Mich unemployment agency lays off 400

GRAND RAPIDS, Mich. (WOOD) - The Michigan Unemployment Insurance Agency is laying off around a third of its staff because there are not enough statewide claims to qualify for additional federal funding.

The last day for 177 part-time workers was Aug. 31 and the last day for an additional 225 more will be Sept. 28. Chawn Greene Farmer, a spokesperson for the Unemployment Insurance Agency, said the affected employees received about a month's advance notice.

After the cuts are complete, the UIA will have about 800 people on staff statewide.

24 Hour News 8 went to one of the agency's 14 problem resolution offices Wednesday afternoon and spoke to a client who says she has already seen a drop off in service.

"I seen maybe four workers and at least 30 people waiting," said Andrea Thomas, who visits the UIA office weekly becuase she's attending classes.

She said the number of staff has clearly dropped, and the wait time has gone up significantly.

"It's hard because I knew it was going to be a longer wait -- it always is. And yesterday I came in and it was a four-hour wait and this is my second time returning," she said.

Thomas said she has known the layoffs were in the works since last week when the man helping her at the UIA office told her he would soon be line beside her.

'The last time I visited, a man told me he was getting laid off and he didn't have any reason why," Thomas said.

The agency said the reason for the layoffs is because fewer people are filing unemployment claims.

In June 2009, 537,000 Michigan residents filed for unemployment benefits, which meant that Michigan was eligible for specific federal funds. Some of the money was one-time-only funding used for "deal[ing] with the high claim volume and the delivery of federal programs, which are being phased out."

Last month, 167,000 people filed for unemployment. The decrease means less money from the federal government -- and less money for those jobs.

Thomas said she's probably going to do what the UIA hopes a lot of people do now.

"I probably will try to do it online rather than just coming in," said Thomas.

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Online:

The Michigan Unemployment Insurance Agency