Mass. unemployment benefits to vanish for 6,500

Boston Business Journal - by Kyle Alspach June 20, 2011

Massachusetts residents who've been unemployed longer than 86 weeks
will no longer be eligible for jobless benefits starting July 9, as a
result of the state’s falling unemployment rate.

The change will lead to the loss of benefits for 6,500 unemployed
residents as of that date, according to the state workforce office.
Another 13,500 residents are within 13 weeks of the cutoff — meaning
that more residents could be impacted soon if they’re unable to find
jobs.

Currently, residents can receive 93 weeks of unemployment benefits in
total, which includes both state and federal unemployment benefits.

But because the state’s three-month unemployment average has fallen
below 8 percent, the federal “extended benefits” portion has been
reduced by seven weeks, the state workforce office said Monday. The
office said last Thursday that the state unemployment rate has fallen to 7.6 percent, bringing the state’s three-month average to 7.8 percent.

Unemployment benefits in Massachusetts currently include 26 weeks of
state benefits, 47 weeks of federal emergency unemployment compensation
benefits, and an additional 20 weeks of extended benefits, said state
unemployment division director Judith Cicatiello. The extended benefits portion is dropping to 13 weeks from 20 weeks, starting July 9.

A total of 185,000 Massachusetts residents are currently collecting
weekly unemployment benefits. Cicatiello said her office is looking to
determine how the benefits would be impacted by further drops in the
unemployment rate.

However, Monday's news wasn't all bad for unemployed Massachusetts
residents. For those who have mortgages, but no jobs, the federal Emergency Homeowners' Relief Fund on Monday began distributing $61 million in $50,000, zero-interest, forgivable loans.