What Is Unemployment?
Unemployment — also called Unemployment Insurance, UI
Unemployment Insurance (UI) is temporary financial help for workers who lost their job through no fault of their own, like a layoff or company closure. It replaces part of your lost income while you search for a new job. Payments usually come weekly or biweekly from your state, and the amount depends on your past earnings.
Official source: dol.gov
Who qualifies
You generally need a sufficient work history and earnings during your "base period," must have lost your job through no fault of your own (layoffs, company closures), and must be actively searching for and able to accept new work. Quitting voluntarily, being fired for misconduct, or working as an independent contractor usually disqualifies you.
How much you can get
Your weekly benefit is typically a percentage of your past earnings. Amounts vary widely by state, from as little as $5-$10 a week in some states to $700-$1,200 in others, with most states averaging $300-$450 per week.
How to apply
Apply online through your state's unemployment website (some states also allow phone applications). You'll need your employment history, W-2s, pay stubs, and details about your last employer.
How long it lasts
Most states pay benefits for up to 26 weeks. Extended benefits may be available during periods of high unemployment.
Taxes and other benefits
UI payments are taxable income and must be reported on your federal (and often state) tax return. Because UI counts as income, it can also affect SSI, SNAP, Medicaid/CHIP, and housing assistance eligibility.
In real life
- A worker laid off during a company restructuring files a UI claim and receives weekly payments while job hunting.
- Someone fired for misconduct applies for UI but is denied because the job loss wasn't through no fault of their own.
- A claimant's SNAP benefits shrink slightly because their UI payments count as income.
Also known as
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Frequently asked questions about Unemployment
What is Unemployment Insurance?+
Temporary financial assistance for workers who lost their job through no fault of their own, such as a layoff or closure. It helps cover living expenses while you search for new work. You generally need enough earnings during your base period and must be actively job-seeking.
Who qualifies for Unemployment Insurance?+
Workers who lost their job through no fault of their own, have sufficient work history and earnings in their base period, and are actively seeking and able to accept new work. Those who quit voluntarily, were fired for misconduct, or are independent contractors typically don't qualify.
How do I apply for Unemployment Insurance?+
Apply online through your state's unemployment website (some states also offer phone applications). You'll need your employment history, W-2s, and pay stubs. There's no cost to apply.
Where can I get help?+
Use BenefitKarma's free Benefit Eligibility Screener to see what else you may qualify for, then apply through your state's unemployment office website.
Source: dol.gov