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Thursday, December 17, 2009 - 2:10pm

State Seeks Unemployment Bailout

Updated: 4 years ago.
Ga. Labor Commissioner Michael Thurmond said "Georgia’s job market is mired in a prolonged and painful economic downturn." (photo courtesy of Ga. Department of Labor)

Rising unemployment claims has forced Georgia to seek money from the federal government.

On Thursday, State Labor Commissioner Michael Thurmound announced the state will get a loan to pay out those claims.

“This is the first time that Georgia will have to have accessed federal funds to assist in the payment of unemployment insurance benefits. This is further evidence of the crisis that we are in and the huge job losses that have been experienced here in our state," says Thurmond.

The number of Georgians receiving unemployment insurance has risen 11.5 percent this year.

Last December, Georgia had almost a billion dollars to pay unemployment claims. Now after a year of double digit unemployment in the state, Georgia is down to 25 million to pay out claims, according to State Labor Commissioner Michael Thurmond.

Thurmond says he expects to borrow around 70 million dollars from the federal government. If the state does not pay back the money by December 2010, it will have to start paying interest on the loan.

Twenty-four other states around the country are also set to receive a loan from the federal government to help cover unemployment insurance claims.