Nearly half of U.S. states and jurisdictions are running dangerously low on unemployment cash.
A decade of sharp cuts to state unemployment programs threatens to leave laid-off workers more vulnerable than during the Great Recession.
The generosity of unemployment benefits varies greatly among states. Unemployed workers in South Carolina and Missouri may receive $1,500 less and $1,400 less, respectively, than they would have heading into the Great Recession,. Workers in Kansas could receive $2,000 less, and workers in North Carolina could lose $2,700.
Federal assistance to state unemployment systems accounts by law for half the number of weeks that states already offer. Consequently, the states that cover the fewest number of weeks would receive the least help from any increase. For example, a state that offers 20 weeks' unemployment benefits would get 10 extra weeks' federal funding, while a state that offers 26 weeks would get 13.
“At some point, it gets to be a level where employers come to policymakers and say, ‘Hey, this is crazy. I want to hire people but I can’t afford to, because the payroll tax I would have for that is so high,’” said Matt Weidinger, a researcher at the right-leaning American Enterprise Institute.
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