Connecticut's falling unemployment rate is having the unintended consequence of leaving many out of work with fewer unemployment benefits.
Unemployment dipped in March to 7.7 percent, the lowest in three years.
“The silver lining here is that jobs are being created in Connecticut. Our unemployment rate is at 7.7 percent, the lowest point it’s been in three years,” Gov. Dannel Malloy said. “But if you don’t have a job and are now facing the loss of benefits, you’re being put in an impossible situation. There are state resources available for both assistance and job training. We need to redouble our efforts to make sure that those resources are going to people who need them most.”
Currently, 26 weeks of state benefits and 47 weeks of emergency unemployment compensation are available to those eligible to apply for unemployment benefits. But because of the relatively low unemployment rate, Connecticut will no longer be eligible to provide seven of the 20 weeks of extended benefits.
The state Department of Labor estimates that by the end of the year, 75,000 people will be unemployed long-term and will have exhausted their benefits.
House Republican Leader Lawrence F. Cafero Jr. said on Tuesday that the unemployment rate dipped slightly only because more state residents continue to leave the job market.
“The state stops counting those who have exhausted their unemployment benefits. The unemployment rate has gone down over the past few months because fewer people are actually counted in the overall job market,’’ Cafero said.
By the end of 2012, about 17,500 unemployed people will no longer receive extended benefits.
State officials said they are developing a plan to help those whose unemployment benefits are cut short.
Malloy said he wants to see the plan in two weeks. Cafero said Republicans are also considering drafting legislation to change the way the Labor Department computes the unemployment figures to make the job market status clearer.
