North Carolina's Employment Security Commission may have to borrow from the federal government as early as next week to keep paying jobless benefits.
Deputy commission chairman David Clegg said the unemployment insurance fund had dropped to little more than $16 million Monday because more people can't find jobs. The state paid $160 million in
unemployment benefits in December.
The News & Observer of Raleigh reported the state has nearly 400,000 unemployed workers. The jobless rate was 8.7 percent in December, the highest since 1983.
Clegg says not only are more people without jobs, but it's taking them longer to find work.
North Carolina has a $540 million credit line with the federal government. The state would have until October to repay the money without paying interest.
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