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Federally-funded Unemployment Benefits Reduced in Michigan

Updated : November 2nd, 2022

The state of Michigan’s federally funded unemployment benefits have decreased due to the decreased unemployment rate. It is truly a great development for the state economy .

As per the report of Michigan Department of Technology, Management and Budget Employment rate has widely increased over 9.3 percent since December 2011, which is almost 2 percent drop down, while compared to January 2011. As the statistical report states that the story as 2011 saw the year-end with a surplus of $457 million dollars, which has not happened in a decade.

It is also a notable improvement as more than 4.2 million Michiganders were employed in January, while about 417,000 were listed as unemployed. 80,000 private sector jobs were created. Private manufacturing companies are also provided with the biggest enhancement, adding most of the payroll jobs over the month.

It is a notable growth that Michigan’s was less than one percentage point above the national jobless rate of 8.3 percent in January. The stats do not take into consideration the people who have given up looking for work. If the underemployed workers are taken into account, Michigan State’s unemployment rate would slightly increase to about 11.1 percent instead of 10.3 percent which is still a good development. This 11.1 percentage of people may also be included as those who work as part-time but want full-time work, along with those who have worked at some point during the past year but aren’t currently looking for work.

The number of people applying for unemployment benefits in Michigan fell down for the first time in past five weeks. But the drop suggests only modest job growth after three months of weak hiring. Michigan’ unemployment rate continues to decline, dropping below 9 percent in February for the first time since 2008. But the situation was still grimmer in last months of 2011.

As per the forecast report “If the unemployment rate forecasts for the U.S. and Michigan hold, 2014 “would be the first time since … 2000 that the Michigan unemployment rate would be lower than the U.S.,” The House of Fiscal Agency states that the Michigan’s unemployment rate will drop to 7.4% below the national average by or within 2014.

Reduced rate of unemployment claim in Michigan in this year have made the unemployment insurance agency to change the benefit entitlements for EUC program. The US department of labor has recently updated that the Tier 4 of the Emergency Unemployment Compensation program will be closed in the state of Michigan, as the Michigan’s unemployment rate has flawlessly decreased. Michigan’s jobless numbers are below the level required by federal law to continue Tier 4 of the program.

If the claimants have applied for the UI benefit before June 23, 2012 then they will be eligible to claim the benefit if Tier 3 and can establish a Tier 4 as claim. But after the date claimants cannot expect this benefit, however under new provisions, claimants can still be eligible to receive the remaining entitled benefit. As the remaining entitlement they have in Tier 4 until it is exhausted through payment for week ending December 29, 2012, provided they are otherwise eligible. Also remember that those who exhaust their Tier 3 EUC benefits after week ending June 23, 2012, will be unable to collect any Tier 4 benefits.

For additional information regarding changes to the EUC program, claimants may directly contact the UIA on the -866-500-0017, from 8:00 a.m. to 4:30 p.m Monday through Friday or visit the UIA website at

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