COLUMBIA — South Carolina’s unemployment agency will lay off 100 employees in June as part of a statewide reorganization that directs anyone seeking jobless benefits to use its upgraded online system, the agency’s interim director announced.
John Finan said the Department of Employment and Workforce will eliminate one-on-one help with unemployment claims on June 10, and the number of local offices offering job training and other re-employment services will shrink. Exactly how many of those 56 offices remain open past June will depend on decisions made by the state’s 12 workforce investment boards, he said.
It comes two months after the ending of in-person unemployment help at 17 rural offices caused a backlash from legislators. Democrats particularly denounced the move as an attack on rural South Carolina, and the outrage culminated in the resignation of former Director Abraham Turner.
Finan said even that cut, as well as hiring and travel freezes, weren’t enough to offset the loss of federal money, which funds the agency’s operations. DEW’s declining workload — processing 50,000 claims filed weekly compared to nearly 140,000 in early 2011 — required a statewide restructuring that brings South Carolina in line with how most states already handle claims, he said.
“We were way out of touch with other states in the country. We’re coming up to modern times with technology,” Finan said. He insists that the continued downsizing creates an opportunity to shift the agency’s focus.
“We’re trying to refocus from unemployment, which has been the mantra for the office, to re-employment,” Finan said. “We need to work on innovative things the state can do and locals can do to really put people to work.”
Affected workers will receive notices this week. The vast majority of layoffs will come from local offices.
But they won’t end there.
Automatic federal spending cuts call for the phasing out of an additional 29 weeks of federally paid unemployment benefits. By year’s end, laid off workers will be eligible only for the maximum of 20 weeks of benefits allowed under state law. When that program’s gone, the agency can’t continue to pay the workers who ran it, Finan said.
The combined cuts would bring the agency’s workforce to about 850.
That doesn’t include an unknown number of layoffs locally.
The state’s 12 local workforce investment boards get money directly from the federal government to supply re-employment services, such as career counseling, workshops, skills testing, job referrals and help writing resumes. And those boards, which run the local offices and share the cost with the agency, also will get less money.