Unemployment’s Down, But More Unemployed Workers Lack Jobless Benefits

Off the Charts Blog | Center on Budget and Policy Priorities | Unemployment’s Down, But More Unemployed Workers Lack Jobless Benefits

In 2009, when the economy hit bottom and the unemployment rate peaked, 14.3 million workers were officially unemployed and 9.2 million of them received UI benefits — leaving 5.1 million jobless workers with no UI benefits.  In the first half of 2013, there were fewer officially unemployed workers — 11.9 million.  But there were more unemployed workers not receiving UI benefits — an estimated 6.7 million.  In other words, the number of unemployed workers who are in the worst shape because they have neither wages nor unemployment benefits is greater now than at any previous point in many years. . . .

A smaller share of unemployed workers now receive UI for several reasons.  One is the length and depth of the protracted jobs slump, which has left many workers unable to find work before their UI benefits run out.  In addition, a number of states have cut the number of weeks of regular, state-funded UI benefits in recent years; these changes also shorten the number of weeks of federal UI benefits a person can subsequently receive.

In addition, the duration of federal UI benefits (which go to long-term unemployed workers) has fallen.  This reflects several factors.  One is the decline in the official unemployment rate in many states, which itself leads to automatic reductions in the number of weeks of federal Emergency Unemployment Compensation benefits available in those states.