Marketplace Today Blog

By Katelyn Ferral
Milwaukee Journal Sentinel

Less unemployment isn’t always good news for everyone.

A decrease in Wisconsin’s unemployment rate has disqualified the state from an extra six weeks of unemployment benefits that was approved by Congress in November. Based on a three-month rolling average rate, Wisconsin’s unemployment fell just below the required 8.5 percent threshold in early January, said John Dipko, communications director for the Wisconsin Department of Workforce Development.

As a result, about 100,000 unemployed people in the state whose benefits have continued because of the November extension are at risk of having them discontinued earlier than expected, unless Congress acts to change the threshold.

The state sent letters to 8,000 benefit recipients this week warning them that their benefits are now due to expire within one to three weeks — six weeks earlier than the extension would have provided if Wisconsin’s unemployment rate had stayed higher.

Dipko said the department will continue to send out about 1,500 letters every week informing residents their benefits are running out, unless Congress lowers the qualification threshold. He said the state was “hopeful” Congress would act as early as next week, although he noted that progress might be hindered by the big snowstorm in Washington.

Chuck Grumley of Greenfield, whose unemployment benefits initially ran out in October, had qualified for additional benefits under the November extension. But he received a letter Wednesday informing him that those benefits would be exhausted by next week.

The letter advises recipients whose benefits are expiring to visit the Workforce Development Department Web site for additional resources, including online job search assistance and eligibility for state-funded support services.

“That’s a crock. It just says look for a job,” Grumley said. “That’s a big nothing, really.”

Congress passed legislation last fall expanding unemployment benefits by 14 weeks for those whose money would run out before the end of the year. States with an unemployment rate of 8.5 percent or higher would qualify for an additional six weeks, according to the law.

Based on December’s rate, Wisconsin’s long-term unemployed reportedly qualified for the additional six weeks.

Now, Wisconsin is in a “tier 3” group of states whose unemployment benefits are limited to 93 weeks. The six-week extension granted to states with higher unemployment would have brought that limit to 99.

If Congress does not authorize additional benefits for the state, letters will continue to be sent to warn benefits recipients as they approach the 93-week limit, likely tapering off in the spring and summer, Dipko said.

About 250,000 Wisconsin residents are collecting unemployment benefits, including the 100,000 who have been out of work long enough to have benefited from the November extension.