The number of workers who are exhausting all of their temporary federal UI benefits before finding work is a key indicator of whether the number of weeks of TEUC benefits is adequate. During the current jobless recovery, a much larger number and percentage of workers are exhausting their federal UI benefits before finding work than was the case following the 1990-91 recession.
Since the current program began in March 2002, 69 percent of temporary federal UI recipients – representing more than 4 million people – have exhausted those benefits before finding work. In the last recession, 51 percent of temporary federal UI recipients – or just over 3 million people – exhausted their benefits before finding work over a similar time period.
Many more workers made the transition from UI check to paycheck during the last recession.
The difference in generosity of the two programs – typically 13 weeks now versus 20 weeks in the last recession – is the main reason why a million more unemployed workers have exhausted their federal UI benefits before finding a job under the current program.
