Unemployment benefits cut in Maine

Unemployment benefits cut in Maine because of federal budget cuts, improving jobless rate

AUGUSTA, Maine (AP) -- Unemployment compensation is being cut in Maine because of the federal government's automatic budget cuts as well as Maine's improving economy.

The Department of Labor says unemployment beneficiaries in the final weeks of their eligibility had their benefits end eight weeks early last month because of the series of automatic spending cuts known as "sequestration."

Beginning July 14, additional unemployment benefits will end for jobless people once they've received 46 weeks of compensation, rather than the current 52 weeks. That's because the state's three-month average unemployment rate has dropped below 7 percent.

About 15,000 people in Maine are now collecting unemployment benefits.