report abuse rate up rate down Reply

Lots of UNEMPLYMENT WORKERS were laid Off in 2010-2012???? One of my friends worked there & she was laid off in 2010. Now since then others have been LAID OFF!!!!!!!!!!!

August 07 2012 at 4:58 PM Report abuse rate up rate down Reply

You grab people off the street, give them an 8 hour course on how to process unemployment claims, then when employment increases you while about having to let them go?

What exactly is it that the media wants? MI is getting its job back on, and this is the reporting being done?

August 07 2012 at 3:30 PM Report abuse rate up rate down Reply

You get the third degree for a crap job from unqualified interviewers whose lack of knowledge of the poor job market for olders works is incredible. Millions have gone from one short term job to another because of the decline of their manufacturing field only to find few interviewers capable of understanding how that can cause job gaps. Desperate youth with little other experience can't comprehend the struggle or experience of their elders so they offer them farless than their worth.

August 07 2012 at 1:34 PM Report abuse +1 rate up rate down Reply

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