Unemployment Benefit Level

Definition

Average weekly benefit as a percentage of the state’s average weekly wage, Quarter 3, 2011 – Quarter 2, 2012.

Description

Unemployment insurance benefits support workers and their families who have no steady income due to a job loss. In the event of a job loss, families are often forced to liquidate their assets or take out loans to make ends meet. Unemployment benefits help those families preserve existing assets and prevent debt accumulation.

Although unemployment insurance is based on federal law, states set benefit levels, duration, eligibility, etc. This measure compares benefit levels to the average wages in a state. There is broad consensus that unemployment insurance benefits should replace 50% of lost weekly earnings over a 6-month period. However, benefits in many states are far below that level.

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Unemployment Benefit Level

Source

Unemployment Insurance Data Summary. Washington, DC: U.S. Department of Labor, Employment and Training Administration, 2012.