A sustained drop in Mississippi’s jobless rate has led the state to cut off emergency unemployment compensation to some unemployed workers who had previously qualified for the benefits.
The reason: Mississippi’s seasonally adjusted unemployment rate has fallen below the 9 percent level for a three-month period, triggering off Tier 4 Emergency Unemployment Compensation (EUC) benefits.
Triggers for each tier of EUC benefits are pre-determined by the legislation that established the program.
Emergency Unemployment Compensation is provided in four tiers as a claimant exhausts his regular compensation benefits. Tier 1 is available in all states to claimants who exhaust their regular unemployment benefits. Eligibility for the other tiers is based on a state’s 3-month Total Unemployment Rate (TUR).
Tier 2 triggers on when a state’s 3-month TUR is at least 6 percent.
Tier 3 triggers on when a state’s 3-month TUR is at least 7 percent.
Tier 4 triggers on when a state’s 3-monht TUR is at least 9 percent.
Anytime a state’s 3-month TUR falls below one of the thresholds, that tier triggers off as is the case for Tier 4 for Mississippi.
As a result of the change, claimants who did not establish Tier 4 eligibility on or before Jan. 13 will no longer establish Tier 4 eligibility. Claimants already eligible for Tier 4 EUC on or before Jan. 13 will receive the balance of their Tier 4 benefits.