NOVEMBER 25, 2008 – The 63,000 unemployed Michigan workers, who have exhausted their federally-funded unemployment benefits from this summer, should receive letters with instructions for obtaining the newly approved federal benefit extension within the next two to three weeks.

Stephen Geskey, director of Michigan's Unemployment Insurance Agency (UIA), expects the agency will mail letters to eligible unemployed workers by the week of December 12.  The letters will explain how the unemployed workers can claim the added federal Emergency Unemployment Compensation (EUC) benefits.  In the meantime, he urged jobless workers to refrain from calling the agency to inquire about their eligibility for the new EUC benefits, as all potentially eligible unemployed workers will be notified by mail.

Governor Jennifer Granholm welcomed the added federal unemployment benefits and said they would be a great help, especially at this time of year, to the many Michigan workers and their families who are trying to cope economically during this difficult period in the state.

"We fully anticipate that we'll begin making payments through the new EUC extension before Christmas," Geskey said.

The new federal extension, which was signed into law by the President on November 21, provides that those who have either exhausted their EUC or are currently receiving EUC may collect:

• Up to another seven weeks of federally-funded benefits through the original EUC program for a maximum total of 20 weeks (increased from a 13-week maximum).  This extension applies to all states.
  
  
• Plus up to an additional 13 weeks of federally-funded EUC benefits in high-unemployment states, such as Michigan, with unemployment rates above 6 percent.  Michigan's October jobless rate was 9.3 percent.

For those currently receiving regular state unemployment benefits, they may receive:

• Up to 20 weeks of federally-funded benefits through the original EUC program after they exhaust their regular state benefits.  And then up to 13 additional weeks of federally-funded benefits through the EUC extension, when they exhaust their original EUC and cannot establish a new regular state claim.

The extension is available for individuals who exhaust their unemployment benefits by March 31, 2009, and all EUC payments will end by August 29, 2009.

Geskey explained that UIA is moving quickly to make the added federal benefits available to long-term jobless Michigan workers as soon as possible.  He pointed out that this week – the week of November 23-29 – will be the first week of unemployment for which the newly added EUC will be payable.  The program, however, does not allow for any "reach back" to cover earlier weeks of unemployment.

Another 56,000 unemployed workers are currently receiving federally-funded benefits through the original EUC program, and most of these workers should move into the new extension without any delays as they exhaust their existing benefits.

Geskey pointed out that the EUC program and its extension are fully federally-funded.  Therefore, employers will not be charged for EUC benefits paid to their former employees.

Additional information about the EUC is available on the UIA website at www.michigan.gov/uia.

Read more Michigan Department of Labor & Economic Growth press releases.