The unemployment situation in Colorado has improved. But that means times are about to get tougher for thousands who have been without work for many months.
The Colorado Department of Labor and Employment is sending out letters to more than 6,000 people to notify them that effective May 12, they face the loss of unemployment benefits. The duration of benefits will fall to 73 weeks, down from a peak of 99 weeks.
“We will be sending notifications to all potentially impacted claimants,” said department spokeswoman Cher Haavind.
Those affected are covered under what is known as Tier 1 of the state extended-benefits program, which ended when Colorado’s unemployment rate in the first quarter fell below 110 percent of the rate seen in the same period three years earlier.
Colorado’s unemployment rate has run at 7.8 percent during the first three months this year, about 108 percent of the total three years ago.
In April, there were about 88,241 Coloradans receiving unemployment-benefit payments, down from 148,101 people claiming benefits in February 2010, during the depths of the employment downturn.
Those losing eligibility under the state extended program represent about 6.8 percent of the total receiving unemployment benefits in Colorado.
At one point, the long-term unemployed in Colorado could collect up to 99 weeks of benefits under state and federal programs, earning them the nickname “the 99ers.”
But in November, Colorado lost eligibility for Tier 4 of the federal Emergency Unemployment Compensation program, which kicked in when a state had an unemployment rate of 8.5 percent or higher.
The duration of benefits fell to 93 weeks, then in early April dropped to 86 weeks when Tier 2 of the state extended program ended, affecting 11,000 people who were eligible.
The maximum available after May 12 will be 73 weeks. And come September, changes in the federal program will cut another 10 weeks off, bringing the maximum down to 63 weeks.
If the state’s unemployment rate falls below 7 percent for three months, another nine weeks will come off the maximum, bringing the maximum to 54 weeks.
Aldo Svaldi: 303-954-1410, asvaldi@denverpost.com or
Collapsing tiers
Unemployment benefits in Colorado have fallen from a peak of 99 weeks to 86 weeks. On May 12, they will fall to 73 weeks, with about 6,000 people cut off. An additional 10 weeks will be shaved off in September.
CategoryDurationStatusState Basic Benefits26 weeksActiveFederal EUC* Tier 120 weeksActiveFederal EUC Tier 214 weeksActive at 6% unemployment rateFederal EUC Tier 313 weeksActive at 7% unemployment rateFederal EUC Tier 46 weeksActive at 8.5% unemployment rate, ended Nov. 12, 2011State Extended Benefits Tier 113 weeksEnds May 12State Extended Benefits Tier 27 weeksEnded April 7
*Emergency Unemployment Compensation
Tier 2 and Tier 3 unemployment rate triggers are effective June 2012
Source: Colorado Department of Labor and Employment
