“Unemployment insurance programs insure workers against the risk of lost income if they lose their job through no fault of their own. In the U.S., the program is run at the state level. Each state sets its benefit level and eligibility criteria, and finances these benefits through payroll taxes.2 ” write David L. Fuller, B. Ravikumar and Yuzhe Zhang in Unemployment Insurance: Payments, Overpayments and Unclaimed Benefits.
Typically, the unemployment benefits last for a maximum of 26 weeks. These regular unemployment benefits paid by the states increased sharply during the recent recession. Measured in 2005 dollars, these benefits more than doubled, from $31 billion in 2007 to almost $72 billion in 2009. Since 2009, these regular benefits have decreased to levels below what they were after the previous recession: In 2011, the unemployment insurance program spent less than $42 billion on regular benefits, while the corresponding figure in 2002 was more than $46 billion.3
In periods of high unemployment, benefits may be continued for additional weeks beyond the regular cap of 26. Most states offer an additional 13 weeks of benefits when the unemployment rate in that state remains above a certain threshold. The federal government may also finance more benefits. For example, the federal government recently provided financing to some states to extend their benefits to a maximum of 99 weeks. During the early 1990s, the extended benefits added 60 percent to the regular benefits. During the past two years, the extended benefits have added more than 125 percent.
Choosen excerpts by Job Market Monitor from
By the time Congress got around to passing an extension of emergency jobless benefits last week, Clyde Lance no longer needed them. On Dec. 17, his 52nd birthday, Lance started a full-time job helping train technicians for the International Society of Automation in Research Triangle Park, North Carolina, ending a three-year search for a permanent … Continue reading »
Among the many spending cuts and tax increases legislated to take effect at the turn of the year, few policies have as direct an effect on those most affected by the Great Recession than the expiration of extended unemployment insurance (UI) benefits. In the first week of January, roughly two million individuals will lose extended … Continue reading »
Unemployment Insurance / Reduces labor force exit among the unemployed rather than changes reemployment rates
A paper by Jesse Rothstein, a professor of public policy and economics from the University of California Berkeley has made making a lot of noice on the Web. Jesse Rothstein who is also former chief economist at the Department of Labor, provides up-to-date estimates of the ‘generousity’ effect of unemployment insurance benefits (in terms of duration, % of wages replaced, or … Continue reading »
In addition to the tax increases and broad federal spending cuts (known as “sequestration”) scheduled to take effect at the end of this year, the emergency unemployment benefits system is also expected to come to an end. It doesn’t get as much attention as the defense cuts or the tax increases, but the end of … Continue reading »
US – Unemployment Insurance – 711 000 Households with Income of $100,000 or more had received benefits
The report Receipt of Unemployment Insurance by Higher-Income Unemployed Workers (“Millionaires”) by Donald Hirasuna from Congressional Research Service provides information relevant to proposals that would restrict the payment of unemployment benefits to individuals with high incomes. (Adapted excerpts by Job Market Monitor) Summary The economic recession that began in December 2007 officially ended in June 2009 when the U.S. economy reached a … Continue reading »
Cutbacks in Unemployment Insurance Ccme long before the Great Recession. Unemployed American are less and less insured. Statistics on insured unemployment in the United States are collected as a by-product of UI programs. Workers who lose their jobs and are covered by these programs typically file claims (“initial claims”) that serve as notice that they … Continue reading »
“Over the last two decades, high – and, in some countries, rising – rates of low-wage work have emerged as a major political concern” writes John Schmitt in Low-wage Lessons (Choosen excerpts by Job Market Monitor to follow) According to the Organization for Economic Cooperation and Development (OECD), in 2009, about one-fourth of U.S. workers were in low-wage … Continue reading »