Unemployment Benefits

This article lists all the benefits that can be claimed by workers who have lost jobs. ©FEMP9

Common perception is that unemployment benefits are temporary cost of living adjustments. Financial assistance is just one part of unemployment insurance benefits. There are several other benefits such as career coaching, job search assistance, extension of unemployment benefits beyond standard 26 weeks etc. Before you learn more about unemployment benefits, check unemployment eligibility article to make sure you are qualified to receive unemployment benefits. In a nutshell, only those who are involuntary unemployed, willing and able to work and have earned enough wages in the past 4-6 quarters will be qualified to receive unemployment insurance benefits.

Unemployment Benefits – The Dollar Amount

The common question many people have is about the amount they get paid when they are unemployed. It depends on the state where you have worked and earned wages.

• Unemployment benefits amount range from 200 to 800 dollars per week depending on the state unemployment agency and your employment history. The average payout is around $300 per week, per person nationwide.
• On average, insurance benefits generally cover about 40% of workers’ previous earnings, while the range of coverage varies between between 30 to 50% depending on eligibility criteria.
• Unemployment benefits are subject to federal income taxes, so you are expected to pay taxes on these earnings

What determines unemployment benefits amount?

photo credit: pfala

There are various factors involved in determining the dollar amount you receive. These are the important factors that determine the money you earn as replacement wages.

1. State Unemployment laws – some states pay more and some less. For example, Massachusetts pays about 600 dollars while Arizona pays about of 200 dollars on average.
2. Previous Earnings – if you have earned more than the average wages of all state workers, then you are likely to receive more in unemployment insurance benefits. This is because, your employer will have paid more payroll taxes to fund the unemployment insurance programs

How long do I receive Unemployment Benefits?

Most states pay unemployment benefits for an initial period of 26 weeks, but some states have more flexible rules. For example, Washington and Massachusetts pay up to 30 weeks. Congress can extend the benefits duration during economic downturns. In November 2008, Congress passed a bill to extend unemployment benefits by 13 weeks in addition to 26 weeks, in states where unemployment level is more than 6 percent. On average, about 35 percent of workers qualify for less than the full 26 weeks, because of uneven earnings or a brief work history.

The following factors determine the number of weeks of benefits an applicant can potentially receive
Past earnings levels: higher wage earnings will make you eligible to receive benefits longer
Employment history: Whether there were earnings in each quarter of the base period which is generally the first four of the last five completed calendar quarters before you filed your claim; whether earnings were evenly distributed among 4 quarters in the base year.

Unemployment Insurance – Other benefits

The purpose of unemployment insurance program is not only to provide temporary living assistance, but also to ensure job market is stable and sustainable. For this reason, most of the the State Unemployment Insurance programs offer several benefits other than the financial assistance.

Job Search Assistance
States Unemployment agencies help you find a suitable job by providing job aid tools. Such tools will help you seek job openings, build resume, research prevailing wage info. etc. Additionally, you can obtain industry and occupational trends, and identify career opportunities in new fields

Career Coaching
Many states offer career coaching services. Workshops and training sessions will be available for workers who have lost jobs so they can improve their current skills or learn new ones. Constantly expanding the skills will help you increase the chances of finding new jobs and and possibly achieve success throughout your career. Please be aware that not all programs are offered free, but nevertheless states will have negotiated fees with training institutions for you. contact state unemployment offices to inquire about the expenses and make the best use of these programs.

Note: If you are looking to apply for unemployment benefits, please refer to the guides on the side menu

Related posts:

1. Unemployment Benefits Eligibility
2. Unemployment Benefits Comparison by State