Michigan first to act as states weigh reductions in unemployment benefits

The Washington Post reports:

Michigan moved Thursday to significantly cut its unemployment program, becoming the first of what could be a flurry of debt-laden states to reduce aid even as high jobless rates persist.

The Michigan measure reduces the maximum period a person can receive state unemployment benefits from 26 to 20 weeks, the lowest in the nation, officials said. Gov. Rick Snyder (R) indicated Thursday that he would sign the bill.

The state’s economic troubles, aggravated by the recession and its shrinking manufacturing base, have turned Michigan into a bellwether of bust. Its unemployment rate stands at 10.7 percent — one of the worst in the country.

The move comes as other Republican-dominated legislatures, including in Florida and Arkansas, are weighing similar efforts to restrict payments to the jobless, and states such as Wisconsin, Ohio and Indiana are implementing far-reaching, controversial plans to close budget gaps.

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