Politics & Government

Federal employees out of work in NC could get unemployment, but there’s a catch

North Carolina unemployment benefits could be paid to federal employees impacted by the shutdown. The state is also hiring.
North Carolina unemployment benefits could be paid to federal employees impacted by the shutdown. The state is also hiring. Getty/TNS
Key Takeaways
Key Takeaways

AI-generated summary reviewed by our newsroom.

Read our AI Policy.


  • Federal employees can apply for NC unemployment but must repay if backpay arrives.
  • Applicants must create MyNCUIBenefits and submit SF-50, SF-8, affidavit and wage records.
  • DES hotline and portal guide claims; nc.gov/join-north-carolina lists state openings.

Can federal employees impacted by the government shutdown get unemployment benefits in North Carolina?

Yes, but there’s a but.

“Anyone can apply for unemployment benefits if they have lost their jobs through no fault of their own,” said M. Antwon Keith, assistant secretary of the N.C. Division of Employment Security.

“These benefits exist to help people cope with financial uncertainty until they find work,” Keith said in a news release.

But there’s more to it.

“Federal employees who choose to take unemployment benefits during the shutdown may have to repay benefits if they receive backpay from their agency,” he said.

North Carolina has about 83,000 federal employees, The News & Observer previously reported. Some are furloughed and out of work, while others are required to work even though they aren’t receiving pay. Both groups are expected to receive back pay once the shutdown is over.

Beyond shutdown-related furloughs, Republican President Donald Trump has threatened mass layoffs.

Here’s what you need to know about unemployment payments for federal workers.

What happens if you are furloughed and apply for unemployment

If you apply and receive unemployment benefits when you are furloughed from the federal government, and you receive back pay when the federal government reopens, you will have to pay that unemployment money back.

How federal employees qualify for unemployment benefits

To qualify for benefits due to the federal shutdown, you must have been employed by the federal government and because of a separation are now unemployed. Eligibility is also determined by your last duty station as a federal employee.

What you need to have if you lose your job because of the federal shutdown

To access unemployment benefits, you’ll need to make a MyNCUIBenefits account on the N.C. Department of Commerce Division of Employment Security website.

Information to gather includes:

  • Information from all your employers over the past year and a half, including names, addresses, tax forms and paycheck stubs.
  • Your Social Security number or your Alien Registration number.
  • DES recommends these forms, too: Standard Form (SF)-50 Notification of Personnel Action and SF-8 Notice to Federal Employee About Unemployment Benefits.
  • If you are a federal worker with an ID.me account, that information can also be shared to verify your identity if needed.
  • You’ll also need to submit an Affidavit of Federal Civilian Service, Wages and Reason of Separation with details about your service for the federal government and reason for the separation.
  • Information about a severance package, which will help determine the amount of your unemployment payments.
The U.S. Capitol on Wednesday, July 16, 2025.
The U.S. Capitol on Wednesday, July 16, 2025. Danielle Battaglia dbattaglia@mcclatchydc.com

How to get state help filling out application

More detailed information about applying can be found on the Division of Employment Security website, des.nc.gov. You may also call a hotline for federal workers that is open 8 a.m. to 5 p.m. weekdays at 855-435-7969.

What to do if your job is as a contractor, or ending because a federal grant is ending

If you are losing your job because your federal grant or contract is ending, you can apply for regular unemployment online.

How to apply for a NC government job if you leave the federal government

North Carolina’s state government is hiring, and looking to recruit former federal employees. You can see current job listings and other information about working for the state at nc.gov/join-north-carolina.

That website was launched in March by Democratic Gov. Josh Stein’s administration after many federal employees lost their jobs due to Trump and his former billionaire adviser, Elon Musk, severely cutting government agencies.

North Carolina state government has about a 20% vacancy rate statewide, with many of those jobs needed in the departments of Health and Human Services and Adult Correction.

News & Observer politics podcast Under the Dome spoke with Office of State Human Resources Director Staci Meyer in July about how North Carolina has been working to streamline recruiting new state employees.

Dawn Baumgartner Vaughan
The News & Observer
Dawn Baumgartner Vaughan is the Capitol Bureau Chief for The News & Observer, leading coverage of the legislative and executive branches in North Carolina with a focus on the governor, General Assembly leadership and state budget. She has received the McClatchy President’s Award, N.C. Open Government Coalition Sunshine Award and several North Carolina Press Association awards, including for politics and investigative reporting.
Get unlimited digital access
#ReadLocal

Try 1 month for $1

CLAIM OFFER