Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Michigan cuts jobless benefits by 6 weeks

rick_snyder.top.jpgMichigan Gov. Rick Snyder has signed legislation that cuts extended jobless benefits by 6 weeks. By CNNMoney staff


NEW YORK (CNNMoney) -- Michigan has reduced unemployment benefits, with Gov. Rick Snyder signing into law a bill cutting the payouts by six weeks.

Snyder signed the bill late Monday, cutting extended benefits to workers to 20 weeks from 26 weeks.

A growing number of states are looking to cut back on jobless benefits to minimize the increase in unemployment taxes businesses pay . State officials are concerned that these tax hikes could deter companies from hiring.

The tab businesses will pay is likely to grow. The surge in unemployment over the past three years has forced many states to wipe out their own funds for benefits and borrow from a federal pool. Some 32 states owe $45.7 billion to the federal fund.

Snyder, in a statement announcing the signing, said the law was necessary to maintain benefits for about 35,000 Michigan workers. He said that, as of April 1, Michigan would have no longer qualified under federal programs allowing states with high unemployment to pay extended benefits.

"These benefits are a lifeline for many Michigan families who are struggling in this challenging economy," Snyder said. "Cutting them off so abruptly would have jeopardized the well-being of those who are trying hard to find work.

--CNNMoney senior writer Tami Luhby contributed to this report. To top of page

Index Last Change % Change
Dow 23,000.16 43.20 0.19%
Nasdaq 6,625.92 1.91 0.03%
S&P 500 2,558.09 0.45 0.02%
Treasuries 2.31 0.00 0.00%
Data as of 11:08am ET
Company Price Change % Change
Bank of America Corp... 26.30 0.06 0.23%
Ford Motor Co 12.26 0.14 1.16%
Netflix Inc 200.58 -2.10 -1.04%
Micron Technology In... 40.92 -0.57 -1.38%
General Electric Co 23.06 -0.30 -1.28%
Data as of 10:54am ET
Sponsors

Sections

More than 5% of DACA recipients have started their own businesses since enrolling the program, according to a recent survey. More

President Trump's decision to stop funding a key set of Obamacare subsidies is prompting states and insurers to hike health insurance premiums. More

The new flagship Pixel 2 and Pixel 2 XL phones from Google run the best version of Android and throw in some neat tricks. More