Eligibility and amount

Persons out of work who do not qualify for unemployment insurance include part-time, temporary, and self-employed workers, and school graduates. There are five main reasons unemployment benefits would be declined: not being able or available to work, voluntary separation from work without a good cause, discharge connected to misconduct, refusal of suitable work, and unemployment resulting from a labor dispute.^[37][38]

Generally, the worker must be unemployed through no fault of his/her own. The unemployed person must also meet state requirements for wages earned or time worked during an established period of time (referred to as a “base period”) to be eligible for benefits. In most states, the base period is usually the first four out of the last five completed calendar quarters prior to the time that the claim is filed.^[39]Unemployment benefits are based on reported covered quarterly earnings. The amount of earnings and the number of quarters worked are used to determine the length and value of the unemployment benefit. The average weekly payment is $293.^[40]

As a result of the American Recovery and Reinvestment Act passed by Congress in February 2009, many unemployed people can receive up to 99 weeks of unemployment benefits; this may depend on State legislation. Before the passage of the American Recovery and Reinvestment Act, the maximum number of weeks allowed was 26.

[edit]Application process

It generally takes two weeks for benefit payments to begin, the first being a "waiting week", which is not reimbursed, and the second being the time lag between eligibility for the program and the first benefit actually being paid.

To begin a claim, the unemployed worker must apply for benefits through a state unemployment agency.^[39] In certain instances, the employer initiates the process. Generally, the certification includes affected person affirming that they are "able and available for work", the amount of any part-time earnings they may have had, and whether they are actively seeking work. These certifications are usually accomplished either over the Internet or via an interactive voice response telephone call, but in a few states may be by mail. After receiving an application, the state will notify the individual if they qualify and the rate they will receive every week. The state will also review the reason for separation from employment. Many states require the individual to periodically certify that the conditions of the benefits are still met.

[edit]Disqualification

If a worker's reason for separation from their last job is due to some reason other than a "lack of work", a determination will be made about whether they are eligible for benefits. Generally, all determinations of eligibility for benefits are made by the appropriate State under its law or applicable federal laws. If a worker is disqualified or denied benefits, they have the right to file an appeal within an established time-frame. The State will advise a worker of his or her appeal rights. An employer may also appeal a determination if they do not agree with the State's determination regarding the employee's eligibility.^[39]

[edit]Measurement

[edit]Current data

Each Thursday, the Department of Labor issues the Unemployment Insurance Weekly Claims Report.^[41] Its headline number is the seasonally adjusted estimate for the initial claims for unemployment for the previous week in the United States. This statistic, because of its timeliness, is an important indicator of the health of the labor market, and more broadly, the vigor of the overall economy.

[edit]Unemployment insurance outlook

Twice a year, the Office of Management and Budget delivers an economic assessment of the unemployment insurance program as it relates to budgetary issues.^[42] As it relates to the FY 2012 budget, the OMB reports that the insured unemployment rate (IUR) is projected to average 3.6% in both FY 2011 and in FY 2012. State unemployment regular benefit outlays are estimated at $61 billion in FY 2011 and $64.3 billion in FY 2012, down somewhat from Midsession estimates.^[42] Outlays from state trust fund accounts are projected to exceed revenues and interest income by $16.0 billion in FY 2011 and $15.1 billion in FY 2012.^[42] State trust fund account balances, net of loans, are projected to continue to fall, from -$27.4 billion at the end of FY 2010 to -$62.7 billion at the end of FY 2013, before starting to grow again.^[42] Net balances are not projected to become positive again until well beyond FY 2016. Up to 40 states are projected to continue borrowing heavily from the Federal Unemployment Account (FUA) over the next few years.^[42] The aggregate loan balance is projected to increase from $40.2 billion at the end of FY 2010 to a peak end-of-year balance of $68.3 billion in FY 2013. Due to the high volume of state loans and increased EB payments, FUA and EUCA are projected to borrow $26.7 billion from the general fund in FY 2011 and an additional $19.4 billion in FY 2012, with neither account projected to return to a net positive balance before 2016.^[42] The general fund advances must be repaid with interest.^[42]

Date: 2014-12-29; view: 979