This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Benefits Cut For Long-term Unemployed Alabamians

MONTGOMERY, Ala. (AP) â¿¿ Many long-term unemployed Alabamians will see their benefits drop 12.8 percent on April 28.

State Labor Department spokeswoman Tara Hutchison said the reductions are the result of mandatory federal spending cuts that all states must make. The cuts will affect people who have been receiving unemployment benefits for more than six months. Currently, about 16,500 Alabamians receive the extended benefits.

The 24,000 Alabamians who have been receiving benefits for less than six months won't be affected. That's because the first 26 weeks of benefits are paid by the state, but those beyond 26 weeks are paid by the federal government. The cuts will be in effect for the weeks beginning April 28 through Sept. 30.

Keivan Deravi, an economist at Auburn University Montgomery, said the cuts are significant because unemployment benefits are a safety net for people to get the necessities of life. "Many of them don't have a savings account so if the benefits for removed, that void will be significantly felt," he told The Anniston Star.

The amount that each state is cutting back depends on when the state implements the reduction. States that cut back shortly after the mandatory reductions began had a 10.7 percent cut. Alabama is in the second wave at 12.8 percent. States that make the cuts later will see reductions of 16.8 percent or 22.2 percent. Hutchison said Alabama was in the second wave because of the time it took to implement the changes, including computer programming.

"We did it as fast as we could," she said.

Hutchison said the average weekly benefit in Alabama is $207 and the maximum is $265. The maximum length for benefits is 63 weeks.
Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs