Sounds like the man is running a business, but also trying to ease you out fairly at the same time. I'm sure he's perfectly aware that if you quit, you'd lose the unemployment.
I'm sure that things will fall into place for you in your search for a job at your new location. I'd be puting feelers out soon......as you probably know, it's always easier and best to find a new job before you are unemployed. (Don't forget to get a written reference from your boss!)
MA