I would have to drive that every day, They said If I dOn"t take the job I would not get unemployment> Can they do this?
Likely yes. If you are offered another position and you refuse, you can be denied unemployment. This all depends on whether your refusal of the new position is "reasonable." A one hour drive is not something that is completely uncommon for people to deal with. The best advice I can give in this job market is to take the job and either move, get a more fuel efficient vehicle, or look for a new job.
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