Resource Policy

How unemployment insurance access and benefits vary by state

This economic analysis article examines how state-level policy variations have created increasingly wide disparities in Unemployment Insurance (UI) benefit levels and access.

Organization: Federal Reserve Bank of Minneapolis

Authors: Ayushi Narayan, Ryan Nunn

Published Year: 2025

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The resource evaluates the shifting landscape of UI through two primary metrics: the recipiency rate (the percentage of unemployed individuals who actually receive benefits) and the replacement rate (the ratio of weekly benefits to a claimant’s average weekly wages).

The authors present data showing that over the past decade, state systems have diverged significantly, driven largely by cost-saving measures and structural drawdowns passed in the wake of the Great Recession.