A main goal of the U.S. Unemployment Insurance (UI) program is to provide temporary income support to workers who lose their jobs through no fault of their own. Benefits supply only partial wage replacement and are time-limited. To minimize the negative impacts of job loss, unemployed workers must make a variety of adjustments in their activities both shortly after job loss and in the ensuing months, such as developing a strategy for finding a new job, decreasing consumption levels, and participating in public programs that provide income support. The U.S. Department of Labor commissioned this study of UI recipients to gain an understanding of short- and medium-term adjustments after their job losses.

The study examined UI recipients' experiences with the UI program, work search efforts, reemployment, and personal finances. The study used data from a two-wave longitudinal survey and UI administrative records in two geographic areas-the Los Angeles metropolitan statistical area and the Central Valley. Wave 1 of the survey was administered close to the date at which recipients began collecting UI. Wave 2 was administered about six months later.

The findings related to experiences with the UI program indicated that UI recipients were satisfied with UI processes and the program overall.

The findings related to work search efforts indicated that three-fourths of recipients did not have a job in Wave 1 of the survey, but by Wave 2, more than half of recipients had a job. Those who were unemployed for both waves were most likely to look for work by contacting friends, relatives, or professional associates. Moreover, those seeking employment at both waves did not materially change the characteristics of the employment they sought over time. From Wave 1 to Wave 2, the percentage of recipients who ever used reemployment services from an American Job Center (AJC) increased by 8 to 10 percentage points. By Wave 2, 43 percent of Los Angeles recipients and 33 percent of Central Valley recipients received information on education or job training programs from an AJC.

With regards to reemployment, the study found that most were reemployed by the second wave. Many reemployed recipients returned to their previous employer. In the Central Valley, those who were reemployed by a different employer were more likely to be offered paid sick days, a retirement savings or pension plan, and health insurance than they were through their pre-UI job. However, there was no significant change in these benefits for those reemployed with new employers in Los Angeles.

Finally, the study examined UI recipients' financial experiences. It found that UI recipients' average debt and loan amounts increased over time, though average savings did not significantly decrease. Ninety-seven percent of recipients reported in Wave 1 that UI payments were important in helping them meet their financial obligations and avoid financial losses.