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Individuals who lose their jobs may have the skills and desire to start their own businesses. Some states have taken action to help unemployed workers create their own jobs by establishing Self-Employment Assistance (SEA) programs, which allow Unemployment Insurance (UI) eligible individuals who meet SEA program requirements to receive a weekly self-employment allowance while they are setting up their businesses. This allowance is equal in amount and duration to regular UI benefits.

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, so as to balance providing income support during unemployment and preserving incentives for benefit recipients to return to work. Most UI claimants who begin receiving benefits during non-recessionary periods can collect them for up to 26 weeks.

The Unemployment Insurance (UI) program was designed to reduce financial hardships for unemployed workers, assist with reemployment, and ameliorate the negative effects of unemployment on the economy as a whole. The loss of a job poses major hardships for many workers and their families. They often need to begin a potentially challenging search for new employment and also adjust their spending patterns and seek other sources of income. For qualified unemployed workers, UI benefits can help reduce the urgency for such adjustments.

The U.S. Army and the U.S.

The recession that began in late 2007 posed major challenges for the U.S. labor market, including a high unemployment rate and a steep increase in unemployment durations. The federal policy response to the recession and the lingering weak labor market included substantial changes to the unemployment compensation (UC) system, which is administered as a partnership between states and the federal government. Twelve pieces of federal legislation affected the UC system from June 2008 to January 2013, the most comprehensive of which was the American Recovery and Reinvestment Act of 2009 (ARRA).

The report examines expansions to the unemployment compensation system that followed the onset of the Great Recession. Before the recession, eligible workers losing a job could collect up to 26 weeks of unemployment insurance (UI) benefits in most states. Near the end of 2009, up to 99 weeks were available in high-unemployment states through the UI program, the Emergency Unemployment Compensation Act of 2008 (EUC08) program, and the Extended Benefits (EB) program. The researchers' main analysis used administrative and survey data on 2,122 recipients in 12 states.

Typically, unemployed workers who have met their state’s eligibility criteria for benefits can receive up to 26 weeks of unemployment benefits, which are intended to provide a financial cushion while the workers adapt to the loss of a job and household income. These state-funded benefits, often referred to as regular Unemployment Insurance (UI), are available regardless of the strength of the economy.

The report describes a study where researchers examine the impact of job displacement on wealth holdings of older workers. Using data from the Health and Retirement Study, they measure the impact of job loss on the total wealth and its subcomponents. They find that a typical worker experiences a persistent reduction in his/her wealth balances at a rate of 8 percent six or more years post job loss. Wealth shocks of this magnitude during the years leading up to retirement may jeopardize wealth adequacy during retirement.

The goal of the report is to place the Emergency Unemployment Compensation Act of 2008 (EUC08) program (together with its many additions and amendments) into a theoretical and historical context in order to highlight the similarities and differences among similar programs.