WRAL Examines N.C. Unemployment Benefit Cuts

Imagine losing your job, then losing the unemployment check you depend on to pay your bills. That’s what happened to about 70,000 unemployed workers in our state on July 1, because of a new state law overhauling North Carolina’s unemployment insurance system. A new WRAL Raleigh, N.C., documentary Cut Loose and Cut Off profiles some of those people and looks at the debate over the controversial new law. The documentary, hosted by WRAL anchor Bill Leslie, airs Thursday, Sept. 12, at 7 p.m.

During the Great Recession, North Carolina ran out of money to pay unemployment benefits for laid off workers. The state borrowed money from the federal government to pay the benefits and soon racked up a $2.5 billion debt. The debt is increasing unemployment taxes on employers.

In an effort to remedy the problem, Republican legislators crafted a bill to pay the debt off sooner. The bill cut state unemployment benefits, which violates federal law. As a result, the US Department of Labor terminated its agreement with the state to fund extended benefits that kick in for unemployed workers when state benefits run out.

Cut Loose and Cut Off examines the legislation and its impact through interviews with people who lost their benefits, policymakers, experts and advocates.