How Unemployment Benefits Work in USA

Unemployment Benefits

Currently, due to the worldwide impact from COVID-19 and its variants, the amount of unemployment in the United States increased as a consequence of the pandemic virus that badly impacted the social, political and economic situation of the country.

The United States dared to take the decision to actively support those people who became unemployed during the pandemic period. By taking responsibility for covering the necessary expenses for a certain period of time through an insurance policy. This has to some extent helped in solving the financial problem that left many people without earning an income to fulfill the basic needs.

How does unemployment insurance work in USA?

They are considered as a type of program that the U.S. government has to directly support any person who becomes unemployed without being responsible for them. It is a temporary protection plan – until you get a stable job – to receive this type of financial assistance. The U.S. government administration tries to protect those families that do not have a stable income, with the purpose of covering certain types of income that the worker in charge had.


Unemployment insurance can only cover 25% to 50% of the total salary that the unemployed person already had. Of course, everything will depend on the state where the person is located, since the laws, structure and ways to cope with the legal responsibilities are different from one state to another.

On the other hand, it must be taken into account that not all people have the possibility of entering the assistance program. This is because the insurance has limitations, where normally, they take into account those who have very low income.

Check out: Ways to generate extra income

Eligibility Criteria?

The most important requirements for unemployment insurance in the United States are:

  • The dismissal from employment must be justified with a justified and imputable or illegal cause.
  • The individual has not voluntarily resigned from the place where he/she used to work.
  • At the time of obtaining unemployment insurance, the individual must demonstrate and certify that he/she is looking for a new job.
  • It must be taken into account that the requirements may vary according to the state where the person is, and also, the situation and context of unemployment.
  • Have worked for four of the last five quarters of the year at the location.
  • Be physically and mentally prepared to work, where it is justified that you are not receiving disability or other state benefits.
  • In the event you are elected for unemployment insurance and will begin receiving unemployment insurance benefits, there is a possibility of rectifying eligibility. Since the benefit is entirely temporary.

About the benefits

This assistance program for unemployed persons offers a benefit of 12 to 26 weeks depending on the case and the salary that the person had. However, it may vary according to the state where the person is. Also, in case there is a problem, there is the possibility of an extension to cover the individual for a longer period of time.

Author Bio:

I am Nikesh Mehta, owner and writer of this site.

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I’m an analytics and digital marketing professional and also love writing on finance and technology industry during my spare time. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected] or LinkedIn profile.

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