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Media contact: Sheryl Hutchison, communications director, 360-902-9289

OLYMPIA – Unemployed workers in Washington state are learning this week that their extended unemployment benefits will begin phasing out soon.

Currently, there are two federal programs operating in the state that pay additional weeks of unemployment benefits after eligible workers run out of their “regular” unemployment benefits: the “emergency unemployment compensation” program and the “extended benefits” program.  The state Employment Security Department is informing participants by mail that both programs will begin shutting down over the next month.  

“Employment Security is on the frontlines helping the unemployed, so we know how hard the loss of these benefits will be for thousands of families who rely on them,” said Paul Trause, the state’s employment security commissioner.  “It’s particularly difficult to shut off benefits in the middle of winter, when there are fewer jobs available than in the summer.” 

The first program, emergency unemployment compensation (EUC), has been available since July 2008 and will begin phasing out at the end of December. EUC pays up to 53 weeks of benefits, in four tiers, after an individual has run out of “regular” benefits. 

There are two dates that will affect whether existing claimants will continue to receive EUC benefits after the end of the year:

• Individuals who run out of “regular” unemployment benefits no later than Dec. 24 may be eligible to advance to EUC tier 1 (which pays up to 20 weeks of benefits) if they apply before the end of December.  
• Anyone who establishes an EUC claim (in tiers 1, 2 or 3) by Dec. 31 may finish his or her existing tier, but will not be able to advance to the next tier after this date.  For example: an individual who is in week 10 of tier 1 at the end of December may claim up to 10 additional weeks of benefits, depending on the total amount of his or her benefit; however, the claimant will not be able to advance to EUC tier 2.

A second program, called “extended benefits,” will likely end in mid- to late January in this state. The program pays up to 20 weeks of benefits to individuals who have run out of both regular and EUC benefits. 

States can qualify for extended benefits based on a formula that is based mostly on their three-month average unemployment rate, which must be at least 2 percentage points higher than the same period in a previous year. 

Under a temporary law, the state was allowed to compare the current average to the average three years ago, when there was a much lower average unemployment rate.  But the two-year look-back will be reinstated at the first of the year, and the difference will narrow to less than 2 percentage points. 

Employment Security officials expect the change will cause the state to trigger off of extended benefits.  Official word is expected from the federal Department of Labor by early January, and benefit payouts must end two weeks after that.

Currently, about 85,000 people are claiming EUC or extended benefits in Washington state. Another 108,000 are claiming regular unemployment benefits.

Congress is considering proposals to continue both the EUC and extended-benefits programs. If a bill passes, Employment Security will automatically notify all eligible individuals by mail.

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Links

• Employment Security: www.esd.wa.gov
• WorkSource employment system: www.worksource.com  

Broadcast version

Long-term unemployed workers are receiving word this week that their unemployment benefits will begin phasing out soon.

The Employment Security Department is sending letters to people who are receiving benefits through one of the two federal benefit-extension programs.

After December 24th, no one will be admitted to the “emergency unemployment compensation” program. And after December 31st, existing recipients will not be able to advance beyond their current tier of benefits.

A second program, called “extended benefits,” also is likely to end around mid-January. 

State officials say that if Congress votes to continue these benefits programs, they will automatically notify all eligible individuals by mail.