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Wednesday, Apr 21, 2021

Do most states set unemployment benefits above the federal minimum wage?

Austin Tannenbaum, Gigafact Foundry
yes

Each state sets its own rules regarding unemployment benefits, including benefit duration and maximum benefit amounts. Only six states cap their unemployment benefits at a level below the federal $7.25 hourly minimum wage, according to a CNBC analysis that used average benefit data from the Department of Labor.

In practice, the analysis found that in July 2020, the average claimant received an unemployment benefit less than the federal minimum wage in 22 states. This suggests that last July, 28 states paid out more in unemployment benefits than a minimum wage job would have, assuming a 40-hour work week.

In addition to state benefits, the federal government has temporarily funded additional benefits to provide relief for unemployed Americans during the coronavirus pandemic. A $300-per-week pandemic unemployment supplement was recently extended to Sept. 6, 2021.

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